The New South Wales government has backed three new long-duration energy storage projects, including the first pumped storage hydro project selected under its Electricity Infrastructure Roadmap. The projects are expected to improve energy reliability and affordability while supporting the transition to renewable power.
The ACEN Phoenix Pumped Hydro Energy Storage project, located near Lake Burrendong, was awarded a Long Duration Storage Agreement (LTESA), marking a significant milestone in the state’s efforts to replace retiring coal-fired power plants. The project will provide 800MW of power with a storage capacity of 11,990MWh, offering up to 15 hours of stored energy.
In addition to the Phoenix project, the NSW government has also selected two large-scale battery projects: the Stoney Creek Battery Energy Storage System (BESS) in Narrabri and the Griffith BESS in Yoogali. These lithium-ion battery systems will provide 125MW/1,000MWh and 100MW/800MWh of storage capacity, respectively, ensuring at least 8 hours of continuous energy dispatch. These projects contribute to strengthening the grid’s stability and enhancing energy availability across NSW.
When fully charged, the one gigawatt of new long-duration storage across all selected projects will be capable of powering over 500,000 homes for a full day, ensuring energy availability even when solar and wind output is low. The Phoenix Pumped Hydro project alone will play a crucial role in maintaining grid stability.
ACEN Australia welcomed the government’s support, emphasizing that the LTESA framework helps manage financial risks associated with large-scale energy projects. The company has committed to significant investments in community initiatives, regional job creation, and Indigenous participation.
“Large-scale pumped hydro projects will help deliver positive outcomes for electricity market consumers in terms of reliable, renewable, and affordable electricity,” ACEN Australia stated. “We commend the government for its commitment to delivering better value to both NSW electricity consumers and project proponents.”
The state’s Energy Minister, Penny Sharpe, reinforced the importance of such initiatives, stating, “These new projects will drive local and regional economies with jobs and investment while also delivering a reliable energy system for the whole of NSW.”
The NSW government has now secured 40% of its 2030 long-duration storage target and more than 65% of its 2034 goal. The Phoenix Pumped Hydro project is scheduled to be operational by 2031.
