Snowy Hydro 2.0 has blown out to 12 times its original cost – but the CEO says it ‘could have been worse’
Summary
The Snowy Hydro 2.0 renewable energy project in Australia has seen its cost grow from an initial $2 billion to up to $25 billion. The project, which involves building tunnels and an underground power station, is now expected to finish in 2029, several years later than first planned.Key Facts
- Snowy Hydro 2.0 was first announced in 2017 with a projected cost of $2 billion.
- The estimated cost increased to almost $13 billion in 2023, and now the new estimate is between $22.2 billion and $25 billion.
- The project involves creating tunnels up to 27 km long to connect two reservoirs and will generate 2,200 megawatts of power.
- Construction challenges include a tunnel boring machine named Florence getting stuck for nearly a year.
- About 5,000 workers are currently involved in the project, with machine tunneling 65% complete.
- Original completion was expected by 2026-27 but has been pushed back to late 2029.
- The Australian government plans additional oversight and financial support, possibly involving private funding.
- Delays and cost overruns are due to technical complexity, productivity issues, and rising global prices for materials and labor.
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