The proposal consists of 4 components and would start from 1 July 2022.

Component 1 would repurpose Snowy Hydro into the following two separate corporate entities:

• an electricity wholesale generation and storage company called Snowy Hydro Ltd
• a non-profit electricity and gas retail company called Power Australia Ltd.

Component 2 would require Snowy Hydro Ltd to construct at least 25 Gigawatts (GW) of wind, solar and storage capacity across the six years between 2023-24 and 2029-30:

• $40 billion of equity finance would be provided, as needed, to meet the 25 GW goal
• interest rates would be pegged to the overnight cash rate
• equity finance terms would be over an appropriate mix of 10, 20, 25 and 30-year periods.

Component 3 would require Power Australia Ltd to sell electricity to customers at cost after meeting generation, transmission, distribution, regulatory, operational and overhead costs.

Component 4 would reverse the $600 million equity investment for the 660 Megawatt (MW) open cycle gas turbine at Kurri Kurri in the Hunter Valley.