Oven Mountain: $1 billion hydro-electric water project planned
A $1 billion hydro-electric water storage facility is being planned for the NSW Mid-North Coast, which would offer hundreds of jobs and ensure one town ‘won’t run out of water.’ It has also been revealed how the project could impact electricity bills.
Mid-North Coast
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A $1 billion hydro-electric storage system that operates like a ‘giant water battery’ using renewable solar sources, would ensure a guaranteed supply of water for Kempsey during significant droughts.
The Oven Mountain pumped-hydro project has been declared Critical State Significant Infrastructure by the NSW Government and will kick-start the country’s largest Renewable Energy Zone and unlock opportunities for 600 regional jobs.
It will require a one-off fill of water of up to 6 gigalitres in a reservoir on private property, halfway between Kempsey and Armidale at Oven Mountain. It will cut down energy costs by providing up to 600MW of renewable energy every 12 hours.
NSW Water Minister and Member for Oxley, Melinda Pavey, said a project like this would guarantee water for Kempsey during periods of significant drought.
“Red letter day for northern NSW, whether it’s the New England or the Mid North Coast, this project will have enormous positive consequences for our region,” she said.
“Kempsey Council is working towards more sustainable water sources themselves, but in the event there is a terrible situation and we are short of water, there is six gigalitres of water that is stored that the company is proposing this project would be able to share with the community to ensure that Kempsey won’t run out of water.
“That is a real positive … I am very proud to be associated with this project.”
The project, which is a joint partnership between Alinta Energy and The Oven Mountain Pumped Hydro Storage Project, will work as a ‘closed loop system.’
It does not require any dam or river systems, instead, it works in a virtuous cycle whereby water is pumped up hill during off peak times – or when the price is low, and pumped down hill when the price is high and energy is needed.
“Just think of it as a giant water battery,” Anthony Melov, director of the Oven Mountain Pumped Hydro Storage Project, said.
Ms Pavey said the project would include the construction of two reservoirs, tunnels and a new underground power station, creating jobs and critical water infrastructure with the potential to operate as a water source for firefighting and water security for Kempsey.
“This type of project will also help drive electricity prices down,” she said. “Whether you’re a dairy farmer, a manufacturer, or a Mum and Dad with a big electricity bill, this is the type of project that can have a positive impact on electricity bills going forward.
“The infrastructure will enable water from the lower reservoir to be pumped into the upper reservoir using excess power from other renewable energy projects. It is then released to generate up to 600MW of hydro power during periods of peak demand.”
NSW Energy Minister Matt Kean said pumped hydro was essential for the state’s energy future and works by pumping water up the hill when energy is cheap and letting it run down the hill when the sun isn’t shining and the wind isn’t blowing.
“The Australian Energy Market Operator says that NSW needs more than twice the energy storage of Snowy 2.0 again by the mid-2030s and projects like Oven Mountain can help us reach that goal,” Mr Kean said.
“It can take about eight years to deliver massive pumped hydro projects and we need to get going now to create jobs and improve the reliability of the energy grid.”
The proponent will now need to request assessment requirements for the preparation of an environmental-impact statement (EIS). Once received, the EIS will go on exhibition for community feedback and detailed assessment by the Department of Planning, Industry and Environment before a final decision is made.