Snowy 2.0
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Snowy Hydro’s Snowy 2.0 project has been delayed by a further 12-24 months. 

Snowy 2.0’s management team are working to reset the  delivery and timeline budget with principal contractor, Future Generation Joint Venture (FGJV), as part of an ongoing project review. 

The reset will ensure this critically important clean energy infrastructure project is placed on a robust and sustainable footing for FGJV to progress the schedule in a realistic and productive manner.

Snowy Hydro expects more detail on the budget implications of the project reset around July 2023, and this will be clearly communicated with key project stakeholders. 

While significant progress has been achieved by FGJV on Snowy 2.0, there are delays to Snowy 2.0’s contracted schedule and likely cost impacts beyond the contingency allowed, which remain under review by Snowy Hydro. 

There are four broad categories of factors contributing to schedule delays and likely cost increases: 

  • The mobilisation and resourcing implications of the COVID-19 pandemic
  • The effect of global supply chain disruption and inflation impacting the cost and availability of a skilled workforce, materials, and shipping
  • A number of design elements requiring more time to complete due to their technically complex nature, with the final design now being more expensive to construct
  • The impact of variable site and geological conditions, with the most impactful being the soft ground encountered that is delaying tunnel boring machine (TBM) Florence’s progress at Tantangara

Snowy Hydro anticipates that the timeline for full commercial operation is delayed by a further 12-24 months from the current publicly released dates. The first power is due December 2027 and at the latest December 2028. Commercial operation of all units is due December 2028, at the latest  December 2029.

Snowy Hydro CEO, Dennis Barnes, said, since joining Snowy Hydro early 2023, he has focused on ensuring major projects are placed on a realistic and sustainable footing, while maintaining construction progress. 

“This project is critically important to the transition of Australia’s electricity grid and it’s crucial that we are working to a safe, efficient and realistically achievable timeframe to enable orderly planning for all our stakeholders. I am committed to being transparent about our progress and how we are proactively managing the inevitable issues and challenges that arise in a complex project like this,” Mr Barnes said.

“While many other major infrastructure projects have been impacted by the same challenges, Snowy 2.0 continues to make positive progress. 

“Snowy 2.0 is providing significant employment and economic benefits both regionally and domestically. There are currently over 2,400 people employed on the project and thousands more jobs generated indirectly through supply chains and support services. 

“TBM Kirsten has tunnelled 2.9 km to reach the underground power station cavern complex and we now have access to this site from both ends. We shortly expect to commence the 6km tailrace tunnel that will feed into Talbingo Reservoir and the excavation of intakes at Talbingo and Tantangara are proceeding very well.” 

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1 Comment
  1. Max Power 1 year ago

    So the designs weren’t fully thought through and the difficulty of the terrain wasn’t properly evaluated. Who carries the cost for these fundamental project flaws? Surely not the taxpayer?

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