NSW’s pumped hydro future has been fast-tracked. Five projects, with a combined capacity of almost 1.75 gigawatts (GW), have been awarded funding under the NSW Pumped Hydro Recoverable Grants Program.
Treasurer and Minister for Energy Matt Kean 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. They will also establish project feasibility and develop a strategic business case,” Mr Kean said.
“These projects should create more than 2,300 jobs if they proceed to construction. They will also attract $4.4 billion of private investment. That will help grow the economy and support the regions.
“NSW has the most ambitious renewable energy policy in the nation. It is needed to replace ageing coal-fired power stations. These projects will help build a clean energy future for NSW.”
Positive future for pumped hydro
Kean said pumped hydro is a key component of the State’s renewable energy plans. It will provide clean, reliable power and create infrastructure jobs across regional NSW.
“This is a win for NSW as these grants will be repaid if a project reaches financial close. These same funds could be used to support even more projects in future,” Kean said.
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. That water is released down the hill through giant turbines. The turbines create electricity when it is still and dark.
NSW has a target to build at least 2GW of new long-duration storage by 2030, and the Government has committed $97.5 million to accelerate these projects that could meet that target. This includes funding for private undertakings and funding to undertake site investigations for pumped hydro potential on existing WaterNSW dams.