Home / Business and Economy / Snowy 2.0 Hydropower Project Faces Significant Cost Overrun and Delays
Snowy 2.0 Hydropower Project Faces Significant Cost Overrun and Delays
3 Oct
Summary
- Snowy 2.0 project in Kosciuszko national park 67% complete
- Cost overruns due to supply chain issues and tunnel boring machine delays
- Project cost estimate escalates from $2bn to almost $13bn by 2023
As of October 3rd, 2025, the Snowy 2.0 pumped hydro project in Kosciuszko national park is facing a major cost overrun and delays. The giant renewable energy storage project, first announced by the Turnbull government in 2017 with an estimated cost of $2 billion, has seen its price tag escalate to almost $13 billion by 2023.
Construction on the project, which aims to link two existing Snowy reservoirs through tunnels up to 27km long, is currently 67% complete. However, Snowy Hydro CEO Dennis Barnes has revealed that significant supply chain cost increases, including for an underground power station, as well as issues with a major tunnel boring machine, have contributed to the ballooning costs.
The company has now ordered a line-by-line reassessment from its Italian construction partners, with the goal of determining a new total cost for the project. Barnes conceded that the company's most recent $12 billion estimate will not be achieved, and the Albanese government has been made aware of the looming cost blowout.
Despite the challenges, Barnes emphasized the critical importance of the Snowy 2.0 project to Australia's energy transition, stating that it is expected to provide more than half of the long-duration storage needed to achieve the country's net-zero emissions target by 2050.
