Snowy Hydro Expansion creates Optimism for Large Energy User
Emily Wood | March 16, 2017
The Energy Users Association of Australia (EUAA) welcomes the Federal Government’s plan to expand the Snowy Hydro scheme.
“Expanding an existing resource such as the Snowy will likely improve energy security across the NEM and has the potential to reduce peak pricing which is good news for all energy users,” said EUAA Chief Executive Officer, Andrew Richards.
While the plan will take a number of years to be implemented, once completed the project will act like a huge battery in the NEM and enable the operators to create electricity as needed to meet market requirements or respond in times of high demand.
“Energy security, affordability and sustainability are key issues for EUAA members and this proposal from the Federal Government has the ability to hit most of these key elements,” added Mr Richards.
Large energy users have been slugged with huge increases in electricity contacts in recent times. One member reported its contract renewal included a price increase in electiricty of $20 million from the previous contract. While some energy users can pass price increases on, others are forced to absorb them which is likely to impact their ability to operate in Australia.
“Delivering the project within the four-year timeframe proposed will provide optimism for large energy users and the future of their businesses in Australia.”
EUAA members are part of a critical network of companies spanning manufacturing, food processing, transport, energy, mining and raw material providers that benefit the Australian community. Price rises across this group have flow on effects to all users.
