Last week, Hydrostor joined the Australian New South Wales State Government in the town of Broken Hill on the future site of the Silver City Energy Storage Centre (SCESC), to announce the signing of a Crown Lands agreement which will support the project’s construction. The agreement will see Hydrostor lease the land for a period of 65 years, with construction expected to begin next year following development approval.
SCESC will provide crucial long duration energy storage capacity and stability to the Broken Hill region, with a total capacity of 200 MW and 1,600 MWh (8 hours of storage duration at full output). Once completed, the new energy storage facility will replace ageing diesel generators, nearing their end-of-life. The project is also significant to the State as it looks to increase the deployment of long-duration energy storage solutions that enable the transition towards a stable National Electricity Market (NEM).
The project will support Broken Hill’s energy grid by reliably incorporating the increasing amount of renewable energy, while providing a reliable backup power solution to the city when required. The facility will be able to generate 200 megawatts of stored power, over 8 hours when discharging at full capacity, and much longer at a lower output.
With support from the NSW Government, SCESC will form the backbone of a mini-grid which will draw from existing renewable energy infrastructure in the region to form a ‘closed circuit’, independent energy solution capable of supplying the entire town without needing connection to the NEM. The implementation of this solution is set to protect Broken Hill from future outages and mitigate intermittency challenges present in the region.
Hydrostor has been progressing engineering work, and working closely with Transgrid, conducting technical studies to ensure that SCESC can underpin the stability of a mini grid.
Based on the average power requirements for a household, Silver City is capable of supplying more than 80,000 homes for a day when it is fully charged. If needed, the facility can also respond to varying grid needs and run much longer at a lower output.
The project has been assessed through a comprehensive regulatory process for long-term energy supply at Broken Hill and was identified as the most cost-effective and technically appropriate solution against alternatives that include diesel and battery solutions. In addition, SCESC will provide more than 700 jobs in the region during construction and into the operation phase, and up to 35 jobs during operation.
Last week’s announcement represents a significant momentum shift in Australia’s energy landscape more broadly, with clear recognition of the value of long duration technology and Advanced Compressed Air Energy Storage (A-CAES) specifically, to the nation’s local energy needs. We look forward to providing further updates on SCESC as they happen.