The Australian Renewable Energy Agency (ARENA) has announced a $4 million support towards a feasibility study into the construction of a 330 MW pumped storage hydroelectric power plant at the disused Kidston Gold Mine in North Queensland.
The project is spearheaded by power generation development company, Genex Power, which bought the old Kidston gold mine last year with a view to transform it into a large-scale hydroelectric power plant that will deliver power into Queensland’s electricity network during peak demand periods.
ARENA CEO Ian Kay said the funding will allow Genex Power Limited to examine the technical and commercial viability of the $282 million project.
“This feasibility study aims to pave the way for the first new pumped hydro storage development in Australia in more than 40 years,” Mr Kay said.
“Energy storage is becoming increasingly important as more renewables are connected to the Australia’s electricity grids. Pumped hydro storage can provide a cost-effective alternative to large-scale battery storage and concentrating solar thermal storage.”
According to him, the project could go a long way towards reviving the pumped hydro storage industry in Australia.
“The proposed plant would take advantage of the Kidston mine’s unique characteristics and the existing infrastructure at the site, minimising its environmental footprint. The novel approach will use the former mining pits as upper and lower water storage reservoirs,” Mr Kay added.
“If the case for pumped hydro storage at disused mine sites is proved, it could give abandoned mines across Australia a new lease on life. Genex has already identified nine sites with similar characteristics to Kidston that could be potential future candidates.”
Ganex’ proposed plant will operate on an off-peak pumping, peak generation cycle, storing excess electricity during periods of low demand and high generation.
The company is also exploring the use of variable speed turbines, which can effectively manage grid stability in areas with grid constraints or high levels of renewable energy generation.
Mr Kay said the ARENA-supported feasibility work would deliver useful knowledge for the solar and wind renewable industries.
“The project will identify the technical, financial and regulatory roadblocks to the further development of pumped hydro and large-scale storage in Australia, along with any risks involved with using disused or abandoned mine sites for energy storage,” Mr Kay said, adding that the results of the feasibility study are due in October 2016.
The Kidston Pumped Storage project is located some 270km north west of Townsville near the township of Georgetown.