“State Fast-Tracks Two Vital Pumped Hydro Energy Storage Projects”
New South Wales is propelling two significant pumped hydro energy storage projects forward as a part of its clean energy strategy. The NSW Labor government has declared these projects as Critical State Significant Infrastructure (CSSI), aiming to boost the state’s renewable energy capacity.
Overview of the Pumped Hydro Projects
The two projects are:
- Western Sydney Pumped Hydro Project – Developed by Zen Energy with a budget of $3.5 billion.
- Phoenix Pumped Hydro Project – Developed by Acen Australia estimated at $3.6 billion.
Key Features and Specifications
Both initiatives are prioritised for their capacity to bolster long-duration energy storage as NSW transitions away from coal.
- The Western Sydney Pumped Hydro Project will offer 1 gigawatt (GW) of generation capacity and up to 16 hours of storage. It will utilize mainly underground tunnels to pump water from Lake Burragorang to a reservoir created from an old coal washing pit.
- The Phoenix Pumped Hydro Project is set to have 810 megawatts (MW) of capacity and a nominal duration of 12 hours. It will be located near Lake Burrendong in the Central West Orana renewable energy zone.
Government Support and Planning Process
NSW Energy Minister Penny Sharpe confirmed the projects would receive a streamlined assessment process due to their critical nature for both the environment and energy transition efforts. This process will include public exhibitions and opportunities for community input.
Connecting Future Energy Needs
These projects are expected to help stabilize the electricity grid and enhance energy reliability during peak demand. Long-duration pumped hydro storage is integral to developing a modern energy system that adequately supports households and businesses across NSW.
NSW’s Renewable Energy Goals
The announcement follows an earlier tender where big battery projects with over 10 hours of storage were awarded contracts. This includes the largest battery project to date, a 300 MW installation by Neoen Australia near the former Wallerawang coal-fired power station.
Long-term Storage Targets
NSW aims to achieve a long-duration storage capacity of 2 GW and 16 GWh by 2030, increasing to 42 GWh by 2034. Further tenders for an additional 12 GWh of storage will be launched soon. As the demand for renewable energy rises, the state’s transition from coal must be supported by ample pumped hydro and storage solutions.
Project Timelines and Market Impact
Zen Energy anticipates construction of the Western Sydney project could commence in 2027 and be operational by 2031. Meanwhile, Acen Australia plans to submit the Environmental Impact Statement for the Phoenix project later this year.
These pumped hydro initiatives not only highlight NSW’s commitment to renewable energy but also address the critical need to replace aging coal-fired power generation. As the state integrates these projects into its energy infrastructure, the transition towards a cleaner energy economy is set to gain momentum.
