Construction of the underground power station for the Snowy 2.0 hydroelectric project has commenced in the Snowy Mountains of New South Wales, Australia.
Workers have begun permanent concrete pours nearly 1km underground at the Lobs Hole site, advancing preparations to install the power station’s major components.
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More than 5,000 people are engaged on the project, which aims to increase Australia’s energy storage and reliability.
Excavation of the machine and transformer halls is more than 90% complete, and internal installation work for the power station has now begun.
Teams are installing inlet valves and spiral casings, designed to channel water to the six generators.
Snowy 2.0 has taken delivery of all six reversible turbines destined for the underground station.
The high-voltage power-generating transformers are currently undergoing final testing.
Crews are also preparing to install more than 1,400 precast concrete units that will house power‑generation equipment, including transformers weighing over 400t each.
Snowy Hydro CEO Dennis Barnes said the project had reached this stage through complex logistical planning, a focus on safety and adherence to quality assurance processes.
Barnes said: “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. This project is a testament to Australian ambition and a vital investment in our energy future.”
The pumped-hydro expansion is set to provide 2.2GW of capacity, enough to supply energy to three million homes for a week.
Snowy 2.0’s storage capability is reported to be equivalent to around 26 million home batteries, with an overall 350GWh of storage.
Once complete, the project will connect the Tantangara and Talbingo reservoirs through 27km of tunnels, enabling water transfer and power generation using six reversible turbines.
In October 2025, Snowy Hydro directed its principal contractor, Future Generation Joint Venture, to reassess construction costs.
The company is currently considering advice from independent experts regarding commercial and practical implications.
Snowy 2.0 is scheduled for completion by the end of 2028.
The project’s design life is 150 years, and it is intended to provide long-duration storage to support the integration of renewables into the grid and maintain electricity supply during periods of high demand.
