Confidence is high surrounding the Goat Hill Pumped hydro project after the South Australian government announced development approval earlier this week.
With work already underway for detailed plant design and construction contracting, Delta Electricity boast the project will be “shovel ready” well before competing projects in the state.
The 230MW/1840MWh project, located 12 kilometres west of Port Augusta, will require an investment of about $410 million and will create around 200 jobs during construction.
Delta has the development rights for the project, with Altura Group as the project developer.
“With the growth of renewables and a reliance on high cost gas generation, South Australians will benefit from the complementary, reliable and affordable energy storage that pumped hydro will provide,” Delta’s Managing Director Greg Everett said.
“Goat Hill is a world class energy solution that will be able to pump and store energy when renewable energy is abundant and will generate 230MW of electricity for up to 8 hours when there is a need for reliable, on-demand dispatchable energy”.
Altura Group has already engaged SNC-Lavalin, WBHO Infrastructure and SRG Engineering on an Early Contractor Involvement basis and work is reported to be progressing well.
The South Australian Government has also committed $4.7m to facilitate final project development, expediting the final investment decision.
Minister for Energy and Mining Dan van Holst Pellekaan said the project will offer hundreds of jobs over the next several years.
“Importantly pumped hydro, just like solar thermal, is renewable generation with storage which means the energy can be used when it is needed and not just when it is windy or sunny,” he said.
“Our government’s energy policy specifically supports large grid scale storage projects so that often over-abundant renewable energy can be stored until demand is high and so improve reliability and reduce the cost of electricity.”