The detailed modelling underpinning the investment in the massive Snowy 2.0 pumped hydro scheme confirms the worst fears of many in the industry: it will likely cause wholesale prices to rise in the medium to long term, it will sustain the business models of coal generators, and it will put a huge dent in the battery storage industry.
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| PM Scott Morrison "selling" Snowy 2.0 pumped hydro. |
The modelling, quietly posted on the Snowy Hydro website after the blazing headlines generated from the $1.4 billion injection by the Scott Morrison Coalition government, confirm that the investment is focused more on protecting the future of the government-owned utility than it is about broader benefits to the market.
The most shocking revelation, however, is that in the “base case” modelling, built around current policy settings, wholesale prices on the National Electricity Market would be higher than they otherwise would be in the medium to long term.
Read the story from RenewEconomy by Giles Parkinson - “Modelling suggests Snowy 2.0 will lift prices, defend coal, kill batteries.”
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