Snowy Hydro has strengthened its position in the Australian electricity market by securing two new long-term energy contracts totalling 225 MW. The agreements, signed with Aula Energy and TagEnergy, aim to ensure the availability of flexible, dispatchable capacity as coal-fired power exits the grid.
120 MW of wind energy secured from Aula Energy
The first contract involves a 15-year Power Purchase Agreement (PPA) with Aula Energy for 120 MW of wind energy from the Carmody’s Hill Wind Farm in South Australia. The project, currently under development, is expected to begin supplying electricity in early 2029.
The Carmody’s Hill project aligns with Snowy Hydro’s retail growth targets in South Australia, a state considered strategic for grid flexibility. Snowy Hydro stated that this agreement supports its expanding retail customer base, which now includes more than 1.6 million residential and commercial clients.
105 MW of virtual storage secured through Golden Plains project
The second agreement covers a 15-year virtual tolling deal with TagEnergy, providing 105 MW of four-hour battery storage capacity through the Golden Plains Battery Energy Storage System (BESS) in Victoria. The project is scheduled to become operational in late 2027.
Structured as a virtual tolling product, the agreement enables Snowy Hydro to access storage capacity without owning the asset or incurring capital expenditure. This model enhances the provider’s fast-response capabilities, supplementing its existing hydro infrastructure, including the Snowy 2.0 expansion.
Energy portfolio now approaches 2,200 MW
With the new agreements, Snowy Hydro’s total contracted capacity across wind, solar, and storage reaches nearly 2,200 MW. The company also reports supporting the development of more than 3,600 MW of renewable and firming projects in the national market.
Snowy Hydro had previously signed a 15-year agreement with Akaysha Energy for 220 MW of storage at the Elaine BESS site in Victoria, further enhancing its ability to provide flexible solutions to industrial, wholesale, and retail market participants.
