AGL has secured the right to develop, own and operate a 250MW pumped hydro energy storage project in South Australia’s Adelaide Hills region.
The project would be located at Hillgrove Resources Limited’s Kanmantoo copper mine.
AGL’s Executive General Manager of Wholesale Markets, Richard Wrightson, said, “This is an exciting project, which is consistent with our plans to continue to invest in our core energy markets business as customer needs and technologies evolve.
“If we proceed and the project is approved, it would be an important addition to our technology mix in South Australia, where we have significant wind and thermal generation. It would help us to meet the changing needs of the South Australian energy market, in which energy storage assets are likely to be needed to provide dispatchable capacity as renewables generation increases over the coming years.”
Mr Wrightson said the signing of binding agreements was the start of a multiple stage process to progress the project, including the lodgement of a development application in 2020.
AGL would buy the land required for the project from Hillgrove shortly after a final investment decision, which is expected to be made after the completion of processing at Kanmantoo.
“If all approvals are received, we expect the project to be completed and operating by 2024,” Mr Wrightson said.
