Snowy 2.0 Faces Further Delays and Budget Overruns
The Snowy 2.0 renewable energy project is now scheduled to deliver power by the end of 2028, according to Snowy Hydro. The company has not disclosed the additional funding required for the project, which has already exceeded its $12 billion budget.
The project is reported to be 70 percent complete.
An independent review is currently underway before Snowy Hydro formally requests more money from the federal government.
Project Overview
Snowy 2.0, Australia's largest renewable energy project, involves constructing a hydropower station 800 meters underground in Kosciuszko National Park. This facility will connect Tantangara Dam to Talbingo Reservoir via 27 kilometers of tunnels.
The system is designed to store surplus power from wind and solar sources and supply it to the national grid as needed.
It is expected to provide up to 2,200 megawatts of electricity to the national grid.
Cost and Schedule History
The Snowy 2.0 project has seen multiple revisions to its cost and completion schedule:
- 2017: Project announced with an initial cost of $2 billion and a target completion of 2021.
- Post-feasibility study: Cost revised to $6 billion.
- Later revision: Cost increased to $12 billion.
- October 2025: Snowy Hydro announced further cost blowouts beyond the $12 billion, stating more funds would be needed.
Snowy Hydro chief executive Dennis Barnes stated that previous cost assessments were not perfect and acknowledged the inability to foresee all issues by mid-2023.
The total cost blowouts have already exceeded $10 billion.
Financial Review and Transparency
A detailed cost reassessment is expected to conclude in the first half of 2026. Mr. Barnes has refrained from providing specifics on the additional funds required, citing the complexity of the project and the need for accuracy before public disclosure.
Federal Energy and Climate Change Minister Chris Bowen expressed disappointment over the cost reassessment in October 2025, emphasizing the government's scrutiny to ensure taxpayer value.
New Tunnel-Boring Machine (TBM)
To mitigate delays, Snowy Hydro acquired a fourth tunnel-boring machine (TBM) named Monica, which was officially unveiled recently. This acquisition followed persistent issues with an existing TBM, Florence, which encountered problems with soft ground and hard rock, causing delays and a sinkhole in Kosciuszko National Park.
Monica, costing approximately $75 million, is designed to navigate the project's complex geological conditions.
It is scheduled to begin operations on February 19. Around 5,500 people are currently employed on the project. Construction manager Tim Dean noted the significant effort involved in preparing for Monica's launch.