The transformation of one of Australia's oldest open-cut pits into a 250 megawatt pumped hydro project has been boosted by a $9.45million state government funding injection.
The Muswellbrook pumped hydro project, a joint venture between AGL Energy and Idemitsu Australia, was one of five NSW projects that received a total of $44.8 million from the pumped hydro recoverable grants program.
Pumped hydro energy storage constitutes more than 94 per cent of electricity storage worldwide. The five NSW projects would have a potential combined capacity of almost 1.75 gigawatts.
The funding follows the latest Australian Electricity Market Operator (AEMO) Electricity Statement of Opportunities that urged all levels of government to deliver renewable energy and transmission projects as fast as possible to maintain a reliable electricity supply.
AGL said the Muswellbrook Pumped Hydro project funding would enable it to advance studies, which began in 2019, to a stage where the project is ready for investment.
It is unclear how long the project, if it proceeds, will take to construct. However, AGL said last year that it could be operating by 2027.
AGL Chief Operating Officer, Markus Brokhof, said he was pleased to see the project progressing to the next stage.
"Today we're announcing another step forward in planning for what could be a significant energy asset for the people of Australia and the Upper Hunter community," he said.
"As we transition to more renewable energy sources, pumped hydro provides a reliable on-demand generation source and acceleration of our development studies will help us understand how the project could be delivered."
NSW Energy Minister Matt Kean said the funding would allow pumped hydro developers to help cover upfront costs and lower investment barriers for the private sector.
"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," he said.
"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."
Farmers for Climate Action welcomed the government's investment.
"The NSW Government says these five pumped hydro projects will create 2300 jobs and add a whopping 1.7 gigawatts of vital long duration storage," Farmers for Climate Action chief executive Fiona Davis said.
"We look forward to more announcements of this kind in other states and territories, and more regional jobs created by investment in clean energy."
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