ACEN’s Phoenix pumped hydro project is winning big in AEMO’s latest storage tender, providing a major boost to NSW’s energy transition.
The Phoenix Pumped Hydro Energy Storage (PHES) project, proposed by ACEN Phoenix, is the largest among the three selected projects, boasting an impressive 800 megawatts (MW) capacity and 11990 megawatts-hour (MW/h) of energy storage.
This facility will be capable of dispatching energy for up to 15 hours, making it a cornerstone of NSW’s transition to a more reliable, renewable-powered grid.
Alongside ACEN’s pumped hydro project, two large-scale battery energy storage systems (BESS) were also successful: the 125 MW Stoney Creek BESS by Enervest Utility and the 100 MW Griffith BESS by Eku Energy.
“The long duration storage capacity supported through this tender is the largest to date, and we’re seeing strong competition and innovation in how project proponents are bidding – meaning we’ve been able to support more projects with increasing value to NSW electricity consumers,” AEMO Services Executive General Manager Nevenka Codevelle said.
The long-term energy service agreements offered through the tender process provide financial certainty to developers, reducing investment risk while limiting cost exposure for NSW electricity consumers.
Successful projects, including the Phoenix PHES, will ensure reliable, firmed renewable energy is available when needed, putting downward pressure on electricity prices and reducing renewable energy curtailment.
The three awarded projects mark substantial progress towards NSW’s long-duration storage targets.
With these new contracts, the state has now secured 40 per cent of its 2030 power capacity target of 2 gigawatts and over 65 per cent of its 2034 energy storage goal of 28 gigawatts-hour.
“We’re now looking ahead to our next long-duration storage tender for projects that commit to being operational by 2034,” Codevelle said.
“In particular, we encourage short lead-time projects to step forward to help us meet our 2030 target.”
The Clean Energy Council (CEC), the peak body of Australia’s renewable industry, welcomed the result.
“These long duration storage assets will be a huge help, as NSW weans itself off its ageing, expensive and unreliable fleet of coal generators,” CEC’s Acting Chief Policy Officer Christiaan Zuur said.
“It will help reduce emissions and importantly, reduces the risk of blackouts and the massive energy price increases that have resulted from an over reliance on coal and gas.”
Subscribe to Energy Today for the latest project and industry news.