Snowy 2.0 project cost rises to $25 billion, completion delayed to 2029

The Snowy Hydro 2.0 renewable energy project in Australia could now cost up to $25 billion, which is 12 times more than the original $2 billion estimate from 2017, according to reports by nvi.com.au and hepburnadvocate.com.au.

Tunnelling work for the project is 65% complete, but the initial completion date of 2021 has been pushed back to late 2029 due to increased labour costs and geological difficulties, the updates said.

Energy Minister Chris Bowen and Finance Minister Katy Gallagher released the update, explaining that the project underwent a reset after persistent cost pressures linked to the original design immaturity were identified.

Snowy 2.0 is intended to support Australia's clean energy transition by storing excess power generated by wind and solar sources. Despite calls to abandon the project, the Labor government remains committed to continuing it.

Snowy Hydro's chief executive expressed disappointment over the cost overruns but emphasized the importance of the project for the future energy grid, which will rely on renewables backed by pumped hydro, gas, and batteries.