Hydrostor has received planning approval from the New South Wales government for its groundbreaking 200 megawatt (MW) / 1,600 megawatt-hour (MWh) compressed air energy storage (CAES) system at a former mine site in Broken Hill.
The Silver City Energy Storage Centre, a $638 million project, represents a first for Australia, utilizing innovative CAES technology to store and generate electricity without greenhouse gas emissions. Authorities confirm the facility will have the capacity to power approximately 80,000 homes during peak demand and maintain a 250 MWh reserve capacity to ensure grid stability for Broken Hill.
The CAES system operates by using surplus electricity during low-demand periods to compress and store air in underground caverns. When demand rises, the compressed air is released, heated, and expanded through turbines to produce electricity.
Hydrostor will operate the project under a 65-year government lease on Crown land near the Potosi mine. Construction is slated to begin this year and is expected to take three to four years to complete. This project marks a significant step towards bolstering Australia’s renewable energy storage capabilities and enhancing grid reliability.