AGL plugs into pumped hydro project in South Australia
AGL plans to develop a pumped hydro project to boost storage for SA’s renewable energy output.
AGL Energy plans to develop a 250 megawatt pumped hydro project at a copper mine in South Australia’s Adelaide Hills region by 2024 to boost storage for the state’s high renewable energy output.
The agreement gives AGL (AGL) the right to develop, own and operate the proposed facility at Hillgrove Resources’ 50-year old Kanmantoo copper mine after its owners first started studying the concept several years ago in the original hope of having a project up and running by 2021.
The electricity giant will lodge a development application in 2020 and would buy the land required for the project from Hillgrove shortly after a final investment decision following the completion of processing at Kanmantoo.
“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,” AGL’s executive general manager of wholesale markets Richard Wrightson said. “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.”
AGL would join another high profile pumped hydro project at one of the state’s mines proposed by billionaire Sanjeeev Gupta who plans to develop a storage facility at the Middleback Range near Whyalla in disused mining pits.
About half of South Australia’s power comes from renewable energy sources but the state has been heavily relying on emergency safety nets to keep its grid stable in the last few years, underlining the need for more storage options including pumped hydro.