The Kidston pumped hydro project in Queensland has been quietly registered in the Australian Energy Market Operator’s management system, becoming the first to join Australia’s main electricity grid in 40 years.
The milestone was reached on November 18, and will enable at least the first of the two Kidston 125 megawatt pumps and generators to be energised and then kick off what could be a lengthy but significant commissioning process.
Kidston is located in a disused open pit gold mine some 285 kms west of Townsville in the north of Queensland, and while it has largely dodged the huge cost blowouts that have afflicted the much larger Snowy 2.0 pumped hydro project, it has suffered some delays.
According to Geoff Eldridge, from GPE NEMLog, which noted the milestone, only one unit has entered AEMO’s market management system so far.
Once complete, the facility will boast 250 MW of capacity and eight hours of storage, adding much needed long duration storage to the region and becoming the centre of an energy hub that will feature an already completed solar farm and a large wind and battery facility.
The 50 MW solar farm will be joined by a 120 MW wind farm and a 150 MW/600 MWh battery storage system, and the company has been on a road trip in recent months consulting with local communities over the wind and battery proposal.
The Kidston facility is owned by Genex Power, itself now fully owned by its joint venture partner, the Japanese giant J-Power. It considered going “merchant” at first, but ended up by selling full dispatch rights, for 30 years, to the big three “gentailer” EnergyAustralia, along with an option to buy the asset.
Pumped hydro has been seen by many as an essential part of the country’s transition to a grid dominated by wind and solar, but the soaring costs of civil construction, the disastrous delays and cost overruns of Snowy’s project, and the plunging cost of battery storage has meant few projects have got over the line.
Several are still hopeful of development, and one has now won underwriting agreements with state governments, Acen Australia’s Phoenix pumped hydro storage project in NSW.
AGL is pursuing three pumped hydro projects, including one at Muswellbrook in the Hunter Valley and the two Upper Hunter projects at Glenbawn and Glennies Creek that it bought from a company owned by former prime minister Malcom Turnbull.
Craig Francis, the CEO of Genex, confirmed to Renew Economy that registration of the first unit had indeed been completed, and energisation is scheduled early next month with the state transmission company Powerlink.
“The notice you will have seen is completion of our registration. Commissioning of the plant will be commencing mid next year,” he said.
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