NSW to target near doubling of long duration capacity

The NSW government will set a target to nearly double the state’s long-duration energy capacity between 2030 and 2034, as it moves to address a glaring gap in a grid dominated by renewables.

Australia’s largest pumped hydro project, Snowy Hydro, is years behind schedule and well over budget, following geological problems.

The NSW Labor government will set a new target to nearly double the state’s long-duration energy capacity between 2030 and 2034, as it moves to address a glaring gap in a grid dominated by renewables.

The target of developing an additional 12 gigawatt hours between 2030 and 2034 will soothe market jitters about NSW’s energy transition roadmap.

The state has set aggressive transition targets but energy officials are concerned about what will power Australia’s most populous state when the sun is not shining or the wind is not blowing.

In a signal that it will soon move aggressively to underpin long-duration storage, NSW Energy Minister Penny Sharpe will on Friday announce that Labor will introduce legislation to legislate a new target of 28 gigawatt hours by 2034. The state currently has a target of 16 gigawatt hours by 2030. “This additional target will provide a clear signal for investors and demonstrates that NSW is committed to supporting more long-duration storage over the long term,” Ms Sharpe will say in excerpts of the speech seen by The Australian.

Ms Sharpe will confirm that the state will define long-duration storage as the ability to dispatch electricity for eight hours, a definition that for now captures just pumped hydro projects.

Batteries – the most common form of back-up to Australia’s energy grid – currently do not have the capacity to run beyond four hours.

Pumped hydro therefore is the most viable solution, but Ms Sharpe acknowledged projects were complicated and could take many years. “We know many of these projects are complex and have long lead-times. We’re committed to supporting this important sector – we’re in it for the long haul,” Ms Sharpe will say.

Pumped hydro can take years to develop and can be prohibitively expensive. Australia’s largest pumped hydro project, Snowy Hydro, is years behind schedule and well over budget, following geological problems.

Pumped hydro projects, however, are seen as vital if Australia is to meet Labor’s ambitious plan of having renewable energy generate 82 per cent of the country’s power by 2030.

Pumped hydro projects can use cheap electricity produced by renewable energy sources to pump water uphill. The water is later released downhill to drive turbines and produce power.

The NSW pledge will win favour with Australia’s energy industry, particularly AGL Energy which earlier this year warned it needed policy certainty if it was to proceed with pumped hydro projects.

However, while industry will welcome the pledge, it does not include details about how the state intends to financially support the initiative.

Originally published as NSW to target near doubling of long duration capacity