The Phoenix Pumped Hydro station received a $7 million grant from the NSW Government to advance feasibility studies.
The Phoenix Pumped Hydro Project will offer 810 MW of capacity and storage for up to 12 continuous hours of energy generation at the Burrendong Dam, close to Wellington and within the Central West Orana REZ.
Minister for Energy Matt Kean said pumped hydro would be a critical component of the future electricity supply.
“Pumped hydro acts like a giant battery for the electricity system. It works by using surplus renewable energy to pump water up a hill when it is sunny and windy, and releasing the water back down the hill through giant turbines that create electricity when it is still and dark,” Minister Kean stated.
According to the Minister, bringing grant financing and development access together will be critical in accelerating pumped hydro development, which will be required to replace our ageing coal-fired power plants.
Minister for Lands and Water Kevin Anderson said under the WaterNSW’s Renewable Energy and Storage Program, WaterNSW is looking at ways to utilise its land and assets to offer advantages for future energy security and its consumers.
Minister Anderson stated that to find potential for renewable generating and storage on WaterNSW property and assets, WaterNSW is looking to the market.
“I’m really excited by this opportunity for WaterNSW to work hand in hand with government to support the renewable energy transition and at the same time look for innovative ways to keep our customers’ bills as low as possible,” Minister Anderson added.
The NSW Pumped Hydro Recoverable Grants Program and a Development Agreement under WaterNSW’s Renewable Energy and Storage Program will support the project financially.
It is anticipated to be operational by 2030 and will play an important role in delivering dispatchable, long-term storage to enhance energy market security.
In the June Budget, the State Government pledged an additional $24 million to the Pumped Hydro Recoverable Grants Program. This money is planned to expand the pipeline of pumped hydro projects that may submit competitive bids for Long-Term Energy Service Agreements for long-duration storage.
In addition, the NSW Government will invest $23.5 million in feasibility studies to construct pumped hydro projects on critical WaterNSW assets across the state. The conclusions of these feasibility studies and the prospective prospects will be made available to the business sector in early 2023.
