Snowy 2.0 hydropower upgrade sees costs soar to $25 billion and finish pushed to 2029

Snowy Hydro has released a comprehensive cost reassessment for the Snowy 2.0 pumped-hydro project, indicating that total expenditures could reach $25 billion, with a contingency of $3 billion beyond the $22 billion target. The scheme, which began construction seven years ago in the Snowy Mountains of New South Wales, now expects its first electricity generation in early 2029 and full commissioning later that year, pushing the timeline back by a year from earlier estimates.

Originally budgeted at $2 billion with a 2021 operational date, the project’s cost was revised to $12 billion after a 2023 “reset,” but recent findings show costs have more than doubled. CEO Dennis Barnes said the project’s earlier design immaturity and the need for a larger, longer-term workforce—now about 5,000 staff—have driven the overruns. The review notes that 65% of machine tunnelling and 90% of cavern excavation are finished, and construction of the underground power station is progressing. While Barnes highlighted that the project is in its strongest position yet, he cautioned that further cost increases cannot be ruled out given the complexity of the undertaking.