Australia's Hydrostor 200MW Energy Storage Project Secures Grid Connection Approval

en.Wedoany.com Reported - Hydrostor has secured grid connection approval for its Silver City Energy Storage Centre project in Broken Hill, New South Wales (NSW). The project, Australia's first underground compressed air energy storage (CAES) facility of its kind, will feature a 200MW energy storage plant with a storage capacity of 1,600MWh, capable of delivering at least 8 hours of electricity, and is currently in a "near-shovel-ready" state.

The grid connection approval was issued by the Australian Energy Market Operator (AEMO) and Transgrid, New South Wales' transmission company. Martin Becker, Hydrostor's Head of Australia, stated that this approval confirms the Silver City project meets the Generator Performance Standards, marking a critical step in completing all regulatory approvals required to connect to the New South Wales transmission network. He noted that the project underwent a rigorous assessment process to this end, including extensive modeling, simulation, and grid studies.

The Silver City project will employ Hydrostor's CAES technology. During periods of low energy demand, the system uses surplus electricity to generate heated compressed air, which is sent down a shaft into underground caverns; when the grid requires energy, the compressed air returns up the shaft to drive turbines and generate electricity. Jon Norman, President of Hydrostor, told pv magazine in May that the company's CAES system can achieve a round-trip efficiency of approximately 60% to 65%.

Hydrostor stated that once completed, the project will connect to the New South Wales grid as a large-scale energy storage facility, storing electricity during periods of energy abundance and dispatching it when needed. According to the company's statement, at full charge, the project's storage capacity can meet the daily electricity needs of more than 80,000 households, and will support renewable energy generation, enhance grid reliability, and provide a long-term energy security solution for Broken Hill and the surrounding region. The project will deliver up to 8 hours of long-duration energy storage, with 50MW/250MWh of capacity reserved to provide backup power for Broken Hill and far western NSW during grid outages.

Becker stated that as Australia brings more renewable energy generation online, long-duration energy storage will play a crucial role in providing reliable power when needed and strengthening grid resilience. He said that while delivering an innovative and complex project like Silver City presents challenges, the long-term benefits for Broken Hill and the far west region—greater energy security, new investment, jobs, and economic activity—make it a project worth doing well.

The Silver City Energy Storage Centre is Hydrostor's first project in Australia, building on a 2MW demonstration project the company operates in Canada. Hydrostor stated that its global compressed air energy storage project pipeline has reached 7GW, including another 500MW "near-shovel-ready" project in California. The company is also seeking to develop a 500MW project in the Cultana/Whyalla region of South Australia, and is advancing two 500MW early-stage development opportunities in western and southwestern Victoria.