Snowy Hydro has taken significant strides in bolstering its renewable energy portfolio, securing long-term contracts that could reshape Australia’s energy landscape. The company has inked deals with Aula Energy and TagEnergy, adding substantial wind and battery storage capacity to its portfolio.
Under a 15-year power purchase agreement (PPA) with Aula Energy, Snowy Hydro will procure 120MW of renewable energy from the Carmody’s Hill Wind Farm in South Australia. This agreement, set to begin supply in early 2029, will support Snowy Hydro’s retail load growth in the region. Aula Energy CEO Chad Hymas hailed the deal as a major step forward, emphasizing Snowy Hydro’s leadership in driving market change towards a sustainable future.
Additionally, Snowy Hydro has entered into a 15-year virtual toll agreement with TagEnergy for 105MW (four-hour duration) from the 150MW Golden Plains battery energy storage system (BESS) in Victoria. The Golden Plains BESS is scheduled to begin operations in late 2027. This agreement allows Snowy Hydro to access storage products in the National Electricity Market without the need for construction and capital investment. TagEnergy managing partner Andrew Riggs highlighted the importance of large-scale energy storage in achieving a more secure and flexible supply of clean electricity for Victoria.
These agreements follow Snowy Hydro’s earlier 15-year, 220MW, four-hour virtual tolling agreement with Akaysha Energy for the 311MW Elaine BESS. In total, these battery agreements provide 325MW of battery storage, enhancing Snowy Hydro’s ability to deliver cost-effective energy solutions to a diverse range of clients.
Snowy Hydro CEO Dennis Barnes emphasized the strategic significance of these contracts, bringing the company’s contracted wind, solar, and battery storage capacity close to 2,200MW. This fosters the development of over 3,600MW of renewables and firming projects in Australia, bolstering the country’s transition to renewable energy. Barnes highlighted Snowy Hydro’s unique mix of on-demand power and pumped hydro energy storage, which enables three times the clean wind and solar to come online.
The implications of these developments are profound. By securing long-term contracts and enhancing its storage capacity, Snowy Hydro is positioning itself as a key player in Australia’s renewable energy transition. The company’s ability to integrate large-scale renewable energy projects with its existing infrastructure could serve as a model for other energy providers. Moreover, these agreements demonstrate the growing importance of energy storage in stabilizing the grid and ensuring a reliable supply of clean electricity.
As Australia continues to grapple with the challenges of transitioning to a renewable energy future, Snowy Hydro’s strategic moves could pave the way for a more sustainable and resilient energy sector. The company’s focus on end-to-end generation and retail services, coupled with its commitment to supporting retail load growth, underscores its pivotal role in shaping the future of energy in Australia.