AGL Energy has signed a binding agreement with Hillgrove Resources Limited for the rights to build, own and operate a 250MW pumped hydro energy storage development on the site of the old Kanmantoo copper mine in South Australia.
Through a statement, South Australian Minister for Energy and Mining commented: This is an exciting pumped hydro project which aligns with the Marshall Government’s policy of matching storage capacity with renewable energy resources to deliver cheaper, more reliable and cleaner electricity for South Australian households and businesses.”
AGL Energy will be paying $31 million through a staged payment scheme for the rights to develop the proposed pumped hydro energy storage project.
“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 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,” AGL Executive General Manager of Wholesale Markets Richard Wrightson said.
Source: Hillgrove Resources Limited
The proposed pumped hydro energy storage project is going to be built on the old Kanmantoo mine in the Adelaide Hills region, with the Giant Pit to be utilised as the lower pond and a Hillgrove-owned land for the upper pond.
In addition to the 250MW generation capacity, the project will also include approximately 8 hours of energy storage - the State’s largest storage capacity to date.
“We are delighted to work with AGL on the delivery of this project which will transform a former mining site into one of the lowest cost electricity storage projects in Australia, at a time when synchronous generation and bulk storage is critically needed,” Hillgrove’s Managing Director Steven McClare said.
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