News

SNOWY 2.0 COST REASSESSMENT COMPLETE

22/10/2026

Target cost following contractor reassessment is $22.2 billion, with Snowy allowing for a cost scenario of $25 billion.
The project is now targeting to be fully commissioned in late 2029.
Machine tunnelling is 65% complete and cavern excavation 90% complete, with work to build the underground power station underway.
Snowy Hydro continues to strengthen oversight, controls and leadership to drive contractor productivity and cost performance, while prioritising safety.
Snowy Scheme expansion to provide long-duration energy storage equivalent to around 26 million home batteries, enough to power 3 million homes for a week.
GHD analysis shows substantial economic benefit, including the project adding $18.3 billion to the Australian economy.
Snowy 2.0’s long-term asset life means it is predicted to reduce wholesale electricity prices by more than $7 billion to 2075.

Snowy Hydro today announced the updated target cost to complete Snowy 2.0 is $22.2 billion, with an allowance for a cost scenario of $25 billion, following a comprehensive cost reassessment by principal contractor Future Generation Joint Venture (FGJV).

The higher cost scenario reflects Snowy 2.0’s uniqueness, risk and technical complexity, as well as FGJV’s cost estimation challenges.

Snowy Hydro CEO Dennis Barnes said the cost reassessment, which was subject to rigorous scrutiny and assurance by multiple layers of engineering cost experts, also updated the project’s schedule.

The new target completion date for Snowy 2.0 is late 2029.

The $22.2 billion target cost is not the amount that will have to be funded by taxpayers.

At the previous $12 billion cost estimate, around one-third or $4 billion, was Commonwealth investment in the company that Snowy Hydro did not need to repay.

The majority was funded by government and bank loans that as a profit-making business, Snowy must repay with interest, as well as Snowy’s own cashflows.

Work is underway on the Commonwealth’s preferred capital strategy at the new cost.

Mr Barnes said that while the cost increase is disappointing, the actions taken during the 2023 reset have protected the project from an even larger budget increase.

“I have no doubt that moving from a fixed price contract, which was never suitable for such scale, uniqueness and complexity, has protected the project from an even greater cost increase,” he said.

“It’s also likely that under a fixed price contract, the project would again be stopped under the weight of billions of dollars of claims from the contractor, as it was prior to the reset.”

Mr Barnes said the long term value of Snowy 2.0 to Australia’s energy reliability is stronger than ever.

“The scale of Snowy 2.0’s energy storage is world-leading. More than half of the total energy storage the grid needs by 2050 will come from Snowy 2.0 alone,” he said.

“Like the original Snowy Scheme, which still underpins energy reliability more than 70 years on, Snowy 2.0 is a generational investment in our energy sovereignty and a national asset owned by all Australians.”

The pumped hydro expansion of the Snowy Scheme will provide 350,000 megawatt-hours of storage, equivalent to around 26 million home batteries.

“Snowy 2.0’s massive, long-duration storage will be the grid’s insurance policy against multi-day wind and solar droughts, helping to prevent blackouts and control price spikes that would otherwise flow through to household electricity bills,” he said.

An independent economic study conducted by GHD on the delivery and operation of Snowy 2.0 found widespread benefits to national and regional economies, including:

Generating significant economic activity, with around 80% of the project’s budget being spent in Australia.
Contributing $18.3 billion to the Australian economy during the delivery phase alone.
Reducing wholesale electricity costs by more than $7 billion to 2075.

The cost reassessment found the primary reasons for the increased project cost were:

Detailed technical analysis continuing to identify the scale and nature of the design immaturity of the project when the final investment decision was made.
Construction complexities contributing to principal contractor FGJV not meeting productivity targets.
Cost and planning underperformance by FGJV leading to previous underestimating of the delivery scope.
Global cost escalation for equipment, services and people exceeding allowances made at the 2023 contract reset.

Snowy Hydro has taken action to strengthen the project’s delivery and cost performance, including:

Directing FGJV to establish a project control office with enhanced data and analytics to drive productivity and identify emerging risks early, which is now operational.
Embedding independent infrastructure delivery and cost experts in the project to bolster delivery oversight.
Establishing a new board oversight committee including external megaproject advisors to monitor and take action on progress and risk.
Driving changes in FGJV’s leadership on the project, including a new Project Director, responsible for daily cost and schedule performance on the ground, and a broad uplift with more senior, globally experienced megaproject leaders.

