Snowy 2.0 pumped hydro cost estimate rises to as much as AUD 25 billion

· Energy · Australia

The principal contractor for Australia's 2.2 GW Snowy 2.0 pumped hydro storage project has again revised its expected cost, now to between AUD 22.5 billion (about $15.8 billion) and AUD 25 billion, with commissioning scheduled for 2029. The project is central to Australia's plan for storing large volumes of renewable power and balancing the grid. Each upward revision raises questions about the economics of long-duration storage megaprojects and about who ultimately bears the overrun.

Why it matters：Long-duration storage is the missing piece in most high-renewables grids, and Snowy 2.0's repeated overruns are a test case for whether pumped hydro megaprojects remain bankable.

Key points

  • The project's capacity is 2.2 GW.
  • The revised range is AUD 22.5 billion to AUD 25 billion.
  • Commissioning is scheduled for 2029.

Sources (original reporting)

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