The NSW Government will allocate $44.8 million towards five new pumped hydro projects across the state, including a $9.45 million development in the Upper Hunter.
If completed, the approved ventures – in Lithgow, Yetholme, Wollomombi, Bowral and Muswellbrook – would provide a combined capacity of 1.75 gigawatts.
“NSW has the most ambitious renewable energy policy in the nation, which is needed to replace ageing coal-fired power stations and build a clean energy future for NSW,” Treasurer and Minister for Energy Matt Kean said.
“The five projects will receive $44.8 million to fund pre-investment work such as feasibility studies.
“And, if they proceed to construction, they’ll create more than 2,300 jobs and attract $4.4 billion of private investment.”
The NSW Government announcement comes about a week after the Australian Electricity Market Operator (AEMO) released its latest Electricity Statement of Opportunities.
That report turned up the heat on all levels of government to deliver renewable energy and transmission projects as fast as possible to maintain a reliable electricity supply.
Pumped Hydro Energy Storage (PHES) constitutes more than 94% of electricity storage worldwide.
Business Hunter CEO Bob Hawes and Climate Action Newcastle’s Ian Wilcox were among those who welcomed the news.
“The need for more renewable energy is evident,” the former said.
“But, it’s critically important for government to support the fossil fuel industry worker transition, too.”
In a joint venture, AGL and Idemitsu Australia (Idemitsu) have signed an agreement with the Energy Corporation of NSW to build on feasibility work already undertaken for the proposed Muswellbrook Pumped Hydro Project, which is expected to provide eight hours of energy storage.
Having worked closely with Muswellbrook Shire Council to identify the option, a preliminary engineering study began in 2019.
Pumped hydro works by circulating water from the lower reservoir into an upper storage site, with the Muswellbrook scheme exploring an innovative model whereby an existing mine void from Idemitsu’s Muswellbrook Coal acts as the lower reservoir.
Upon demand, water is released from the upper storage site and uses gravity to turn turbines and generate electricity.
The $9.45 million will be used to complete a targeted geotechnical due diligence program, detailed design of the project, connection studies and contractor engagement.
A comprehensive Traditional Owner and community consultation process will take place as well.
AGL chief operating officer Markus Brokhof hailed the support of the NSW Government.
“We’re pleased to see the project progressing to the next stage,” he said.
“[Today] we’re announcing another step forward in planning for what could be a significant energy asset for the people of Australia and the Upper Hunter community.
“As we transition to more renewable energy sources, pumped hydro provides a reliable on-demand generation source and acceleration of our development studies will help us understand how the project could be delivered.
“AGL has 2.9GW of wind, battery, pumped hydro and other low carbon and firming projects in active planning and development.
“We will continue to look to invest in projects like Muswellbrook Pumped Hydro.”
