Cultana Pumped Hydro Energy Storage Phase 2

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EnergyAustralia and Arup are proposing the development of a 225 MW pumped hydro energy storage project using seawater near Port Augusta, South Australia.The Cultana Pumped Hydro Energy Storage – Phase 2 project acknowledges that energy storage technology is emerging in Australia to support renewable energy integration and maintain a secure a reliable electricity grid – especially in contingency events. Pumped hydroelectric storage plants work like giant batteries; they store energy for use when demand for electricity is high.The ‘Cultana’ pumped hydro facility will be capable of producing 225 MW of electricity to the South Australian electricity grid with eight hours of storage. That’s the equivalent of installing over 120,000 home battery storage systems, but at a third of the cost.Feasibility and concept development for this project is supported by funding from the South Australian Government and ARENA.Key resultsIn light of higher-than-expected capital cost, revenue uncertainty, uncertainty around energy technology development, reducing costs of grid-scale battery technology and development approvals time frame, EnergyAustralia took a negative Financial Investment Decision (FID) in November 2019.The negative FID was the result of evaluation of financial and market modelling and risks under scenarios including increased renewables penetration, interstate interconnectors and introduction of other large PHES into the NEM. With all factors and risks considered the Cultana SPHES did not present a sufficiently compelling business case for EnergyAustralia.

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