The Federal Energy Regulatory Commission in the US has accepted Daybreak Power Inc’s application for a preliminary permit for its proposed 2200MW Navajo Energy Storage Station near Page, Arizona.

FERC’s decision on January 14 marks an important early milestone for this estimated $3.6 billion project, which would utilize existing transmission infrastructure at the retired Navajo Generating Station coal plant, says Daybreak.

The Navajo Energy Storage Station (NESS) is a pumped storage hydropower facility that would use water from Lake Powell and a new reservoir on a plateau above the lake. It was sited to minimize impacts on endangered species, steer clear of culturally significant sites and avoid adverse impacts on recreation.

“Everyone knows we’re going to need massive amounts of storage to integrate high levels of renewables, and we need to do it smart and cost-effectively. The Navajo Energy Storage Station does that,” said Daybreak CEO Jim Day. “This project marks a turning point for this region to begin its transition off of coal and onto solar and wind at a scale never seen before, here or anywhere else.”

The NESS facility is Daybreak’s second energy storage project, following its proposed 1540MW Next Generation Pumped Storage facility that would utilize water from Lake Mead and transmission infrastructure near Hoover Dam.