CANBERRA, Oct. 23 (Xinhua) -- Australia's largest renewable energy project will cost up to 12 times more than originally forecast, a major review has found.
A reassessment of the Snowy 2.0 pumped storage power station, a major expansion of the existing Snowy Mountains hydro scheme in the east coast state of New South Wales, found that the project will cost at least 22.2 billion Australian dollars (15.6 billion U.S. dollars), with an allowance for up to 25 billion AUD (17.5 billion USD).
The federal government originally estimated in 2017 that the project would cost 2 billion AUD (1.4 billion USD) and start operating in 2021.
A 2023 review estimated that the power station would cost 12 billion AUD (8.4 billion USD) and be fully operational in late 2028.
The project is now expected to be commissioned in late 2029.
The project will connect two existing dams through a 27-km underground tunnel and a new underground pumped hydro power station.
When completed, it will be able to generate 2,200 megawatts of electricity and provide 350,000 megawatt hours of storage.
The review found that 65 percent of tunneling and 90 percent of cavern excavation for the project has been completed, with work to build the underground power station underway.
It attributed the cost blowout to the rising cost of labor and construction material and to unexpected problems drilling a key tunnel.
Minister for Climate Change and Energy Chris Bowen and Finance Minister Katy Gallagher said in a joint statement on Friday that completing the project remains the responsible course.
"Once completed, Snowy 2.0 will be an incredible national asset, supporting Australia's energy security, price stability and the transition to renewable energy," they said. ■