A plan to create a major power source at a disused gold mine in north Queensland capable of powering 100,000 homes has been given the green light in a feasibility study.
Genex is developing the hydro storage project at Kidston in conjunction with a solar farm on the site, a former gold mine 270km northwest of Townsville.
The plant is designed to pump water into an upper storage reservoir through the day or overnight when prices are low, then release it into a lower reservoir to generate power during periods of high demand or need.
Genex has completed a pumped-storage feasibility study, with the Australian Renewable Agency (ARENA) providing up to $4 million to support the work.
The study found the plant would have 250 megawatt generation capacity with six hours of continuous generation and 1500 megawatt hours of total storage capacity.
ARENA chief executive officer Ivor Frischknecht said the study results showed the project, which would essentially convert the mine into a giant battery, was feasible and outlined the best design for the plant.
“This is a very positive milestone and a springboard for Genex to develop and finance the full-scale project,” Mr Frischknecht said.
“The favoured design would be capable of rapidly delivering enough electricity into the grid to power over 100,000 homes when it’s needed most.”
Early indications show it could provide low cost storage that’s significantly cheaper than other options such as batteries.
“It comes at a time when cost effective storage options are becoming increasingly important as more large-scale renewable energy generation enters the national electricity market,” Mr Frischknecht said.
Genex is now focused on securing finance for the project and is fast-tracking revenue and contracting negotiations.
It hopes to reach financial close and start construction in 2017.
