Two proposed pumped hydro energy projects valued at more than $7 billion have been declared Critical State Significant Infrastructure by the NSW Government, a designation that allows them to proceed through a state-led planning and assessment process.
In a news release, the New South Wales Government said the Western Sydney Pumped Hydro Project at Lake Burragorang and the Yarrabin (Phoenix) Pumped Hydro Project near Mudgee have the potential, if approved, to supply electricity to more than one million homes during peak demand periods.
The projects, both in early planning stages, would be developed on WaterNSW land and remain subject to detailed environmental assessment, public exhibition and community submissions.
Energy and Environment Minister Penny Sharpe said the projects could play a role in supporting grid stability as the state transitions away from coal-fired power.
“These projects will help stabilise the grid, support energy reliability during peak demand periods and underpin the transition away from coal-fired power,” she said, adding that long-duration storage such as pumped hydro is “essential to building a modern energy system that works for households, businesses and industry across NSW”.
Planning and Public Spaces Minister Paul Scully said the declaration reflected growing investment interest in renewable infrastructure, but did not remove the need for scrutiny.
“These two pumped hydro projects could play a vital role in supporting our energy security,” he said, while noting they form part of a broader pipeline of renewable proposals moving through the planning system.
Water Minister Rose Jackson said WaterNSW had already undertaken initial assessments to consider potential impacts.
“Importantly WaterNSW has already conducted a number of initial assessments to make sure these projects won’t impact water security or quality,” she said, adding that further analysis would continue to inform planning and assessment decisions.
The NSW Government said more than 50 renewable energy, storage and transmission projects are currently under assessment, alongside a larger pipeline of proposals, though the pumped hydro projects declared on Thursday will require separate approvals before construction can proceed.
