Developer Rye Development is partnering with Kentucky, US, utility companies Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU), on a 266MW/2,128MWh pumped hydro energy storage (PHES) project.
Located in Bell County on former coal mining land, the project, Lewis Ridge Pumped Storage, will utilise PHES technology moving water between two reservoirs at different elevations in order to store and generate electricity.
According to Rye Development, once constructed, it would be the first project of its kind in Kentucky and one of the first new pumped hydro projects built in the US in over 30 years.
The eight-hour system will generate 266MW of electricity daily. During periods of low demand, excess energy is used to pump water from the lower reservoir to the upper reservoir. When electricity demand is high, the stored water is released, passing through turbines to generate electricity.
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According to Rye, the US$1.3 billion project, which includes US$81 million from the US Department of Energy (DOE), would support an estimated 2,300 jobs during the four-year construction period and contribute about U$1.65 million annually in local tax revenue when fully operational.
In 2024, Rye was awarded an initial US$12 million of the total federal cost share award for the Lewis Ridge project. At that time, the company’s CEO Paul Jacob also noted, “We have identified additional coal mine sites in the US that are suitable for pumped storage hydropower, where insights gained from the Lewis Ridge facility can support future projects.”
The project received its preliminary permit from the Federal Energy Regulatory Commission (FERC) in 2022 and is currently pursuing its final license.
LG&E and KU are evaluating the project and if proven effective, the utilities would then file a request with the Kentucky Public Service Commission (KPSC) for authority to further advance the project. The companies claim that construction of the project could begin as early as 2027 with a commercial operation date (COD) of 2031.
Kentucky, historically reliant on coal for both power generation and economic activity, is transitioning to renewable energy more slowly than most US regions.
According to Rye, citing the Pacific Northwest Utilities Conference Committee’s (PNUCC’s) August 2024-July 2034 forecast, electricity demand in the Northwestern US is projected to grow by over 30% in the next decade, accompanied by rising residential and commercial electricity prices.
The company argues that PHES can help lower electricity costs by providing large-scale, reliable energy storage that functions even in extreme weather conditions.
While lithium-ion batteries dominate new energy storage system deployments, pumped hydro still accounts for the majority of existing global storage capacity.
Goldendale will be located on private lands at the site of a former aluminium smelter near Goldendale, Washington.
