Snowy Hydro raises expansion cost estimate to A$22.2 billion
Snowy Hydro allows for costs of up to A$25 billion with contingency and targets full commissioning of the Australian storage project in 2029.
Loading… Բեռնվում է…
Snowy Hydro allows for costs of up to A$25 billion with contingency and targets full commissioning of the Australian storage project in 2029.
Snowy Hydro has raised the estimated cost of its Snowy 2.0 electricity-storage expansion in Australia to at least A$22.2 billion, with contingency allowing for A$25 billion. The company now targets completion and full commissioning in 2029, according to its reassessment reported by the Guardian on 22 October.
| Estimate | Cost in Australian dollars | Delivery target |
|---|---|---|
| 2023 revision | Almost A$13 billion | Construction complete by the end of 2028 |
| October 2026 reassessment | At least A$22.2 billion; up to A$25 billion with contingency | Completion and full commissioning in 2029 |
The pumped-hydro expansion will link two existing reservoirs through tunnels up to 27 kilometres long. Its planned generating capacity is 2,200 megawatts, with storage for 350,000 megawatt-hours of energy. The first figure describes its power output; the second describes how much energy it can store.
The Guardian reported that the project is intended to absorb surplus renewable electricity when demand is low, then supply power during peak demand or prolonged periods of low wind and solar output. The delay therefore pushes back the planned arrival of a major source of stored electricity. Snowy Hydro chief executive Dennis Barnes said the project would help lower electricity prices.
The satellite operator expects access to more than twice OneWeb’s current bandwidth in return for spending in 2027–2034, with initial IRIS² services expected from 2030.
3 min
Machine tunnelling is 65% complete overall, and construction of the underground power station has begun. But the Florence tunnel-boring machine remains short of halfway through its 15-kilometre tunnel. The Guardian reported major delays after the machine became bogged and wedged in hard rock.
Snowy Hydro identified cost-estimation problems at principal contractor Future Generation Joint Venture. The Guardian also reported that the contractor missed productivity targets and fell short on cost and planning performance. More detailed technical analysis was required after approval in late 2018, while global increases in equipment, services and staffing costs exceeded early estimates.
Barnes said the original contract had many flaws and the project had stalled. He argued that the reset and a more collaborative relationship with the contractor had kept the situation from becoming worse.
The Guardian reported that another contribution from taxpayers was expected and that private financing was also possible. Neither amounts to an announced funding package. The Australian government plans to announce additional project oversight and financing arrangements in the coming weeks.
Microsoft reported $33.17 billion in Azure revenue and a 22% year-over-year decline in Windows OEM and devices revenue. Its reporting overhaul brings quarterly disclosure of Azure’s dollar contribution.
2 min
The US wireless carrier’s third-quarter service revenue rose 6% to $19.4 billion as it raised its expectations for the full year.
1 min