Major Australian energy generator-retailer EnergyAustralia has partnered with EDF Power Solutions Australia to deliver a 3GWh pumped hydro energy storage (PHES) system in New South Wales.
The strategic partnership will support the development of the Lake Lyell PHES site in Lithgow, a city in the Central Tablelands region of the state. The size of the 8-hour duration PHES project will be 385MW/3,080MWh. The project is expected to operate for up to 80 years.
The Lake Lyell PHES project was designated a Critical State Significant Infrastructure (CSSI) by the New South Wales government last year for economic, social, and environmental reasons.
EnergyAustralia and EDF have formed a joint venture to support the project’s ongoing development. Together, they own 100% of the project, with EDF Power Solutions Australia holding a 75% equity interest. EnergyAustralia will retain the primary rights to the power offtake for the PHES site.
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The companies confirmed they are working towards the project’s Environmental Impact Statement submission in 2025, with a Final Investment Decision (FID) targeted for late 2026.
Construction is anticipated to begin in late 2026 to 2030, and operations will begin in the same year. By connecting to the National Electricity Market (NEM), the project will contribute to the state’s decarbonisation targets.
Mark Collette, managing director of EnergyAustralia, believes the joint venture will pool international expertise to ensure the PHES project is delivered promptly.
“We recognise pumped hydro requires unique expertise to ensure it is developed and delivered efficiently, while considering the best interests of the local community and the wider state of New South Wales. This partnership will enable both EnergyAustralia and EDF Australia to lend their expertise to the continued development of this important project,” Collette said.
The Lake Lyell PHES site will use water sourced from the nearby lake, leverage existing transmission infrastructure, and see the development of a purpose-built reservoir behind the southern ridge of Mount Walker.
An underground waterway will connect the upper reservoir, which stores energy, to a powerhouse located approximately 170 meters below ground level. This powerhouse will contain two pump-turbine units.
These reversible generating units will be able to either store energy by pumping water back up to the upper reservoir or generate energy by releasing water down to Lake Lyell.
Electricity will be transmitted from the powerhouse through buried cables to the 330kV switchyard located at the lake’s edge. The switchyard will be connected to the existing 330kV transmission lines.
The powerhouse’s outlet will connect to the lower reservoir via the tail waterway, which will flow into an inlet/outlet structure at the edge of Lake Lyell in Farmers Creek.
