The New South Wales (NSW) government has given the green light to proceed for a $1.8 billion project that aims to turn a former coal mining site into a pumped storage and solar site with around 620 MW of combined capacity.
Located, about 100 kilometers north of Newcastle, the Stratford Pumped Hydro and Solar project will sit on the Stratford Mining Complex site where coal mining operations ended in 2024. The project by Gloucester Coal Pty Ltd, a subsidiary of Yancoal Australia Limited, includes a 300 megawatt (MW) pumped hydro power station with 12 hours of energy storage and a 320 MW solar farm.
The site’s natural topography, land holdings and proximity to existing electricity transmission infrastructure and demand centers “makes it an ideal location for pumped hydro energy storage,” Yancoal said. As water is already available at the Stratford Mining Complex to charge the pumped hydro, water from natural sources in the Gloucester Valley would not required to operate the site.
“This is the first pumped hydro project to secure final planning approval in NSW in 6 years,” Minister for Planning and Public Spaces Paul Scully said. “It’s a sign of our commitment to a clean energy future and the beginnings of an evolution of jobs and energy generation in the Hunter to power homes and businesses. Projects like Stratford Pumped Hydro also show how we can make the most of former mining sites and create new jobs and industry which will help to drive the region’s economic growth for decades to come”
To generate electricity, water would be transferred between a new upper reservoir and an existing dam via a tunnel, with water for the initial reservoir to be sourced from the existing mine site. It will provide “firming” energy by storing surplus electricity generated during the day during and releasing it to generate electricity at peak times in the evening. It is forecast to deliver around 13% of NSW’s 2034 long duration storage target.
Yancoal noted that government approval does not mean the project will necessarily proceed. The company said it is now assessing the commercial viability of the project and considering preferred ownership, funding and operating models, which would require Yancoal Board approval and further government assessments.
Declared “Critical State Significant Infrastructure” (CSSI) in June 2024, the project is a component of the NSW Government’s Electricity Infrastructure Roadmap, a 20-year plan to diversify the energy generation mix, and provide more energy security as NSW moves away from coal-fired power.
There are currently more than 57 renewable energy, storage, pumped hydro and transmission projects under assessment in NSW. If approved, these 12.9 GW of generation projects could produce enough electricity to power about 6.68 million homes. A further 107 projects, including solar, wind, battery storage and pumped hydro projects are at various stages in the planning pipeline.
