The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

New South Wales funds pre-investment activities in pumped hydro energy storage for Australia’s NEM

LinkedIn
Twitter
Reddit
Facebook
Email

Five large-scale pumped hydro energy storage (PHES) projects have received a funding boost worth a total AU$44.84 million (US$30.46 million) from the government of New South Wales, Australia.

State treasurer Matt Kean visited an existing pumped storage facility this morning, where the announcement was made. The money will be disbursed through the NSW government’s Pumped Hydro Recoverable Grants Program, which provides grants to developers for early-stage, pre-investment feasibility studies.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

“Thrilled to be at Bendeela Pumping & Power Station in Kangaroo Valley to announce $45 million to accelerate pumped hydro across the state,” Kean tweeted earlier today.

“It will deliver nearly 2 GW of electricity for NSW, helping deliver our citizens some of the cheapest and most reliable energy in the world.”

The scheme was launched in recognition that PHES is an effective form of long-duration energy storage (LDES) but comes with lengthy lead times comprising a complex development process expected to take about four years and then another four years for procurement and construction.

As such, required operational start dates for any projects is set for 31 December 2029, with grants recoverable on the achievement of financial close.

The state wants to use the programme to put in place a pipeline of up to 3GW of feasible PHES projects. These would bid for long-term energy service (LTES) agreements under legislation introduced last year called the Electricity Infrastructure Investment Safeguard, and projects would be sited within the NSW region of the National Electricity Market (NEM).

Projects with minimum 30MW output were eligible, offering at least eight hours’ storage duration, although the government expressed a preference for projects of >12 hours. Recipients would be expected to match or better the government funding contribution.

The five awarded projects, totaling 1.75GW are listed below, with further grant awards expected to be made in the coming months.

Project nameApplicantStage of developmentCapacity (MW)Duration (hours)
Lake Lyell PHESEnergyAustralia DevelopmentFeasibility3358
Oven Mountain PHESOMPSFeasibility60012
Shoalhaven Hydro ExpansionOrigin EnergyProcurement23524
Central West Pumped HydroATCO Australia Pumped HydroFeasibility3258
Muswellbrook Pumped Hydro Muswellbrook Pumped Hydro (AGL and Idemitsu JV)Feasibility2508

Elsewhere in Australia, the government of Queensland also said in June that it is funding feasibility studies for at least two new PHES projects, allocating AU$48 million. Queensland is also home to what will be Australia’s first new pumped hydro plant since the mid-1980s, the 250MW/2,000MWh Kidston Stage 2 Pumped Hydro plant which is currently under construction through developer Genex Power.

Read Next

June 13, 2024
Liquid air energy storage firm Highview Power has raised £300 million (US$384 million) from the UK Infrastructure Bank and utility Centrica to immediately start building its first large-scale project.
June 13, 2024
TCC Group Holdings, the majority owner of New HOrizons Ahead (NHOA), intends to increase its holding and take the company private, delisting it from the Euronext Paris exchange.  
Premium
June 12, 2024
We hear from consultancy AFRY about how energy storage can reduce market risks for CfD-winning projects in the UK, now and in future, as Ørsted launches a BESS at a major wind farm project with a CfD.
June 12, 2024
One of the world’s most widely deployed non-lithium electrochemical energy storage technologies has received an upgrade, with the launch of NGK and BASF Stationary Energy Storage’s the NAS MODEL L24.
June 10, 2024
Australia’s Clean Energy Council has signaled that Q1 2024 saw signs of recovery for the nation’s renewable energy generation sector but warned that investment levels must radically increase to achieve 2030 decarbonisation targets.

Most Popular

Email Newsletter