Initial plans for a power station at the location were discussed in 1966. The original cost of the project was around $2 billion. The study was released on 21 December 2017 and found the project cost would be between $3.8 and 4.5 billion. The first tunnel, completed by October 2022, was a 2.85-kilometre section that provided main access at Lobs Hole. It was 10 metres in diameter and provides pedestrian and vehicle access into the power station. It is 2.93 kilometres long, 10 metres in diameter, and will be used for power station ventilation and high-voltage cables. By February 2024, half of the construction required was complete. It was originally expected to be completed by 2024. Snowy Hydro 2.0 has been beset by delays and cost blowouts. The project is currently expected to be generating power as early as late 2027 and to be fully operational by the end of 2028. The project is using three
tunnel boring machines to dig tunnels. Eight weeks later the machine was bogged in wet, soft ground. The machine is capable of digging 30 to 50 metres a day. In December 2022, a
sinkhole opened up above the tunnel. A complex
fault zone caused the delay. By 11 July Florence was clear of the hard rock after using ultra-high-pressure
water jetting. A fourth boring machine was required due to the delays caused by Florence.
Drilling and blasting was used to dig caverns. The company managing underground blasting operations was
Orica.
Rock bolts and
shotcrete support the exposed solid rock face. In early 2025, tunnelling work was halted due to safety concerns. In October 2025, the scheme was reported to be 67% complete but it could not be completed within the A$12billion forecast cost. ==Design and location==