Snowy 2.0 Hydropower Project Costs Blow Out to $25 Billion
The cost of delivering Snowy 2.0 has doubled since the last estimate, with the project now expected to become fully operational a year later than expected. The project's timeline has been pushed back, with first power expected in early 2029 and the project to be fully operational later that year.
A major review of Australia's largest renewable energy project has revealed that the cost of delivering Snowy 2.0 could reach up to $25 billion, with the project expected to become fully operational in late 2029.
The cost blowout is a significant increase from the initial budget of $2 billion set seven years ago, and the project's timeline has also been pushed back. Snowy Hydro has set a target cost of $22 billion, but is allowing for an additional $3 billion to be spent if required.
Project Background
Snowy 2.0, based in the New South Wales Snowy Mountains, aims to underpin Australia's electricity security and affordability over coming decades as the country transitions away from fossil fuels. The project involves linking two dams through about 27 kilometres of tunnels and includes an underground pumped hydro station the size of the Sydney Opera House.
The project will act like a giant battery, pumping water upstream when electricity is cheap and releasing it back downstream to generate power when demand is high. Snowy 2.0 will store excess power from wind and solar and deliver it to the grid when needed.
Cost Blowouts and Delays
Snowy Hydro CEO Dennis Barnes said he was