NSW fast tracks its pumped hydro future

The New South Wales Government has awarded funding to five projects under the NSW Pumped Hydro Recoverable Grants Program.

Pumped hydro technology works like a battery for the electricity system by using surplus energy to pump water uphill when it is sunny and windy, and releasing it back downhill through turbines that generate electricity when it is still and dark.

With a combined capacity of almost 1.75 gigawatts once completed, the funded projects would bring the state close to its 2030 target of building at least 2 gigawatts of new long-duration storage.

Matt Kean, Treasurer and Minister for Energy, said 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 $44.8 million to support pre-investment activities, establish project feasibility and develop a strategic business case,” he said.

“If these pumped hydro projects proceed to construction, they are expected to create more than 2300 jobs and attract $4.4 billion of private investment.”

The funded projects include Lake Lyell Pumped Hydro Energy Storage (EnergyAustralia Development) in Lithgow, Oven Mountain Pumped Hydro Energy Storage in Wollomombi, Shoalhaven Hydro Expansion (Origin Energy) in Bowral, Central West Pumped Hydro (ATCO Australia Pumped Hydro) in Yetholme, and Muswellbrook Pumped Hydro (AGL Energy and Idemitsu Australia) in Muswellbrook.

Kean said pumped hydro is a key component of the state’s renewable energy plans, providing clean, reliable power and creating infrastructure jobs right across regional New South Wales.

“This is a win for New South Wales 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 the future,” he said.

For more information, visit: www.energy.nsw.gov.au