The Australian federal government has named Dennis Barnes – a former head of New Zealand utility Contact Energy and a long time executive of Origin Energy – as the new boss of the crisis-hit Snowy Hydro.
Barnes replaces Paul Broad, who resigned suddenly last year after an apparent spat with federal energy minister Chris Bowen, ostensibly about the hydrogen component of its controversial new gas generator at Kurri Kurri, but also as details emerged of lengthy delays and big cost over-runs at the Snowy 2.0 project.
Bowen was upset that the previous federal Coalition government had hidden the fact that Snowy 2.0 was delayed and facing big cost over-runs, and Snowy itself was not exactly forthcoming, failing to inform even the Australian Energy Market Operator despite the minister’s revelations.
The problems around Snowy 2.0 have deepened given the collapse of one of the main contractors, Clough, which has been bought out – or at least the Snowy 2.0 contract component – by its Italian based senior partner WeBuild.
Snowy 2.0 is considered an important part of the storage and dispatchable energy needs for Australia’s accelerating switch to wind and solar, even though many think the project is poor value for money, and question its economic and environmental credentials.
Barnes served as CEO of Contact Energy in New Zealand from 2011 to 2020 and the government says he brings a wealth of experience to the position, including a 13 year stint in various roles at Origin Energy. He is also a director of renewable energy developer Tilt Renewables.
He will replace Roger Whitby, who has been acting CEO since Broad’s abrupt departure August 2022. Broad is now an advisor to NSW premier Dominic Perrottet, who described Broad as one of the “best and brightest.”
Bowen said Barnes’ appointment comes at a pivotal time for the organisation.
“The work of Snowy Hydro over the next few years is crucial to Australia’s efforts to reach net zero by 2050 and its operations and strategic direction align with Barnes’ previous experience leading development of renewable energy projects,” Bowen said.
“He’ll be tasked with overseeing key projects, such as Snowy 2.0, it’s connection with HumeLink and the Hunter Power Project. Snowy Hydro operations are crucial to Australia’s transformation to a cleaner, cheaper and more secure energy system.”
Whitby will return to his role of Chief Operating Officer when Barnes starts work on Wednesday, February 1.
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