Australia’s Queensland Hydro pushes on with 48GWh PHES despite government scrutiny

February 17, 2025
LinkedIn
Twitter
Reddit
Facebook
Email

State-owned pumped hydro energy storage (PHES) developer Queensland Hydro is set to progress the development of its 2GW/48GWh Borumba site despite state government concerns about its viability in Australia.

Revealed last week, the developer has confirmed it is inviting comments on its draft preliminary documentation, which the Commonwealth government is assessing as part of the approval process for the Borumba project’s proposed exploratory works. 

The draft documentation outlines the current environmental state, proposed exploratory activities, potential impacts, and Queensland Hydro’s strategies to avoid, minimise, or offset those impacts.

Exploratory works include surface geotechnical investigations like drilling boreholes, test-pitting, tunnelling, and necessary support to ensure workforce access and accommodate.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Local communities, business owners, and environmental groups near the Borumba project, as well as the general public, are invited to comment on the draft preliminary documentation. The comment period is currently open and will close at midday on 10 March 2025.

Natasha Patterson, Queensland Hydro’s executive general manager of communities and environment, noted the importance of community input, highlighting that the project is “ultimately better off” with input from neighbours and local communities.

“The draft documentation steps through the proposed exploratory works activities in detail and explains our approach to avoiding, minimising or offsetting any impacts. Our teams are working hard to ensure we minimise our impact on natural and cultural values and provide lasting, positive impacts for both the environment and local communities,” Patterson added.

State government scrutiny of the Borumba PHES site

When the right-wing Liberal National Party (LNP) of Queensland, led by premier David Crisafulli, won the state election in October 2024, pumped hydro soon became a target by the incoming government. This led to the cancellation of the world’s largest PHES site, the 5GW/120GWh Pioneer-Burdekin Pumped Hydro Project in November.

The government cited that the project was “not financially viable, not environmentally appropriate, and the community was never consulted”. A report found that the AU$36 billion (US$22 billion) project would have led to unnecessary additional costs for Queensland residents, with each household spending AU$15,653.

Following this, the government’s attention quickly shifted towards the Borumba site. In early December, the Queensland government said it was set for crunch talks with Queensland Hydro to “save the project”, citing that its cost had increased to AU$18 billion and had been delayed by three years.

Alongside this, the government identified that there is less than a 1% chance that the project will be completed in time for its planned first power date of 2030. Instead, it is believed the project will be completed in July 2035.  In September 2024, a flurry of major contracts for the PHES project were signed with  AFRY-Aurecon Joint Venture, Water2Wire Joint Venture, and SYSTRA.

17 March 2026
Sydney, Australia
As we move into 2026, Australia is seeing real movement in emerging as a global ‘green’ superpower, with energy storage at the heart of this. This Summit will explore in-depth the ‘exponential growth of a unique market’, providing a meeting place for investors and developers’ appetite to do business. The second edition will shine a greater spotlight on behind-the-meter developments, with the distribution network being responsible for a large capacity of total energy storage in Australia. Understanding connection issues, the urgency of transitioning to net zero, optimal financial structures, and the industry developments in 2026 and beyond.

Read Next

December 24, 2025
A jury has found in favour of Consumers Energy and DTE Energy in their case against Toshiba for “defective” work to upgrade a pumped hydro facility.
December 24, 2025
As we welcome the end of another year and greet the next, here are the top 10 most-read news stories from 2025.
December 22, 2025
Renewable energy generator and retailer Flow Power has achieved financial close on a 100MW/223MWh battery storage project in Victoria, Australia.
December 19, 2025
The Australian government has expanded the nationwide Cheaper Home Batteries Program, which has seen rapid uptake from homeowners.
December 18, 2025
New laws went into effect last week in Queensland, Australia, that mean large-scale battery storage project applications must be dealt with at the state level.