The contract established at the 2023 reset has strong provisions that motivate FGJV to manage cost and program, and meet criteria relating to safety, environment and quality.

Snowy Hydro will use these mechanisms to drive the best project outcomes and value for money.

“We’re now much further through the project than at the 2023 reset, meaning we’ve learned more and more risk is behind us,” Mr Barnes said.

“At the reset, only 44% of the construction design had been completed, now it’s 96%.

“While there are still risks to manage, the project is in its strongest position yet.”

With more than 5,000 people currently working on the project, this year:

Underground power station construction has started, marking a new phase of Snowy 2.0’s development.
Decommissioning tunnel boring machine (TBM) Lady Eileen Hudson has started, after completing its second tunnel, following 8.6-kilometres of tunnelling.
TBM Florence is almost at the halfway point of its 15-kilometre tunnelling journey.

Work front	Current progress	Progress at reset
Drill and blast tunnels	95%	20%
TBM tunnels	65%	19%
Power station complex excavation	90%	2%
Construction design	96%	44%

News

ANAO PERFORMANCE AUDIT: DELIVERY OF SNOWY 2.0

18/06/2026

Snowy 2.0 is our nation’s most critical energy project. Designed to operate for 150 years, it represents a generational investment in Australia’s energy sovereignty.

Snowy 2.0 will have an equivalent energy storage of around 26 million home batteries, providing more than half of the total energy storage the grid needs by 2050.

Snowy Hydro agrees with four of the ANAO’s five recommendations, covering enhanced documentation, reporting traceability and performance measurement within the existing governance framework. We partially agree with the remaining recommendation relating to public reporting.

While the recommendations do not propose fundamental changes to Snowy 2.0’s underlying delivery model, governance structure or management approach, we are committed to continually testing and improving our delivery oversight.

The report acknowledges that improvements in these areas have already been completed or are underway. The ANAO’s guidance informs many of these initiatives.

Many matters discussed in the report reflect deliberate commercial positions taken by Snowy Hydro to exercise our contractual rights and hold our principal contractor accountable on behalf of the Australian taxpayer.

Snowy Hydro remains committed to strong governance and oversight of Future Generation Joint Venture’s delivery of Snowy 2.0.

News

SNOWY 2.0 IS A NON-NEGOTIABLE FOR AUSTRALIA’S FUTURE ENERGY SECURITY

04/06/2026

Independent modelling from Baringa Partners confirms Snowy 2.0 is critical to maintaining reliable electricity supply and market stability after coal-fired power stations retire.

Snowy 2.0 will provide 350GWh of energy storage, the equivalent of 26 million home batteries, offering the multi-day reliability insurance that short-duration batteries cannot match.

Independent modelling from Baringa Partners released today confirms Snowy 2.0 is an indispensable insurance policy for Australia’s future energy mix.

Baringa’s white paper underscores that without the massive 350GWh of deep storage offered by Snowy 2.0, the National Electricity Market (NEM) faces a critical reliability gap short-duration batteries cannot bridge.

A scenario mapped by Baringa, when ageing coal-fired plants are retired, shows having short-duration batteries as the NEM’s only form of storage would place unprecedented stress on grid stability and drive increases in wholesale prices during wind and solar droughts. With Snowy 2.0, which can generate continuously for a week, as part of the energy mix, the system remains stable and average wholesale prices are suppressed by $7,095/MWh.

Snowy Hydro CEO Dennis Barnes said the findings offer a definitive look at why a post-coal grid must be backed by a mix of storage durations.

“Short-term batteries are the sprint-runners, vital for daily balancing, but only Snowy 2.0 can run the marathon.

“Batteries are the best value way of providing short-duration storage, but they cannot see the grid through the multi-day wind droughts that Australia has seen before and will inevitably see again.

“Without Snowy 2.0, grid resilience is heavily compromised, threatening continuous supply during prolonged lulls in wind and solar generation. Snowy 2.0 will provide 350GWh of storage, the equivalent of 26 million home batteries, and the scale required to ensure a reliable power supply for every Australian.”

