Business · Energy & Commodities · 15 hrs ago
Snowy 2.0 cost could reach $25 billion, with completion pushed to 2029
Snowy Hydro says Snowy 2.0 could cost up to $25 billion, far above its original $2 billion estimate.
The project is being built beneath Kosciuszko National Park in New South Wales, where crews are digging tunnels between existing reservoirs.
Its completion has been pushed to late 2029, after repeated delays.
Difficult underground conditions, planning and cost-estimation problems, and rising construction costs have added to the challenge.
When finished, the project is designed to store renewable power by pumping water uphill when electricity is plentiful and releasing it through turbines when the grid needs it.
Its storage could help steady Australia’s electricity supply when wind and solar power are scarce, as ageing coal-fired plants are due to close over the coming decade.
The Albanese government plans further oversight and financing changes in the coming weeks, and another contribution of taxpayer funds is expected.
Snowy Hydro 2.0 could cost up to $25 billion, with the latest estimate putting the project’s cost at $22.2 billion before contingency.
Completion and full commissioning have been pushed to late 2029.
The project links two existing Snowy reservoirs through tunnels beneath Kosciuszko National Park.
Snowy Hydro says difficult geology, technical complexity, planning problems and rising construction costs have contributed to delays and overruns.
The Albanese government is expected to announce additional oversight and financing arrangements in the coming weeks.
- Who
- Snowy Hydro Limited released the updated cost and schedule. The project is being built by principal contractor Future Generation Joint Venture.
- What
- Snowy 2.0’s estimated cost has risen to at least $22.2 billion, with a contingency that could take it to $25 billion. Completion and full commissioning are now expected in 2029.
- When
- The updated projections were released on Thursday night, October 22, 2026.
- Where
- Beneath Kosciuszko National Park in the Snowy Mountains of New South Wales.
- Why
- Snowy Hydro cited technical complexity, difficult geology, planning and cost-estimation challenges, missed productivity targets, and higher construction costs.
This story does not have two clearly opposing sides.
The project was first conceived, with an initial estimate of $2 billion.
The project received final investment approval, with an estimated cost of nearly $6 billion.
Snowy Hydro revised the expected cost to about $12 billion and pushed completion to 2028.
Snowy Hydro ordered a reassessment after anticipating another major cost overrun.
The updated estimate rose to $22.2 billion, with a contingency that could bring the cost to $25 billion, and completion moved to late 2029.
- Latest estimated cost
- At least $22.2 billion
- Contingency ceiling
- $25 billion
- Expected completion
- Late 2029
- Power capacity
- 2,200 megawatts
- Tunnel length
- Up to 27 kilometres
- Location
- Kosciuszko National Park
3 sources
What people are saying
This project is incredibly complex, it is off the charts even for mega projects
incredibly disappointing
Moving from a fixed-price contract, which was never suitable for such scale, uniqueness and complexity, has protected the project from an even greater cost increase.
Snowy 2.0’s massive, long-duration storage will be the grid’s insurance policy against multi-day wind and solar droughts, helping to prevent blackouts and control price spikes that would otherwise flow through to household electricity bills