The first pumped hydro energy storage (PHES) system in Australia in 37 years is set to begin construction after the project reached financial close.
The A$777 million (£427m) Kidston Pumped Storage Hydro Project (K2-Hydro) will be the first pumped hydro plant to be built in the country since 1984 and the first to be used specifically to support the integration of variable renewable energy generation from solar and wind.
The facility, located at the former Kidston Gold Mine at the Kidston Clean Energy Hub in North Queensland, will produce around 250MW of baseload power – equivalent to eight hours of energy storage, according to Genex Power.
The Kidston Clean Energy Hub will integrate large-scale solar and pumped storage hydro using the abandoned gold mine 270 kilometres north-west of Townsville.
Water pumped into its reservoir will store approximately 2000MWh worth of dispatchable electricity that can be delivered back to the electricity market when needed.
A transmission line of 187 kilometres, supported by the Queensland Government and Genex, will be required to connect the Kidston Renewable Energy Hub to the National Electricity Market (NEM).
Genex expects the project, scheduled for completion by 2024, will create 500 construction jobs and a further 20 ongoing operation roles.
The Queensland Government has agreed to provide A$147 million (£80.8m) of funding for the project.
Treasurer and Minister for Investment Cameron Dick said: “As part of our Economic Recovery Strategy to grow the renewable energy sector and the jobs that come with it, the Palaszczuk Government has played a crucial role in getting the Kidston Pumped Storage Hydro Project over the line.
“This decision will further secure our strong renewables future in North Queensland and will unlock hundreds of renewables jobs. Beyond Kidston, the transmission infrastructure we are delivering has the potential to leverage hundreds of millions of dollars’ worth of new renewable investment in the North.
“As a government we are focused on driving investment, creating jobs and growth and lowering electricity prices for Queensland households and businesses.”
