Pumped Storage Hydro

NSW government commits funds to speed pumped storage hydro deployment

NSW government commits funds to speed pumped storage hydro deployment

The government of New South Wales, Australia, is fast tracking pumped storage hydro, with nearly AUD$45 million ($30.4 million) in funding committed under the NSW Pumped Hydro Recoverable Grants Program.

The program provides recoverable grants to pumped hydro developers to help cover upfront costs and lower investment barriers for the private sector.

“Funding agreements are already in place with five applicants who have received a total of AUD$44.8 million to support pre-investment activities, establish project feasibility and develop a strategic business case,” Treasurer and Minister for Energy Matt Kean said. If these pumped hydro projects proceed to construction, they are expected to create more than 2,300 jobs and attract AUD$4.4 billion ($3 billion) of private investment, which will help grow the economy and support the regions.

Kean said the state’s renewable energy policy is intended to help replace aging coal-fired power stations and build a clean energy future. He said pumped storage hydro is a key component of the state’s renewable energy plans, providing clean, reliable power and creating infrastructure jobs.

“This is a win for NSW as these grants will be repaid to the government if a project reaches financial close, meaning that these same funds could be used to support even more projects in future,” Kean said.

NSW has a target to build at least 2 GW of new long-duration storage by 2030, and the government has committed AUD$97.5 million ($65.8 million) to accelerate pumped hydro projects that could meet that target. This includes funding for private projects as well as funding to undertake site investigations for pumped hydro potential on existing WaterNSW dams.

The grant recipients are:

  • AUD$11 million ($7.4 million) to 335 MW Lake Lyell Pumped Hydro Energy Storage, owned by EnergyAustralia Development, providing 8 hours of storage
  • AUD$9.64 million ($6.5 million) to 600 MW Oven Mountain Pumped Hydro Energy Storage, owned by Oven Mountain Pumped Hydro Energy Storage, providing 12 hours of storage
  • AUD$5.31 million ($3.6 million) to 235 MW Shoalhaven Hydro Expansion, owned by Origin Energy, providing 24 hours of storage
  • AUD$9.44 million ($6.4 million) to 325 MW Central West Pumped Hydro, owned by ATCO Australia Pumped Hydro, providing 8 hours of storage
  • AUD$9.45 million ($6.4 million) to 250 MW Muswellbrook Pumped Hydro, owned by Muswellbrook Pumped Hydro (AGL Energy and Idemitsu Australia), providing 8 hours of storage