Snowy 2.0 Faces Major Cost Blowout Amid 67% Completion Review

Snowy Hydro has ordered a comprehensive line-by-line reassessment of costs for its Snowy 2.0 pumped hydro project amid escalating geological challenges, productivity shortfalls, and supply chain cost increases. Originally budgeted at around A$2 billion in 2017, the project's cost has ballooned to an estimated A$12 billion after a 2023 reset, though analysts warn total expenses could surpass A$20 billion. Despite being 67% complete and progress recovering from previous stoppages, the project faces significant pressures including delays caused by tunnel boring machine halts and safety-related work stoppages. CEO Dennis Barnes emphasized that while delivery remains targeted for December 2028, the current budget is no longer sufficient, and the reassessment overseen by independent experts may take up to nine months. Critics question the economic viability of the project given the high costs relative to rapidly falling battery storage prices and the broader implications for Australia's green energy transition. The Albanese government, as the sole shareholder, has been informed of the looming cost overruns, highlighting the project's challenges and its impact on taxpayer funds.