Mr Barnes said Snowy 2.0 is a 150-year investment in Australia’s energy sovereignty.

“Like the original Snowy Scheme, which still underpins energy reliability more than 50 years after its construction, the pumped hydro expansion will be a national asset powering Australia for generations,” he said.

Despite the challenges that come with Snowy 2.0’s complexity, the project is hitting significant delivery milestones. Tunnel boring machine (TBM) Lady Eileen Hudson last month completed the six-kilometre tailrace tunnel connecting Talbingo Reservoir to the project’s underground power station complex. This is the TBM’s second tunnel, after completing an almost three-kilometre access tunnel earlier in the project.

Excavation of the power station caverns, almost a kilometre underground and with a volume greater than the Sydney Opera House, is almost complete and the project is readying for the start of power station construction.

Click here to read Baringa’s white paper: The role of deep storage in our electricity system.

News

MAJOR BREAKTHROUGH ACHIEVED AS TBM MOMENTUM BUILDS

15/05/2026

Tunnel boring machine (TBM) Lady Eileen Hudson has achieved a significant milestone, successfully breaking through into the Snowy 2.0 underground cavern complex and marking the completion of her tunnelling operations.
Australia’s most talked about tunnel boring machine, TBM Florence, has been performing strongly for some time and is now approaching the halfway point on its 15-kilometre tunnelling journey.
Australia’s largest renewable energy project continues to make progress, with the focus of the project transitioning to building the power station almost one kilometre underground.

A major milestone has been reached on Snowy 2.0, with TBM Lady Eileen Hudson completing excavation of a 6-kilometre tunnel and successfully breaking through into the underground cavern complex deep in the Snowy Mountains.

Crucially, this breakthrough marks the completion of the massive 2,300-tonne machine’s tunnelling work on the project, having previously excavated a 2.85-kilometre access tunnel before the 6-kilometre tailrace tunnel, which will connect Snowy 2.0’s underground power station to the lower water reservoir, Talbingo Dam.

Snowy Hydro CEO Dennis Barnes said the breakthrough is symbolic of the momentum being achieved at what is Australia’s largest renewable energy project.

“There’s nothing more exciting on a tunneling project than a breakthrough. Even more so with Snowy 2.0 because the geology we’re working with is extremely challenging,” Barnes said.

“The ground under the Snowy Mountains is making us work for every metre, but like the original Snowy Scheme, it’s inspiring to see what Australia can achieve when we take on the hardest tasks.”

Adding to this tunnelling momentum, Australia’s most talked about tunnel boring machine has found a new lease of life, with TBM Florence’s performance issues now a distant memory as it approaches the halfway mark on its 15-kilometre journey.

Mr Barnes said Florence is now consistently achieving personal bests.

Snowy 2.0’s recently commissioned fourth tunnel boring machine, Monica, is one of the world’s most advanced. Custom-built to get through the complex geology of the Long Plain Fault Zone, Monica is excavating the opposite end of the same tunnel as Florence.

The two machines will meet in the middle before being disassembled deep underground.

Mr Barnes says the key to Snowy 2.0’s increasing momentum is the skill and dedication of its roughly 5000-strong workforce.

“Snowy 2.0’s people are proud of the work they’re delivering, the way they’re solving problems and delivering incredible feats of engineering every day,” he said.

“They’re also proud of the legacy their work is creating for Australia.

“Just like the original Snowy Scheme, the project is difficult and not without its setbacks. But when we’re done, we’ll have an incredible asset owned by every Australian to underpin energy reliability and security for generations.”

News

BIG RIG DRAWS BIG CROWD

14/10/2025

More than 1500 people converged on Cooma on Sunday, October 12 to welcome the latest Snowy 2.0 big rig – one of the largest traffic loads ever transported in NSW.

The main drive of TBM Monica – an integral component of the project’s fourth mega borer – drew an excited crowd of onlookers to Cooma town centre.

Spectators also flanked driveways and homes between Bredbo and Adaminaby to catch a glimpse of the big rig.

