Australian renewable energy company Genex Power Ltd has signed a 30-year Energy Storage Services Agreement (ESSA) with EnergyAustralia for the 250MW Kidston Pumped Storage Hydro Project (K2-Hydro).
The K2-Hydro involves the development of a 250 MW pumped-storage hydropower plant in Queensland, Australia, approximately 270km north-west of Townsville. The facility acts like a giant battery, pumping water uphill when energy is abundant and releasing it to create power at night or on a windless day.
Key terms of the ESSA include:
Genex CEO, James Harding, said, "Since November 2019, Genex has been actively working with all of its project stakeholders, including EnergyAustralia, NAIF and the Queensland Government, to complete the restructuring of the project financing for K2-Hydro and progress to financial close as quickly as possible. We have been extremely pleased with the support of our stakeholders and counterparties during this period and now believe, with today’s signing of the ESSA with EnergyAustralia, that we have the basis to move forward to financial close of the project. The K2-Hydro project will be the first pumped storage hydro project in the National Electricity Market in almost40 years, and the first to be developed under private ownership."