Prime Minister Malcolm Turnbull has announced $8 million in funding to determine the feasibility of his pet project, the Snowy 2.0 hydro scheme.
Visiting the area this week, Turnbull announced the funding, which will come from the Australian Renewable Energy Agency for Snowy Hydro.
The company’s chief executive Paul Broad said the funding would assess the proposal, which would reportedly involved building a new power station around 200 metres long.
The station would be a kilometre underground, creating a major engineering challenge, and would take around six years to complete.
The feasibility study will be undertaken in December.