The convoy tipped the scales at a mammoth weight of more than 450 tonnes – across five trucks and a trailer, driven by 210 wheels across 35 separate axles.

Snowy Hydro Head of Social Impact and Community Sarah Norris described the transfer as a major milestone for both the project and the community.

“We were blown away by the attendance – it was a truly special evening, with an incredible atmosphere, as people lined the footpaths for the best vantage point to watch,” she said.

“It almost felt like a festival was taking place – we had free hot choccies and coffees and talented musician Leon Fallon on-hand to keep the crowd entertained

“Thanks to everyone who attended, we appreciate there were quite a few little people that stayed up past their bedtimes to witness a little piece of Snowy history.”

The mega transfer evoked memories for some community members of the mighty Thornycroft Antars hauling machinery and construction equipment through Cooma as part of the original Snowy Scheme decades ago.

There are 23 oversize loads being carefully planned and transported to Snowy 2.0 sites over the coming weeks associated with the assembly of TBM Monica.

News

COST REASSESSMENT UNDERWAY FOR ON-SCHEDULE SNOWY 2.0

03/10/2025

Snowy Hydro has directed Snowy 2.0 principal contractor Future Generation Joint Venture (FGJV) to undertake a comprehensive line-by-line reassessment of its costs to deliver Snowy 2.0, as the project’s delivery remains set for its December 2028 completion.

At 67 percent complete, Snowy Hydro believes material cost pressures mean now is the time to oversee FGJV as it carries out the cost reassessment which is expected to take up to nine months to complete. Independent construction cost experts have been engaged to verify the principal contractor’s reassessment.

Snowy Hydro CEO Dennis Barnes said Snowy 2.0 has made good progress since the 2023 project reset. Delivery rates have almost doubled in the past two years, with the average monthly progress of 0.57 percent increasing to 0.91 percent, and August 2025 hitting 0.98 percent delivery. This is despite pressures that reflect cost and productivity challenges currently being experienced across countless major infrastructure projects.

“Since the reset, the project has generally been progressing well and is now 67 percent complete,” said Mr Barnes.

“Despite disruption, including work stoppages due to safety concerns and continuing challenges with geology, we’ve been able to recover that time and get us to where we need to be in terms of schedule.

“The reset was about getting Snowy 2.0 moving again by creating a more collaborative relationship with the principal contractor and achieving safe progress. We’ve done both, but the productivity uplift hasn’t been to the degree we needed.”

Some of the most significant sources of cost pressure for Snowy 2.0 since the reset include:

Costs associated with contractor productivity targets not realised: While the 2023 reset succeeded in substantially increasing productivity, there remain challenges. This is due to a combination of factors, including delays from TBM stoppages in 2024, work stoppages associated with safety concerns and general productivity underperformance. Our reassessment will examine past productivity performance and our future productivity requirements.
Costs of de-risking challenging geology no longer being able to be absorbed: A fourth TBM will be used to derisk challenging geological conditions through the Long Plain Fault Zone and help protect the project’s schedule. The initial assessment was that the cost to purchase, deploy and operate would be covered within the project costs, however cost pressures have meant this is no longer possible.
Supply chain cost increases: Our contractor has identified unforeseen supply chain cost increases to significant, bespoke procurement, including major offshore purchases associated with Snowy 2.0’s underground power station.

Mr Barnes said while the need to reassess Snowy 2.0’s cost is disappointing, the critical importance of the project to electricity users across the network has not changed.

“Snowy 2.0 will be a cornerstone of Australia’s transition to renewable energy, providing more than half of the long-duration storage the grid needs by 2050.

“It will enable the introduction of more wind and solar by acting like a giant battery, storing and delivering enough excess energy to power around 3 million homes for a week.

“Snowy 2.0 is being built to operate for 150 years. It is as important to Australia now as the original Snowy Scheme was decades ago.

“Like the original scheme, which still helps underpin electricity reliability today, the benefits of Snowy 2.0 will be felt for generations.”

News

TBM MONICA ON THE MOVE

03/10/2025

What weighs more than 137 tonnes, is seven metres wide and is transported by 152 wheels?

An integral piece of Snowy 2.0’s new tunnel boring machine’s cutterhead!

