Snowy 2.0 Hits 70% Complete — But What Does It Mean for Your Electricity Bill?

What is Snowy 2.0?

Snowy 2.0 is a major expansion of the existing Snowy Mountains Hydroelectric Scheme — one of Australia's largest and most iconic pieces of infrastructure. When complete, it will add 2,200 MW of generation capacity and 350,000 MWh of large-scale energy storage to the National Electricity Market. (Source: Department of Climate Change, Energy, the Environment and Water)

The project works like a giant rechargeable battery. When electricity supply is high — for example, during a sunny afternoon when solar panels across the grid are producing excess power — water is pumped uphill from the lower Talbingo Reservoir to the upper Tantangara Reservoir. When demand spikes, such as on a cold winter evening, the water is released back downhill through turbines to generate electricity on demand.

The underground power station is being built 800 metres below the surface in Kosciuszko National Park, NSW. The project was originally announced in 2017 with a $2 billion budget and a 2021 completion target. The estimated cost has since grown to over $12 billion, with full commercial operation now targeted for December 2028.

Think of Snowy 2.0 as a giant battery for the electricity grid — it stores energy when there's too much (like on a sunny afternoon when solar is producing excess power) and releases it when there's not enough (like on a cold winter evening when demand peaks).

What's the latest milestone?

Construction on Snowy 2.0 is now more than 70% complete, as of February 2026. (Source: Snowy Hydro / Future Generation Joint Venture)

A fourth tunnel boring machine, named Monica — after Tumut High School student Monica Brimmer, winner of a First Nations art and storytelling competition — has been commissioned and powered up. Monica joins the existing TBM fleet of Florence, Lady Eileen Hudson, and Kirsten. Together, the four machines are excavating the project's 17-kilometre headrace tunnel, the main conduit connecting Tantangara Reservoir to the underground power station. (Source: pv magazine Australia)

The transition tunnel crown at the Tantangara intake has also been completed — a key structural component of the upstream infrastructure. At the Lobs Hole worksite, focus is now shifting from tunnelling to fitting out the underground power station itself.

Full commercial operation remains targeted for December 2028.

What does Snowy 2.0 mean for electricity prices?

This is the question most Australians want answered — and the honest answer is that it's complicated. Here's what we know.

The case for lower prices

More renewable firming capacity means the grid can absorb more solar and wind generation without instability. That matters because curtailment — where renewable generators are told to switch off because the grid can't handle the supply — is already a growing issue.

Snowy 2.0 can also dispatch power quickly at times of peak demand. Currently, when demand exceeds supply, gas peaker plants fill the gap — at significantly higher cost. By displacing some of that gas generation, Snowy 2.0 could reduce the wholesale price spikes that ultimately flow through to consumer bills.

The federal government projects the project will put downward pressure on electricity prices in the long run. One analysis estimates the cost at roughly one cent per day per Australian over the project's expected 150-year operational lifetime. (Source: The Conversation)

The complication

The project cost has blown out from $2 billion to over $12 billion. Those costs are ultimately recovered through electricity prices, either directly via higher wholesale costs or indirectly via government financing.

Some independent analysis has suggested wholesale electricity spot prices could actually be higher with Snowy 2.0 than without it in some years post-2033, depending on how the broader energy mix evolves. The project's economic case rests on assumptions about coal plant closures, renewable energy build rates, and gas prices that may or may not play out as forecast.

And critically, Snowy 2.0 won't be fully operational until late 2028 at the earliest. Electricity prices between now and then are driven by entirely different factors — retail competition, network charges, wholesale market conditions, and government policy.

The bottom line for consumers

Snowy 2.0 is a long-term infrastructure investment. Its benefits will take years to materialise and are tied to the broader grid transition from coal to renewables. Whether it ultimately delivers lower bills depends on factors well beyond the project itself.

In the near term (2026–2028), electricity prices are shaped by the retail market — which plans you're on, which energy retailer you're with, and whether your plan reflects current market conditions. The best thing you can do right now is make sure you're on a competitive plan, not a default market offer.

What about the Federal Budget energy cuts?

The May 2026 Federal Budget cut almost $2 billion from clean energy programmes. While Snowy 2.0's own funding is not directly affected — it is funded through Snowy Hydro, a government-owned corporation — the cuts could affect the broader pipeline of renewable energy projects that Snowy 2.0 is designed to complement.

Solar farms, wind projects, and battery storage installations that the grid will need alongside Snowy 2.0 may face reduced support. The long-term impact on electricity prices is uncertain, but reduced investment in renewables could slow the energy transition and maintain reliance on more expensive gas generation for longer.

The detail is still emerging, and it's worth watching how state governments and the private sector respond to the federal funding changes over the coming months.

What can you do about your electricity bill right now?

Snowy 2.0 won't affect your electricity bill until at least 2028–2029. In the meantime, the single most effective thing you can do is compare your current plan against what's available in your area.

Many Australians are still on default market offers — which are often significantly more expensive than the best available market offers for the same address. The difference can be hundreds of dollars a year, particularly for households in NSW, Victoria, and South Australia.

Switching energy retailers takes minutes and there's no interruption to supply. Your electricity is delivered through the same network regardless of which retailer you're with — only the billing relationship changes.

You can check current average electricity bills by state on our Australian Electricity Price Index to see how your bill compares to the average in your area.

Key facts about Snowy 2.0

Snowy 2.0 and your electricity bill: the takeaway

Snowy 2.0 is a genuinely significant piece of infrastructure for Australia's energy future — but its impact on household bills is years away. The project is more than 70% complete and on track for late 2028, and it could play an important role in stabilising electricity prices as the grid transitions away from coal.

In the meantime, the most practical thing you can do is make sure you're not paying more than you need to on your current plan. With electricity costs up 25% in the past year (Source: ABS Consumer Price Index, March 2026), the difference between a default market offer and a competitive market offer can be hundreds of dollars annually.

If you're in NSW, start by comparing electricity plans in NSW to see what's available at your address.

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