Broken Hill Mini-Grid Takes Big Step Forward as Development Application Approved for Silver City Energy Storage Centre

MELBOURNE, AUSTRALIA, 25 FEBRUARY 2025 – Global long duration energy storage developer, Hydrostor, today announced the Development Application for its Silver City Energy Storage Centre (SCESC) has been approved by the New South Wales Department of Planning, Housing and Infrastructure (DPHI). The approval is a critical step in the development of the Broken Hill-based long-duration storage project, which is set to begin construction later this year.

The project will provide crucial long duration energy storage capacity and stability to the Broken Hill region and the wider network, 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.

Crucially for the region, SCESC will support the community’s energy needs and protect against future blackouts by forming the backbone of a mini-grid, which when fully operative will be able to supply Broken Hill with power for days, if not weeks.

SCESC will draw from existing renewable energy infrastructure in the region (which currently sits idle during an outage) to form an independent energy solution capable of supplying the entire town without needing connection to the NEM.

Based on the average power requirements for a household, the project is capable of supplying more than 80,000 homes for a day when it is fully charged. 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.

Martin Becker, Hydrostor’s SVP of Origination and Development, said:

“We are very pleased to be able to bring this project to the DA stage, and we want to thank the Department for their work in helping us through this rigorous process. The approval marks a significant step along both Hydrostor’s journey in Australia and the adoption of long duration technology nationally.

“Most crucially, we also want to sincerely thank the community of Broken Hill for sharing their thoughts, their questions and their town with us, helping us to bring this positive project to this stage.”

Commenting in the NSW Government’s media release, ministers made the following statements:

Minister for Climate Change and Energy Penny Sharpe said:

“Hydrostor’s Silver City Energy Storage Centre boosts the reliability of the NSW electricity grid and provides back-up for homes and businesses in the state’s far west in times of planned and unplanned outages.

“Energy storage solutions like this will go a long way to preventing blackouts like the ones the Far West experienced last year.

“The project will provide construction and ongoing jobs, and will put Broken Hill on the map as a nation leader in renewable energy.”

Minister for Planning and Public Spaces Paul Scully said:

“The city needs a reliable supply of power and this project will provide certainty and reliability for local residents and businesses.

“The Minns Government is working with proponents to see industrial sites rehabilitated and renewed for future use.

“This technology not only supports our transition to cleaner energy sources but also promotes economic growth through job creation in the energy sector.”

Minister for Lands and Property Steve Kamper said:

“It’s fantastic to see planning approval confirmed for the Hydrostor project which will be further supported by a 65-year government lease on a Crown land site near Broken Hill.

“The Silver City Energy Storage Facility will be the first of its kind for Australia, generating both vital backup energy for Broken Hill and significant ongoing jobs and investment spending for the Far West economy.”

ENDS

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Zachary Link, zachary@wilkinsonbutler.com, (+61) 0400 275 415

About Silver City Energy Storage Centre

The Silver City Energy Storage Centre (“Silver City”) is an Advanced Compressed Air Energy Storage project capable of 200 MW generation for 8 hours duration (1600MWh). The project is located adjacent the Potosi Mine in Broken Hill, New South Wales, Australia.

Silver City will operate as a large energy storage asset, connected to the NSW grid and able to trade large quantities of energy on a daily basis. It will also act as an emission-free, long-term grid reliability solution for Broken Hill and the wider region, supporting existing and new renewable energy generation, and serving communities and mining loads in the most cost-effective manner.

This Project received development funding from the NSW Government under the Emerging Energy Opportunities Program and project funding from the Australian Renewable Energy Agency (ARENA) as part of ARENA’s Advancing Renewables Program. To learn more, visit https://www.silvercityenergystorage.com/

About Hydrostor Inc. 

Hydrostor is a leading developer and operator of long-duration energy storage systems. Hydrostor leverages a proven technology solution for delivering long-duration energy storage to power grids around the world. Hydrostor’s technology uses compressed air and water to store energy. This patented technology allows grid operators to draw on clean energy, even when there is no sun to fuel solar panels and no wind to generate energy from turbines.

Hydrostor has a successful utility scale facility commercially contracted to Independent Electricity System Operator (IESO) located in Goderich, Ontario, and two advanced projects in development in Kern County, California and New South Wales, Australia. We have an extensive early-stage pipeline of projects in North America, Australia, and Europe.

Hydrostor, founded in 2010, is backed by Goldman Sachs Asset Management, the Canada Pension Plan Investment Board (CPPIB) and other forward-thinking institutional investors, providing financial security to commit to top-tier energy projects. We are headquartered in Toronto, Canada and Melbourne, Australia. Follow us on LinkedIn.