Australia Approves AUD 1.8 Billion Project to Convert Former Coal Mine into Pumped Hydro and Solar Farm
2026-07-21 11:26
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en.Wedoany.com Reported - The New South Wales government has approved an AUD 1.8 billion project to transform a former coal mine into a pumped hydro and solar farm with a total installed capacity of approximately 620 megawatts.

The Stratford Pumped Hydro and Solar project, located about 100 kilometers north of Newcastle, is situated on the site of the Stratford Mining Complex, where coal mining operations ceased in 2024. The project is being developed by Gloucester Coal Pty Ltd, a subsidiary of Yancoal Australia Limited, and includes a 300-megawatt pumped hydro storage station (with 12 hours of storage capacity) and a 320-megawatt solar farm.

Yancoal stated that the site's natural topography, land holdings, and proximity to existing transmission infrastructure and demand centers make it an ideal location for pumped hydro storage. As the Stratford Mining Complex already has water sources available for pumped hydro use, the operation of the site will not require the use of natural water sources from the Gloucester Valley.

Minister for Planning and Public Spaces Paul Scully said this is the first pumped hydro project in New South Wales to receive final planning approval in six years. He stated that the project represents a commitment to a clean energy future and marks the beginning of an evolution in jobs and power generation in the Hunter region, demonstrating how former mine sites can be maximized to create new employment opportunities and industries.

To generate electricity, water will be transferred through tunnels between a new upper reservoir and an existing dam, with the initial reservoir water sourced from the existing mine. The project will provide stable energy by storing excess electricity generated during the day and releasing it to generate power during peak evening hours, and is expected to achieve approximately 13% of New South Wales' 2034 long-term energy storage target.

Yancoal noted that government approval does not necessarily mean the project will proceed. The company is assessing the commercial viability of the project and considering preferred ownership, financing, and operational models, which will require approval from Yancoal's board and further government evaluation.

The project was declared Critical State Significant Infrastructure (CSSI) in June 2024 and is part of the New South Wales government's Electricity Infrastructure Roadmap. This roadmap is a 20-year plan aimed at diversifying the generation mix and providing greater energy security as the state phases out coal-fired power generation.

Currently, more than 57 renewable energy, storage, pumped hydro, and transmission projects are under assessment in New South Wales. If approved, these 12.9 gigawatts of generation projects could produce enough electricity to meet the needs of approximately 6.68 million households. Another 107 projects, including solar, wind, battery storage, and pumped hydro projects, are at various stages of the planning process.

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