$45 million to accelerate pumped hydro
NSW’s pumped hydro future is being fast tracked as 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, establish project feasibility and develop a strategic business case,” Mr Kean said.
“If these pumped hydro projects proceed to construction, they are expected to create more than 2,300 jobs and attract $4.4 billion of private investment, which will help grow the economy and support the regions.
“NSW has the most ambitious renewable energy policy in the nation, which is needed to replace ageing coal fired power stations and build a clean energy future for NSW.”
Mr Kean said pumped hydro is a key component of the State’s renewable energy plans, providing clean, reliable power and creating infrastructure jobs right across regional NSW.
“This is a win for NSW as these grants will be repaid to the Government if a project reaches financial close, meaning that these same funds could be used to support even more projects in future,” Mr 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, and releasing the water back down the hill through giant turbines that 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 pumped hydro projects that could meet that target. This includes funding for private projects as well as funding to undertake site investigations for pumped hydro potential on existing WaterNSW dams.
Related Articles: #Budgetandeconomy | #Energy
