Contract/projects

Construction of Snowy 2.0 underground power station commences

Snowy 2.0 underground power station

Construction of Snowy 2.0’s underground power station has begun, marking a new phase of the Australian pumped storage hydro project.

A hydroelectric station the size of the Sydney Opera House is being built almost one kilometre underground and construction teams have begun permanent concrete pouring, setting the stage to assemble the project’s six turbines.

With excavation in the massive machine and transformer halls over 90% complete, engineering teams are preparing for the internal fit-out of the power station. This includes the installation of major components, including inlet valves and spiral casings designed to channel water that will fuel the generators.

Excavation is complete for the six connector tunnels between the transformer hall and machine hall. They will house electrical equipment to channel power from the six generators to high-voltage transformers and on to consumers.

Over the coming months, construction crews will install the first of more than 1,400 pieces of precast concrete that will house the power-generating kit, including transformers weighing more than 400 tonnes each.

Snowy 2.0 has also taken delivery of all six reversible turbines, while the project’s power-generating high-voltage transformers are currently undergoing final testing.

Snowy Hydro CEO Dennis Barnes said reaching this stage required an extraordinary level of logistical co-ordination, safety focus and strict quality assurance.

“Fit-out in our underground powerhouses is an extremely precise and detail-oriented process,” he said.

“We’re building some of the widest and deepest power station caverns in the world. Transitioning into the fit-out phase of an underground station the size of the Sydney Opera House is a landmark engineering achievement that we’re all extremely proud of.

“The skill of the workforce behind Snowy 2.0 is incredible. From the army of skilled local talent to top hydropower experts from across the globe.”

In October 2025, Snowy Hydro announced it had instructed Snowy 2.0’s principal contractor Future Generation Joint Venture to undertake a cost reassessment.

After receiving advice from independent construction cost experts, Snowy Hydro is considering the commercial and practical implications to inform its advice to the government.

In May this year, excavation of Snowy 2.0’s 6km tailrace tunnel was completed.

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