Australia gives go-ahead to 1.6 GWh compressed air storage project

Canadian company Hydrostor has secured NSW government approval to build a 200 MW/1.6 GWh CAES facility in a disused mine cavity near Broken Hill in the west of the state.

The AUD 652 million ($415 million) Silver City Energy Storage Centre (SCESC) will utilize Hydrostor’s advanced CAES technology that produces heated compressed air using excess electricity during periods of low energy demand. The compressed air is sent down a shaft into a purpose-built underground cavern. When energy is required, compressed air is sent back up the shaft to drive a turbine, which generates electricity that can be used to stabilize the local grid, provide energy for Broken Hill, or be sold into Australia’s National Electricity Market (NEM) grid.

Martin Becker, Hydrostor’s senior vice president of origination and development, said state government planning approval is a critical step in the development of the project, which is set to begin construction this year with a build phase expected to take three to four years. “We are very pleased to be able to bring this project to the DA [development application] stage,” he said. “The approval marks a significant step along both Hydrostor’s journey in Australia and the adoption of long-duration [energy storage] technology nationally.”

Hydrostor said, once built, the Silver City project will operate as a large energy storage asset, connected to the NSW grid and able to trade large quantities of energy on a daily basis.

It will also provide crucial long-duration energy storage capacity and stability to the Broken Hill region and wider electricity network.

The company has already signed an agreement with Transgrid to provide back-up power to the town. Transgrid owns the single 220 kV electricity transmission line that connects Broken Hill to the national grid and is responsible for back-up supplies when that line is out of service. The deal requires Hydrostor to reserve up to 50 MW of capacity, representing up to 250 MWh of storage from the Silver City project, to provide back-up power supply.

During power outages, the project will leverage generation from renewable energy sources in the region including the 53 MW Broken Hill solar farm and the 200 MW Silverton wind farm. The new system will replace two diesel generators that currently provide back-up energy supply.

“Crucially for the region, SCESC will support the community’s energy needs and protect against future blackouts by forming the backbone of a mini-grid which, when fully operative, will be able to supply Broken Hill with power for days, if not weeks,” said Hydrostor in a statement.

“SCESC will draw from existing renewable energy infrastructure in the region, which currently sits idle during an outage, to form an independent energy solution capable of supplying the entire town without needing connection to the NEM.”

NSW Minister for Energy Penny Sharpe said the Silver City project will provide vital back-up power for Broken Hill, giving residents and businesses certainty and reliability of electricity supply. “Energy storage solutions like this will go a long way to preventing blackouts like the ones the Far West experienced last year,” she said, referring to lengthy blackouts after storms damaged grid infrastructure in that part of NSW. Sharpe added, the project will also provide a significant economic boost for the region.

It is anticipated the project will generate up to 400 full-time construction jobs and around 26 ongoing operational jobs. Hydrostor has estimated the site will inject more than AUD 240 million into the Broken Hill community.

From pv magazine Australia.