Wednesday, 24 March 2021 13:12

ARENA commits $47 million to Qld pumped hydro plant Featured

Kidston Qld pumped hydro plant Kidston Qld pumped hydro plant

The Australian Renewable Energy Agency (ARENA) has committed $47 million to support Queensland pumped hydro plant operator Genex Power's Kidston Stage 2 Pumped Hydro Energy Storage (PHES) project.

ARENA says the funding allocation means that Australia’s first pumped hydro plant in 37 years is one step closer, with the Genex pumped hydro facility to be co-located with the existing 50 MW solar farm.

The proposed $777 million project - including required transmission infrastructure - will be the first pumped hydro plant to be built in Australia since 1984, and the first to be used specifically to support the integration of variable renewable energy generation from solar and wind. 

Located at the former Kidston Gold Mine at the Kidston Clean Energy Hub in North Queensland, the project is a 250 MW / 2,000 MWh PHES, equivalent to eight hours of energy storage.

ARENA says two existing mining pits at the former gold mine will be utilised as the upper and lower reservoirs for the PHES to minimise construction time and costs - and during peak power demand periods, water will be released from the upper to the lower reservoir, passing through reversible turbines.

During off peak periods and when the sun is abundant, water will be pumped back from the lower reservoir to the upper reservoir using electricity imported from the National Electricity Market (NEM).

Genex also has approval for up to $610 million in concessional debt finance from the Northern Australia Infrastructure Facility.

Genex and key shareholder J-POWER will provide equity to the project, with EnergyAustralia is to be the project offtake partner for a period of up to 30 years, and a joint venture of John Holland and McDonnell Dowell is the EPC contractor. 

ARENA says a 187 kilometre transmission line, supported by the Queensland Government and Genex, will be required to connect the Kidston Renewable Energy Hub to the NEM, with the transmission line also expected to facilitate the connection of further renewable generation projects in the region. 

Construction is expected to be completed by 2024 and the project is expected to generate 500 construction jobs and a further 20 ongoing operation roles.

ARENA CEO Darren Miller said the funding would enable Genex to create a PHES plant that can provide reliable, dispatchable and affordable renewable energy to the grid. 

“This is a landmark project for all involved and paves the way for renewables to play a larger role in Australia’s electricity grid. Genex will be delivering the first pumped hydro project in Australia since 1984 and the first to be used solely for energy storage and generation rather than water management.

ARENA says the Australian Government’s first Low Emissions Technology Statement has highlighted the importance of large scale energy storage solutions to facilitate more low cost solar and wind generated electricity into the grid. 

“Large scale storage will play a key role in ensuring security and reliability of Australia’s electricity system as we transition to renewables,”said Miller.

“Pumped hydro is expected to be a key technology enabling us to store abundant solar and wind energy when it is available and dispatch this energy back into the grid during the evening and other times of peak demand, so it is imperative these projects get underway.”

ARENA previously provided $8.9 million towards Genex’s 50 MW Kidston Solar Project in 2016. ARENA also already provided funding for feasibility and development totalling $9 million towards the pumped hydro portion of the project, and the CEFC has also provided a loan to Genex to help finance its equity contribution to the project.

“Having championed this project from conception, and having supported pumped hydro feasibility studies across Australia, we are very excited to see this project reach financial close and commence construction,” Miller said. 

Subscribe to ITWIRE UPDATE Newsletter here


The much awaited iTWire Shop is now open to our readers.

Visit the iTWire Shop, a leading destination for stylish accessories, gear & gadgets, lifestyle products and everyday portable office essentials, drones, zoom lenses for smartphones, software and online training.

PLUS Big Brands include: Apple, Lenovo, LG, Samsung, Sennheiser and many more.

Products available for any country.

We hope you enjoy and find value in the much anticipated iTWire Shop.



iTWire TV offers a unique value to the Tech Sector by providing a range of video interviews, news, views and reviews, and also provides the opportunity for vendors to promote your company and your marketing messages.

We work with you to develop the message and conduct the interview or product review in a safe and collaborative way. Unlike other Tech YouTube channels, we create a story around your message and post that on the homepage of ITWire, linking to your message.

In addition, your interview post message can be displayed in up to 7 different post displays on our the site to drive traffic and readers to your video content and downloads. This can be a significant Lead Generation opportunity for your business.

We also provide 3 videos in one recording/sitting if you require so that you have a series of videos to promote to your customers. Your sales team can add your emails to sales collateral and to the footer of their sales and marketing emails.

See the latest in Tech News, Views, Interviews, Reviews, Product Promos and Events. Plus funny videos from our readers and customers.


Share News tips for the iTWire Journalists? Your tip will be anonymous




Guest Opinion

Guest Reviews

Guest Research

Guest Research & Case Studies

Channel News