Snowy 2.0 has suffered huge cost increases and delays, but its vast storage capacity and long working life could still make it a valuable part of Australia’s renewable grid.

The final cost estimate for Snowy 2.0 has been released. The conversion of the original Snowy hydroelectric scheme to a large pumped hydro energy storage scheme will cost A$22–25 billion and will be completed in late 2029.

Much media coverage has focused on the major blowouts in cost and time. When the scheme was announced in 2017, then-prime minister Malcolm Turnbull gave a rough costing of just $2 billion – extremely low for a project this size – and said it could be finished in four years. Engineering issues, stalled tunnelling machines and surging construction costs all contributed to the blowouts.

The project has endured a remarkable amount of negative press, including from renewable energy advocates. Some of it is warranted – early cost estimates were overly optimistic. Some is debatable, such as claims it won’t work as advertised.

But let’s zoom out. Snowy 2.0 is about 80 per cent done. It will likely be finished within three years. Once up and running, it will convert the original Snowy scheme into a giant rechargeable battery, able to back up solar and wind overnight and during calm and cloudy weather. It will arrive in time to allow ageing coal plants to retire. Once up and running, it will last 150 years. $22 billion sounds like a lot – but it translates to about $5 per Australian per year of operation.

As more and more renewables enter Australia’s power grids, we will need much more energy storage. Building grid-scale batteries with........

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