Hydrostor has obtained grid connection approval for its Silver City Energy Storage Centre project, which is being developed in Broken Hill, New South Wales. This initiative represents the first underground compressed air energy storage (CAES) facility of its kind in Australia, featuring a capacity of 200 MW and capable of delivering 1,600 MWh of energy storage, sufficient for at least eight hours of supply for Broken Hill and its surrounding regions.
The project has successfully met a crucial regulatory requirement, with Hydrostor announcing the approval from the Australian Energy Market Operator (AEMO) and the state transmission company, Transgrid.
Martin Becker, Hydrostor’s Country Lead, stated that this approval confirms the Silver City project adheres to Generator Performance Standards and marks a significant milestone in the process of securing all necessary regulatory approvals for connection to the New South Wales transmission network.
Becker remarked, “Grid connection approval is another significant step for Silver City and reflects the considerable work that has gone into progressing a critical piece of energy infrastructure for Broken Hill.” He highlighted that the project has undergone a thorough assessment process, which included extensive modelling, simulations, and network studies.
The Silver City project will utilise Hydrostor’s CAES technology, which generates heated compressed air using surplus electricity during periods of low energy demand. This compressed air is then stored in an underground cavern. When energy is needed, the compressed air is released back up the shaft to drive a turbine, generating electricity.
Jon Norman, the company president, mentioned in May that the CAES system can achieve a round-trip efficiency of approximately 60% to 65%.
Upon completion, the Silver City facility will function as a large-scale energy storage asset linked to the New South Wales grid, storing energy during times of abundance and dispatching it when required. Hydrostor indicated that when fully charged, the project will have the capacity to supply energy equivalent to more than 80,000 homes for a day. It aims to support renewable energy generation, enhance grid reliability, and provide a long-term energy security solution for Broken Hill and the broader region.
The project will offer up to eight hours of long-duration energy storage, with 50 MW/250 MWh allocated for backup power to Broken Hill and the far west of the state during network outages.
Becker emphasised the importance of long-duration energy storage as Australia increases its renewable generation capacity, ensuring reliable power availability and bolstering grid resilience. He noted, “While delivering a project as innovative and complex as Silver City presents challenges, the long-term benefits for Broken Hill and the Far West, including greater energy security, new investment, jobs, and economic activity, make it a project worth getting right.”
The Silver City Energy Storage Centre marks Hydrostor’s inaugural project in Australia, building on its operational 2 MW demonstration project in Canada. The company has a global pipeline of CAES projects totalling 7 GW, which includes another near-ready 500 MW project in California. Additionally, Hydrostor is pursuing the development of a 500 MW project in the Cultana/Whyalla region of South Australia and is advancing two early-stage development opportunities of 500 MW each in western and southwest Victoria.
Source: pv magazine Global
