Snowy Hydro seeks government backing as project costs hit 25 billion dollars

Snowy Hydro chief executive Dennis Barnes stated that the Albanese government should support the Snowy 2.0 pumped hydro project despite construction costs doubling to as much as 25 billion Australian dollars. RenewEconomy reported that Barnes addressed Senate Estimates for several hours on Monday regarding the cost increases. [1]

Barnes explained that the project deserves continued government backing due to its broad benefits to the electricity grid and to the corporation itself. RenewEconomy reported that Snowy Hydro has not calculated a net present value for the updated project scope during this reset, contrasting with previous cost updates where officials touted the economic valuation. [1]

As FTMQ Climate reported earlier, Australian energy developer Snowy Hydro had been preparing an updated cost review for the delayed infrastructure scheme. Critics previously estimated that the final price tag for the Snowy 2.0 project could exceed 20 billion Australian dollars. [3]

The operational timeline for the pumped hydro expansion has also experienced significant delays. RenewEconomy reported that the project is currently not expected to be commissioned until October 2029. [1]