Climate Change Minister Chris Bowen takes aim at Coalition for handling of Snowy 2.0 hydro project

The cost of Australia’s largest renewable energy project has now blown out to $12bn, six times the original forecast.

Mounting issues facing Snowy 2.0 hydro were hidden from the public by the former Coalition administration, according to Climate Change Minister Chris Bowen, who has reset a new timeline for the embattled scheme.

Rising construction costs and tunnelling issues have prompted the federal government to renegotiate with contractors working on the nation’s largest renewable energy project, which was originally expected to begin in 2021.

Mr Bowen said the project would now cost $12bn over six years and be vital to support Australia’s phase out of coal power.

“I want to make clear that it’s not the fault of the thousands of workers on site I’ve met and I’ve visited, they’re doing a good job in difficult circumstances, and it’s not the fault of current management,” he said.

“I will continue to focus on delivering and unlike the previous government will be open and upfront and transparent as we are today.”

Former prime minister Scott Morrison inherited the Snowy 2.0 project from Malcolm Turnbull in 2021, four years after it was first billed. Picture: NCA NewsWire/Martin Ollman

Snowy 2.0 has been pitched as a critical driver to the renewables transition and will aim to create enough clean energy to power half a million homes.

As of June, $4.3bn had been spent on the project, with 80 per cent being reinvested back into the economy, according to the federal government-owned generator.

It is expected to be fully operational in late 2028.

Announcing the new costs, the Energy Minister conceded that things could have been handled “better and much earlier”.

The project’s delay comes amid warnings of increased blackouts and a scorching Australian summer. Picture: Supplied

“This is one of the most complex engineering projects under way anywhere in the world, and it is subject to the same constraints and blowouts that all major infrastructure projects are experiencing,” Mr Bowen said.

“Whether it be Covid-19, or the supply chain constraints which are following Covid-19, there are impacts on every project around the world.”

Shadow energy spokesman Ted O’Brien responded by claiming the issues around the project arose once the Coalition government left office.