The Central West pumped hydro proposal.
The New South Wales government has revealed that it has received an “overwhelming” 11GW of pumped hydro project proposals in response to call for storage options to help in its “renewable energy revolution.”
State treasurer and energy minister Matt Kean says 28 different sites have been put forward for potential pumped hydro projects, in response to the government’s offer of a modest $50 million of grant money under its Pumped Hydro Recoverable Grants Program.
The 11GW of project proposals is more than five times the estimated 2GW the government needs to support more than 10GW of wind and solar projects that are being sought by 2030 in its planned renewable energy zones.
The success of the pumped hydro ROI follows similarly overwhelming responses that saw 34GW of wind, solar and storage proposed for the 8GW New England renewable energy zone, and 27GW put forward for the 3GW Central West Orana renewable energy zone.
“Time and time again we see energy investors flocking to NSW to drive a renewable energy revolution,” Kean said in a statement.
“We know that the cheapest and most reliable form of energy right now is solar and wind backed up by dispatchable power like pumped hydro and batteries.”
NSW is planning for the shutdown of at least three of its five remaining coal generators over the next decade, and has not ruled out the closure of the fifth. Liddell will be the first to close, followed by Vales Point and Eraring.
It promises to be the most dramatic flip from a coal-based grid to one dominated by wind and solar. Even the federal government has dialled into its emissions assumptions a switch in NSW from a 70 per cent share for coal in the past 12 months to one with 84 per cent renewables by 2030.
“Pumped hydro is a key aspect of our Electricity Infrastructure Roadmap and will help to provide the families and businesses of NSW access to some of the cheapest electricity anywhere on the planet,” Kean said.
“Pumped hydro acts like a giant battery, storing excess wind and solar power that can be quickly fed into the grid when we need it. This type of energy storage will create stability and reliability in the electricity system.”
According to the government, the average capacity of the pumped hydro applications is almost 400MW and an average duration of 12.6 hours.
It says these will “make sure we keep the lights on when it is still and dark.”
NSW currently has two pumped hydro projects in operation – at Shoalhaven and at Tumut, and construction has begun on the massive 2GW Snowy 2.0 pumped hydro project by the federal government owned Snowy Hydro.
Other projects put forward are Oven Mountain (Alinta), Bells Mountain (AGL), Lake Lyell (EnergyAustralia), and in the Central West, New England, and at Lake Dungowan.
The NSW Government will assess the applications to award the $50 million in recoverable grants over the coming months. Pumped hydro projects will also be invited to bid in the upcoming auctions planned under the Electricity Infrastructure Roadmap. The first will be in the Central West Zone.
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