The government of New South Wales, Australia, has declared two proposed pumped storage energy storage projects worth more than US$7bn as Critical State Significant Infrastructure (CSSI), a designation intended to streamline planning and assessment.
The projects named are the A$3.5bn Western Sydney Pumped Hydro Project at Lake Burragorang, being developed by ZEN Energy, and the A$3.6bn Yarrabin (Phoenix) Pumped Hydro Project near Mudgee in central-western New South Wales, led by ACEN Australia.
Both projects remain in early planning stages and are located on land managed by the state-owned water authority WaterNSW. Authorities said each proposal will undergo a full assessment process, including public consultation and opportunities for community submissions.
The Western Sydney project would repurpose a former coal washery site on the eastern side of Lake Burragorang, about 24km upstream from Warragamba Dam. It is designed to store surplus electricity and deliver up to 1GW of on-demand power for roughly eight hours at peak times. The Phoenix project is proposed about 35km west of Mudgee within the Central-West Orana Renewable Energy Zone, an area designated by the state government for renewable generation and grid development. The facility is planned as an approximately 800MW storage plant capable of delivering power for up to 12 hours – with total storage capacity reaching about 15 hours – to support wind and solar generation when output falls.
The New South Wales government said it has approved 44 renewable energy projects since 2023 that, once built, could generate enough electricity to power 5.2 million homes. Officials added that more than 50 renewable energy, storage and transmission projects are currently under assessment, representing about 13.5GW of generating capacity that could supply roughly 6 million homes. Another 196 projects are in various planning stages.
“These projects will help stabilise the grid, support energy reliability during peak demand periods and underpin the transition away from coal-fired power,” commented New South Wales Minister for Energy and the Environment Penny Sharpe. “Long-duration storage like 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 added: “These two pumped hydro projects could play a vital role in supporting our energy security together able to generate enough energy to power every home in Greater Perth during peak demand.
“These critical infrastructure projects are part of a strong pipeline of renewable energy proposals that shows industry confidence in our planning system and our commitment to delivering the infrastructure NSW needs for a clean energy future.”
Water Minister Rose Jackson said: “Water is vital to our everyday lives and these projects could further harness it to power more than a million homes.
“Importantly WaterNSW has already conducted a number of initial assessments to make sure these projects won’t impact water security or quality and we will continue to do analysis regularly, to help inform the planning and assessment processes.”
