AGL secures approval to develop 250 MW pumped hydro energy storage project in Australia

AGL has announced that it had secured the right to develop, own and operate a 250 megawatt pumped hydro energy storage project at Hillgrove Resources Limited’s Kanmantoo copper mine in South Australia’s Adelaide Hills region.

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, the project is expected to be completed and operating by 2024.

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 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.