TBM Monica’s centre cutterhead piece was transported through Cooma last Wednesday night en-route to the Marica worksite north of Kiandra.

At 73 metres long, the transfer was a sight to behold as it travelled up Sharp Street bound for the final leg of its journey on the Snowy Mountains Highway.

Snowy Hydro Chief Delivery Officer – Snowy 2.0 Dave Evans said the smooth transfer was the result of months of hard work and planning.

“It’s an amazing sight to watch the huge pieces of our tunnel boring machine travel through Cooma and up to our remote Marica work site,” he said.

“It’s a credit to the project’s hard-working traffic and transport team that we’ve been able to complete this complex operation safely.”

The cutterhead – which is the main excavation tool of a TBM – is too large to move in one piece and has been split into five.

More than 140 big loads have been delivered to the Marica site from Port Kembla in recent weeks.

TBM Monica will become the project’s fourth active mega tunnelling machine, once it is assembled and commissioned in the coming months.

News

SNOWY 2.0 NAMES FOURTH TBM AFTER TUMUT STUDENT

10/09/2025

Monica’s artwork clinches Indigenous naming competition

The fourth mega tunnel boring machine on the Snowy 2.0 project will be named after a talented Tumut High School student who scooped top prize in an Indigenous art and storytelling competition.

Aspiring engineer Monica Brimmer, 15, wowed the judging panel with a stunning piece that reflected the spirit and purpose of Australia’s largest renewable energy project.

Inspired by flowing water, connected dams, mountains, energy, an underground power station and a connection to Country, Monica’s creation was awarded top marks in the competition, organised by Snowy Hydro in partnership with the Stars Foundation and Tumut High School.

Cheered on by her delighted schoolmates during a special school assembly, Monica said her artwork represented the creation of renewable energy and symbolised a “greener future in which the land and our animals are better cared for”.

“When my name was read out I felt nervous and surprised but also really proud. I had hoped to win the competition but I really didn’t expect it,” she said.

“Knowing there’s something really important to the project out there with my name, in the mountains, is really cool.

“I’ve been interested in engineering for quite a while – and it’s pretty cool to put art and engineering together as part of something I could put my mind to.”

Minister for Climate Change and Energy Chris Bowen said Snowy 2.0 is a nation-building project and it’s fitting its next tunnel boring machine will carry the name and vision of a young local student and future engineer.

“Monica’s artwork captures the spirit of clean energy and connection to Country and reflects the brighter, cleaner energy future we’re building together,” he said.

“It’s inspiring to see the next generation in Tumut leading the way on creativity for Australia’s clean energy transformation.”

Snowy Hydro Chief Delivery Officer – Snowy 2.0 Dave Evans said the winning artwork perfectly encapsulated the project’s role in underpinning Australia’s clean energy future.

“Monica’s artwork and the story behind it blew all the judges away,” he said.

“The lightbulb shines bright and displays the power that we’re going to generate for the east coast of Australia through Snowy 2.0’s huge 2200MW capacity.

“It also perfectly highlights our workforce who are almost 1 kilometre deep underground in the Snowy Mountains building one of the world’s biggest power stations.”

Tumut High School principal Brad Taylor said the calibre of entrants was “exceptional”.

“Monica is a highly academic student, and someone that we’re very proud of at the school, so I’m not surprised she’s produced such thoughtful artwork,” he said.

Stars Foundation program coordinator Nioka Marlowe said the competition showcased students’ talents and storytelling skills.

“This made clear to these young Indigenous girls that they’re important – and they’re seen – and gave them an opportunity to be on the big stage,” she said.

The TBM will shortly begin its assembly at the Marica work site, located on the Snowy Mountains Highway near Yarrangobilly Caves, ahead of tunnelling starting in late 2025.

Julie and Monica Brimmer celebrate winning the TBM4 naming competition.

News

SNOWY 2.0 POWERING OUR FUTURE-READY WORKFORCE

28/07/2025

Beyond building one of the most complex and challenging feats of engineering in the world, through its pumped hydro expansion to the iconic Snowy Scheme, Snowy 2.0 is also leaving a skills legacy.

