Eric World essay
One billion here, one billion there, you will soon be talking about real money.
Snowy Hydro 2.0 indicates another cost explosion with a price of 12 billion dollars that is now considered unattainable
The pumping hydroelectric project in the Kosciuszko National Park is complete at 67%, but the cost increases in the supply chain and the problems with a borer have caused an extra cost
Tom Mcilroy Political editor: Friday, October 3, 2025, 12:24 aest
Snowy Hydro is preparing for another significant extra cost in the huge Snowy 2.0 project in Kosciuszko National Park, with a line reevaluation per line ordered to contractors on Friday.
The gigantic pumping hydroelectric project, first promoted by The Turnbull government in 2017 It cost 2,000 million dollars, it was subsequently checked at 5,900 million dollars. The construction, which will amount to almost 13,000 million dollars in 2023, should be completed at the end of 2028.
Snowy Hydro executive director Dennis Barnes said that the last cost evaluation was considered necessary due to the important price increases in the supply chain, even related to an underground power plant, as well as delays at stops in 2024 with an important tunnelador. He said that the cost of adding a fourth drilling machine could not be covered with the most recent project price.
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“We have gradually noticed, and then quickly, that we are not going to achieve the schedule with an objective cost of 12 billion dollars,” Barnes said.
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Even if the project is completed, it will not help the green energy to be economical.
The Snowy 2 project will be a disappointment, even if completed and works as expected. The 2017 original viability study estimated Electricity losses on the round trip are at least 33%.even without transmission losses, adding 1/0.67 = 49% to the cost of the already expensive renewable energy. Since the objective of Snowy 2, among other things, is to change solar energy production time, this renewable energy, 49% more expensive, will be loaded into the bills of maximum demand for common households.
And let’s not forget that this viability study also gave us an estimate of costs between 3,800 and 4,500 million dollars. If the 2017 energy efficiency estimates are as unstable as cost estimates of 2017, the 49% increase in the cost of renewable energy pumped through the hydroelectric plan could be a substation.
And above all this, the cost of capital and the cost of maintenance of the project, which amounts to more than 12 billion dollars, will be paid by taxpayers in one way or another, either hidden in tax receipts or accumulated in energy invoices.
Snowy 2 is the febrile dream of desperate people for making their uninquerble dreams Net Zero, but in practice it is resulting as useless as any other attempt to make the renewable energy work.
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