Fresh progress for eight-hour pumped hydro project proposed to help replace ageing coal plant

The 350 megawatt (MW), eight-hour pumped hydro energy storage plans of Australian utility EnergyAustralia and French nuclear giant EDF have taken an important step forward, with the public exhibition of the project’s Environmental Impact Statement (EIS).

The Lake Lyell pumped hydro project is proposed to help replace the nearby Mt Piper coal fired generator using, the same water body that supplies the coal plant. 

EnergyAustralia has been steadily progressing development of the project for several years now, and in mid-2025 teamed up with EDF Power Solutions Australia to realise the project.

EnergyAustralia has said it chose EDF – which runs France’s nuclear fleet and a series of pumped hydro plants that were built to provide back up to that technology – because of its experience with pumped hydro assets. It also has deep pockets and has signed up to take a majority stake in the venture.

The two companies lodged the EIS for the Lake Lyell pumped hydro station with the NSW department of planning, housing, and infrastructure (DPHI) in February, and it is now on public exhibition through to April 28.

As Renew Economy has reported, pumped hydro has proved tough to develop in Australia, particularly for private industry. The flagship Snowy 2.0 project, funded by the government-owned Snowy Hydro, has been riddled with errors, delays and a massive blow-out in costs.

NSW is desperate for long duration storage, and particularly pumped hydro to replace the coal fired power stations that are expected to exit the grid within the next decade. EnergyAustralia’s Mt Piper coal plant near Lithgow is expected to be the last.

Local community members and stakeholders can view the Lake Lyell EIS – which lays out the case for the pumped hydro project, including construction plans, technical assessment, and potential economic, environmental, and social impacts – and make a submission through to the end of the exhibition period.

The EIS also lays out the various mitigation measures that the developers are planning to take to avoid, minimise, or mitigate any potential impacts to the surrounding environment and local communities during construction and operations.

The application, environmental impact statement, and accompanying documents are on exhibition from Tuesday 31 March 2026 until Tuesday 28 April 2026 and can be viewed online here. To have your say on the project, click on ‘Make a submission’ at the top of the NSW Planning Portal page.