A 12GWh pumped hydro project and a 1,200MWh battery energy storage system in New South Wales (NSW) have been submitted to Australia’s Environment Protection and Biodiversity Conservation (EPBC) Act.
The Phoenix Pumped Hydro Energy Storage Project, which is being pursued by renewables developer ACEN Australia, is located approximately 35km west of Mudgee in NSW’s Central-West Orana Renewable Energy Zone (REZ). It is designed to provide up to 12 hours of storage with a total capacity of 11,990MWh.
Meanwhile, Spanish sustainable energy developer X-Elio is proposing the 300MW/1,200MWh Willavale Park BESS, which is located 22km southwest of Goulburn and strategically positioned alongside the Hume Highway.
The environmental review process for both projects will assess potential impacts on protected matters under the EPBC Act, including threatened species, ecological communities and water resources.
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Phoenix pumped hydro site targets 12-hour duration storage
ACEN Australia’s 11,990MWh Phoenix Pumped Hydro Energy Storage Project has entered the referral decision phase under the EPBC Act.
This development comes after ACEN received a boost in February 2025 when AEMO Services, acting as the NSW Consumer Trustee, awarded the project a Long-Term Energy Service Agreement (LTESA) as part of its fifth tender round, which saw 14GWh of long-duration energy storage (LDES) secured.
The project had previously secured AU$7 million (US$4.62 million) from the NSW government’s Pumped Hydro Recoverable Grants Program in December 2022 to complete feasibility studies.
According to the environmental referral documents, the Phoenix facility will feature purpose-built upper and lower storage reservoirs connected by a tunnel to a powerhouse containing pump-turbine units.
Each reservoir will have a surface area of approximately 50 hectares and a capacity of up to 20,000ML of water. The upper reservoir will be positioned 350m higher than the lower reservoir, creating the elevation differential necessary for efficient pumped hydro operation.
The project represents a major addition to Australia’s growing portfolio of long-duration energy storage assets, which are becoming increasingly crucial as the country accelerates its transition to renewable energy.
The Australian Energy Market Operator (AEMO) has identified a substantial need for dispatchable capacity as coal plants retire across the National Electricity Market (NEM).
This development follows a pattern of increasing investment in pumped hydro across Australia.
The federal government has committed substantial funding to the Snowy 2.0 pumped hydro expansion, while Tasmania’s ‘Battery of the Nation’ initiative continues to progress multiple pumped hydro opportunities.
Last week, the Clean Energy Finance Corporation (CEFC) committed a record AU$3.8 billion to the Marinus Link, a 1,500MW interconnector between Victoria and Tasmania, marking a milestone in the development of the ‘Battery of the Nation’ initiative in Tasmania.
X-Elio’s Willavale Park BESS enters EPBC Act
In parallel, X-Elio’s Willavale Park BESS has also advanced through the environmental approval process, with the project now open for public comment under the EPBC Act referral system.
The 300MW/1,200MWh battery project, located approximately 22km southwest of Goulburn in NSW, will provide 4-hours of storage duration.
The project represents part of X-Elio’s growing portfolio of battery storage assets in Australia. The Spanish renewable energy developer is also advancing plans for the nearby 300MW/1,200MWh Canyonleigh BESS.
According to referral documents, X-Elio began community and stakeholder engagement on the Willavale Park BESS in June 2024, including communication with local government, landowners, project neighbours, and the broader community.
The project will connect to the existing transmission network and is strategically positioned alongside the Hume Highway.
Both projects will contribute to NSW’s growing energy storage capacity, which is becoming increasingly important as the state works toward its renewable energy targets.
The NSW government’s Electricity Infrastructure Roadmap aims to deliver 12GW of renewable energy and 2GW of storage by 2030, with both the Phoenix PHES and Willavale Park BESS contributing to these goals.
It should also be noted that the NSW government recently increased its LDES target to 42GWh by 2034 earlier this year.
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