AGL has acquired 100 per cent ownership of two Upper Hunter pumped hydro projects, with a combined capacity of 1393MW.
Previously held by Upper Hunter Hydro Top Trust and its trustee (UHH), the two early-stage projects are located at Glenbawn and Glennies Creek in the Hunter region of New South Wales and, on the current designs, plan to provide 770 MW ten-hour and 623 MW ten-hour pumped hydro energy storage capacity respectively with the future opportunity for integrated wind farms.
AGL said this an important example of how the utility is continuing to add opportunities for long duration storage to its development pipeline.
AGL Chief Operating Officer, Markus Brokhof, said “Adding long duration storage such as pumped hydro is a focus for AGL as we continue to build out the breadth of our development pipeline to achieve our ambition of adding 12GW of new renewables and firming by 2035.
“This acquisition adds to AGL’s growing development pipeline. The project has favourable topography and is located in the Upper Hunter New South Wales, continuing our ongoing commitment to the economy in the Hunter region.
“It is crucial the future energy system is developed with a spectrum of storage and firming, encompassing short, medium, and long-term storage technologies. Developing pumped hydro energy storage and other synchronous long duration storage is integral to ensuring reliability and affordability as Australia transitions to a renewable energy system.
Mr Brokhof said AGL is encouraged by the New South Wales Government’s decision to maintain more than eight hours as the definition for long duration storage as well as its increased targets for long duration storage.
“Government support will be required to help bring these critical projects to market. The attractiveness of pumped hydro is the long technical lifetime of a project, which can range between 80 and 100 years,” he said.
Pumped hydro works by pumping water from a lower reservoir into an upper reservoir where it can be stored and then run downhill through turbines to generate electricity. The stored water is potential energy that can be used when the grid needs it including during peak demand periods.
Outgoing Chairman of UHH, Malcolm Turnbull, said UHH was pleased that AGL was acquiring the Upper Hunter Hydro projects, given its financial and technical capability to deliver the projects and existing presence in the Hunter.
“Long duration storage will play a critical role in Australia’s future energy system, helping to keep the grid reliable by shifting renewable energy to match consumer demand. The Glenbawn and Glennies Creek projects are well placed to create jobs and drive investment in the Hunter, which plays a pivotal role in the energy transition,” he said.
Turnbull Renewables will continue to support the development of the projects.
