AGL acquires Upper Hunter pumped hydro projects

AGL today announced the acquisition of 100 per cent ownership of two pumped hydro energy storage projects held by Upper Hunter Hydro Top Trust and its trustee (UHH).

The two early-stage projects are located in the Hunter region, NSW. On current designs, the projects at Glenbawn and Glennies Creek plan to provide 770 MW 10-hour and 623 MW 10-hour pumped hydro energy storage capacity respectively with the future opportunity for integrated wind farms.

This is an important example of AGL continuing to add opportunities for long duration storage to its development pipeline.

AGL Chief Operating Officer, Markus Brokhof, said “Adding long duration storage such as pumped hydro is a focus for AGL as we continue to build out the breadth of our development pipeline to achieve our ambition of adding 12 GW of new renewables and firming by 2035.”

“This acquisition adds to AGL’s growing development pipeline. The project has favourable topography and is located in the Upper Hunter NSW, continuing our ongoing commitment to the economy in the Hunter region.”

“It is crucial the future energy system is developed with a spectrum of storage and firming, encompassing short, medium, and long-term storage technologies. Developing pumped hydro energy storage and other synchronous long duration storage is integral to ensuring reliability and affordability as Australia transitions to a renewable energy system.”

“AGL is encouraged by the NSW Government’s decision to maintain 8+ hours as the definition for long duration storage as well as its increased targets for long duration storage. Government support will be required to help bring these critical projects to market. The attractiveness of pumped hydro is the long technical lifetime of a project, which can range between 80 and 100 years.”     

Pumped hydro works by pumping water from a lower reservoir into an upper reservoir where it can be stored and then run downhill through turbines to generate electricity. The stored water is potential energy that can be used when the grid needs it including during peak demand periods.

The outgoing Chairman of UHH, the Honourable Malcolm Turnbull AC, said UHH was pleased that AGL was acquiring the Upper Hunter Hydro projects, given its financial and technical capability to deliver the projects and existing presence in the Hunter.  

“Long duration storage will play a critical role in Australia’s future energy system, helping to keep the grid reliable by shifting renewable energy to match consumer demand. The Glenbawn and Glennies Creek projects are well placed to create jobs and drive investment in the Hunter which plays a pivotal role in the energy transition,” he said.

Turnbull Renewables will continue to support the development of the projects.