Glacial Hydro 2.0 is turning into a $42 billion sinkhole.

April 27, 2026

The former Turnbull Coalition government initially announced the Sunny Hydro 2.0 pumped hydro scheme would cost $2 billion and be completed by 2021.

Government-owned Snowy Hydro confirmed in October 2025 that the cost of the project would easily exceed its $12 billion budget.

A nine-month cost study was commissioned by independent construction experts to determine the extent of cost overruns and delays.

Bruce Mountain, director of the Victoria Energy Policy Centre, and energy executive Ted Woodley estimate the Snowy 2.0 pumped hydro project will now cost a total of $42 billion. This includes direct construction costs of $20 billion, transmission infrastructure costs totaling $12 billion and interest charges of $8 billion over 15 years.

Glacial Hydro 2.0 is turning into a billion sinkhole.

Snowy 2.0 has always been one, Mountain and Woodley say. “terrible idea” And labeled it “One of the Greatest Disasters” In Australia’s infrastructure. He agrees that a royal commission can be justified in this project.

“Successive governments have failed to respond to a project that was clearly doomed from the start”, Dr. Mountain said.

“What has always been needed here is a properly independent investigation,” he said. he said. “I think there is a case for a Royal Commission.”

Mountain noted that Snowy Hydro 2.0 now employs 50% or about 3,000 more workers than originally budgeted, at an annual average of $250,000, with powerful unions including the CFMEU and ETU participating.

“Snow 2.0 is, and always has been, a terrible idea”. The cost, environmental damage and storage systems that cannot be recharged as fast as batteries, he said.

Concerns have also been raised that the federal government has tried to hide the true cost of Snowy 2.0 by using off-budget vehicles and blocking Freedom of Information requests.

Former ACTU president and federal Labor MP Jenny George also criticized the way the true cost of the renewable energy transition has been deliberately hidden from public scrutiny through off-budget accounting and segregation of associated costs.

“The NDIS, at least you know its value, because it’s public in all the budget papers. While a lot of it is hidden, you wouldn’t know”, said George.

“For a government committed to accountability and transparency, there is no defense to keep the public — especially the taxpayers who underwrite many of these projects — just paying the real cost to us.”

“Interests will not execute projects unless they are sure of being underwritten by the government”, he said.

The estimated cost of the 2,000 MW QLD Borumba pumped hydro project has also increased from $4.2 billion to $18.4 billion, with completion not expected until 2033 at the earliest. As with Snow Hydro 2.0, cost increases are certain.

Snowy Hydro 2.0 and Borumba are just microcosms of the astronomical costs of the renewable ‘revolution’.

Pumped hydroelectric projects do not generate net electricity. They act as storage vehicles for excess renewable energy (mostly solar) generated in the middle of the day.

Battery storage and a distributed network of solar and wind turbines with transmission lines scattered across the countryside are also very expensive.

Seasonal energy is intermittent by nature. Consequently, it is prohibitively expensive due to extensive infrastructure, transmission and storage requirements, as well as the need to have dispatchable hydrocarbon generators on standby in case of wind and solar power failure.

Australian consumers therefore face rising energy costs, both through direct and indirect taxes to subsidize renewable energy and fund projects such as Snowy Hydro 2.0.

Policymakers must stop gaslighting and be transparent about the costs and trade-offs of Australia’s renewable energy transition.