$25,000,000,000 Snowy Hydro Project

By the Editorial Team · Friday, October 23, 2026

The Snowy Hydro 2.0 project’s cost has surged to $25 billion, more than double earlier estimates, with delays and additional transmission expenses pushing the total possibly near $50 billion. Despite this, officials argue the project is vital for Australia’s energy security and job retention, though concerns linger over whether the long-term savings will offset the steep investment.

The cost of the Snowy Hydro 2.0 project has escalated sharply to $25 billion, with expected reductions in wholesale electricity prices amounting to just $7 billion over the first 45 years of operation, according to a recent cost review. The review was carried out by Snowy Hydro and the main contractor Webuild and highlights significant budget increases and delays, raising concerns among taxpayers and energy sector stakeholders.

The updated figure more than doubles the previous estimate provided two years ago and includes a projected one-year delay in the project’s completion timeline. However, this $25 billion total does not factor in the expenses associated with building and expanding the required transmission lines, which are also experiencing inflationary pressures. Snowy Hydro has indicated that constructing a high-voltage transmission line to support Snowy 2.0 could cost around $5 billion. Industry experts, however, warn that the ultimate cost for these infrastructure elements could be substantially higher.

Snowy Hydro chief executive Dennis Barnes released the findings late last week, emphasizing that the new cost estimate underwent extensive review and verification by multiple engineering and cost experts. The figure is based on Webuild’s revised estimate of $22.2 billion, submitted in June, which was followed by a thorough internal audit to ensure no underestimation had occurred. A precautionary contingency of 12% was then added, bringing the total to $25 billion.

Barnes stated that the $22.2 billion is the official target cost but justified the additional buffer due to the project’s complexity and scale, which requires flexibility to manage unforeseen issues during construction.

Energy Minister Chris Bowen defended the project’s continuation, insisting that pushing ahead remains responsible given that tunneling is now 65% complete, up from 19% at the last cost reset in 2023. He warned that abandoning Snowy 2.0 would result in the loss of approximately 5,000 jobs, undermine grid reliability, and ultimately cause higher electricity bills. Bowen described the project as a crucial asset for Australia’s energy security and predicted that it would support price stability in the long term.

Despite the cost overruns and extended timelines, government officials maintain that Snowy Hydro 2.0 will contribute to the transition to renewable energy sources and generate substantial benefits over its operational life. Still, questions remain about the growing financial burden and whether the long-term price reductions will justify the expanded investment.

Additional analysis suggests the total cost, including transmission infrastructure originally envisaged under former Prime Minister Malcolm Turnbull’s $2 billion plan, could approach $50 billion or more, further intensifying debate around the project’s economic viability. The final timeline and cost outcomes will be closely watched as construction progresses toward completion.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.