Australia's Snowy 2.0 Cost Blows Out to $25 Billion — Twelve Times the Original Budget

A major independent review of Australia's Snowy 2.0 pumped-hydro project, published on or around October 23, 2026, concluded that the scheme's total cost could reach $25 billion — approximately twelve times the $2 billion estimate given when the project was announced. Snowy 2.0, located in the Snowy Mountains of New South Wales, is designed to add 2,000 megawatts of long-duration electricity storage capacity to Australia's grid, helping balance the intermittency of renewable energy sources such as wind and solar. The project involves boring a 27-kilometre tunnel through the mountains to connect two existing reservoirs. The review found not only severe cost overruns but also additional schedule delays beyond those already disclosed. The project is majority owned by the Australian federal government through Snowy Hydro Limited. The announcement intensified political debate about the viability of large public-sector energy infrastructure projects and their role in Australia's transition to a low-carbon electricity system. Critics pointed to the blowout as a cautionary tale for governments worldwide committing to expensive long-duration storage schemes, while proponents argued the strategic value of the storage capacity justifies the revised cost.