When outgoing Snowy Hydro boss Paul Broad's resignation was made public on Friday, delays with the delivery of Snowy Hydro 2.0 were highlighted as the reason.
However, Mr Broad said clashes with Federal Energy Minister Chris Bowen were another reason to step aside.
"Issues have arisen obviously between what I think of the world and what Chris Bowen Minister for Energy thinks of the world and, rather than create a drama, I resigned," Mr Broad said.
"I didn't want to put the company in a position where we were seen to be fighting at every level with whatever the government may or may not want to do."
Falling out over gas plant
A gas-fired power plant being built at Kurri Kurri in the NSW Hunter Valley was at the heart of the tension.
It is due to start operating next year.
The plant is designed to provide back-up power when the state's electricity grid becomes overloaded and the larger coal fired stations phase out.
It will initially run on a combination of green hydrogen and gas.
During the election campaign, Labor announced the plant could be converted to use green hydrogen.
"While hydrogen is a wonderful opportunity, it is many, many years away from being commercial," Mr Broad said.
"To think you can have hydrogen running into Kurri Kurri when there is no hydrogen being produced in Newcastle just doesn't make any sense."
Another point of contention was Mr Broad's assertion that more gas-fired power stations needed to be built in the Hunter to bridge the gap to renewables.
"The reality is Liddell Power Station is closing, you need more gas-fired power stations, you need lots more of them," Mr Broad said.
The gas-fired plant sits in the Hunter Valley electorate of Paterson.
Paterson MP Meryl Swanson said she had spoken to Mr Bowen, seeking assurances the plant would still be built.
"The minister told me from his own mouth yesterday that it will go ahead, the plant will be happening and there will be an element of hydrogen," she said.
"Paul was really energised that hydrogen could be achieved.
"For him I think it was a matter of cost and time and that's something that whoever comes into this role is still going to have to tackle."
The ABC has contacted Chris Bowen's office for comment.
