en.Wedoany.com Reported - On July 15, 2026, the New South Wales government has approved Yancoal Australia's plan to convert a retired open-cut coal mine in the Hunter Valley region into a renewable energy hub, combining pumped hydro storage and solar power generation, capable of dispatching 300 megawatts of electricity within 12 hours.
NSW Planning Minister Paul Scully stated on Wednesday that the $1.8 billion Stratford pumped hydro and solar project has been approved for construction on the site of Yancoal Australia's Stratford Mining Complex (SMC). The project was first proposed in 2024 by Yancoal subsidiary Gloucester Coal, the same year the Stratford coal mine ceased operations. This is the first pumped hydro project in NSW to receive final planning approval in six years.
According to the Environmental Impact Statement (EIS), the hub includes a 300-megawatt pumped storage power station with 12 hours of storage capacity, or 9 hours at 400 megawatts, along with a 320-megawatt solar farm. During power generation, water is transferred through tunnels between an upper reservoir and an existing dam, with initial reservoir water sourced from the existing mine site.
The project can store excess electricity during the day and release it during evening peak hours to ensure stable power supply, expected to achieve approximately 13% of the state's 2034 long-duration storage target. The pumped hydro component will involve constructing a new upper reservoir, a tunnel waterway connecting the upper reservoir intake to the power plant, and a tailrace tunnel connecting the power plant to the lower reservoir; the existing dam will be expanded to serve as the upper reservoir.
The project will also build and operate a "behind-the-meter" solar farm to power the pumped hydro system, with excess solar electricity fed into the grid. The existing 132-kilovolt transmission line will be realigned to cross previously disturbed mining areas, and a new on-site substation will be constructed to connect the pumped hydro station and solar farm to the grid.
The Environmental Impact Statement notes that the project site minimizes environmental impacts by utilizing and rehabilitating existing disturbed areas, infrastructure, and water stored in the mine pit, while being close to existing transmission lines and transport routes. Unlike other proposed pumped hydro projects, this one integrates solar power generation with storage, providing additional renewable energy supply for pumped hydro and reducing reliance on grid-imported electricity.
Scully stated that the project marks a commitment to a clean energy future and the beginning of an evolution in employment and power generation methods in the Hunter Valley region, demonstrating how former mining sites can be fully utilized to create new jobs and industries. These factors make the project a commercially attractive post-mining land use opportunity, bringing ongoing economic and social benefits to the local Gloucester community and contributing to the short-term decarbonization of the NSW grid. According to the EIS, the project is expected to power approximately 140,000 households; if replacing gas-fired generation, it could avoid 320,000 to 550,000 tonnes of carbon dioxide equivalent emissions annually. The Stratford solar-pumped hydro project is still awaiting an environmental approval decision from the federal government under the EPBC assessment process.