Eight Year 12 students at Monaro High School have become the first NSW cohort to complete a school-based apprenticeship and traineeship (SBAT) program in supply chain operations, all while working on Australia’s largest renewable energy project.

The Cooma students spent one day a week gaining real-world insights and skills at the Polo Flat segment factory, serving as strong foundation for their careers.

Snowy Hydro CEO Dennis Barnes said the project would create a lasting skills legacy while securing Australia’s clean energy future.

“We are incredibly proud to empower local students by offering career-defining opportunities close to home on this once-in-a-generation project,” he said.

Monaro High School principal James Armitage said students embraced the opportunity to step into the workforce while still attending school.

“This SBAT partnership has shown how powerful it is when education and industry come together with a shared goal of supporting young people into meaningful careers,” he said.

News

FUNDING BOOST FOR ENDANGERED MACQUARIE PERCH

24/07/2025

Snowy Hydro has partnered with the NSW Department of Primary Industries and Regional Development to expand captive breeding of the endangered Macquarie perch.

Through the Snowy 2.0 Threatened Fish Management Plan, Snowy Hydro has funded the construction of eight new purpose-built aquaculture ponds at Narrandera Fisheries Centre.

This funding will allow for the reintroduction of the species into protected habitats and boost genetic diversity in locations including in the upper Murrumbidgee River below Tantangara reservoir.

Snowy Hydro CEO Dennis Barnes said Snowy Hydro was committed to environmental stewardship while building Australia’s largest renewable energy project.

“We are pleased to work collaboratively with NSW DPIRD Fisheries to carry out the associated monitoring and research that will improve the resilience of Macquarie Perch in both the catchments where Snowy 2.0 will operate and also across the state,” Mr Barnes said.

“Beyond delivering positive environmental outcomes, Snowy 2.0, with a design life of 150 years, will underpin Australia’s clean energy future by storing excess wind and solar power and delivering it to homes and businesses across the grid when it’s needed most.”

News

FOURTH TUNNEL BORING MACHINE ON WAY FOR SNOWY 2.0

07/07/2025

Green light for TBM to begin journey to Australia

Snowy Hydro is now preparing for the arrival of its fourth tunnel boring machine to join Snowy 2.0 – Australia’s largest renewable energy project.

This 178-metre long machine has been purpose-built to excavate a 5km tunnel through a complex geological area deep in the NSW Snowy Mountains, known as the long plain fault zone, that will eventually connect Tantangara reservoir with an underground power station built almost 1km underground.

The TBM has now passed factory acceptance testing at Herrenknecht’s Guangzhou factory in China, ensuring all its major systems (mechanical, electrical, control and hydraulics) are validated and the machine is ready to be shipped to Australia.

The pumped hydro expansion to the iconic Snowy Scheme, Snowy 2.0’s incredible scale and power will translate 2200MW of capacity to 350,000 MWh of energy, taking the excess electricity produced by wind and solar during the day and delivering it to provide stability to our energy grid when it’s needed most.

Snowy Hydro Chief Delivery Officer – Snowy 2.0 David Evans said the project would play a pivotal role in enabling Australia’s transition to clean energy.

“Snowy 2.0 is essentially a giant battery, providing long-duration storage for wind and solar power to complement the short-duration storage that batteries provide,” he said.

“The successful completion of factory acceptance testing is testament to months of meticulous design, rigorous testing, engineering excellence and collaboration.”

News

SNOWY 2.0 SAFETY INCIDENT

27/02/2025

Following a serious safety incident at Snowy 2.0, Snowy Hydro will seek an immediate independent safety review and audit, and will require changes to principal contractor Future Generation Joint Venture’s (FGJV) leadership on the project.

These actions follow an underground fan failing and losing part of its blade on Tuesday morning. Thankfully, no one was hurt. Underground work was stopped to allow inspection of all fans. FGJV will work with SafeWork NSW to ensure they are safe, with the aim of progressively restarting work.

Nothing is more important to Snowy Hydro than safety. Recent safety concerns at Snowy 2.0 have made it clear that as the client, our assurance role over FGJV’s activities requires this intervention.

We’re committed to working with our workforce and unions to ensure that the safety standards we expect are in place at Snowy 2.0.