Broken Hill may soon be home to a first-of-its-kind compressed air energy storage system, with the New South Wales Government granting planning approval for the project – set to rehabilitate an old mine site.
Hydrostor’s Silver City Energy Storage Centre will have a capacity of 200MW/1600MWh, utilising advanced technology that uses compressed air to store energy and generate electricity without producing greenhouse gases.
The Silver City Energy Storage Centre could power about 80,000 homes in peak demand and will maintain a reserve capacity of 250MWh to provide backup to Broken Hill during times of planned and unplanned outages.
The New South Wales Government said the $638 million project is the first-of-its-kind in Australia and will boost the local economy, creating up to 400 full-time construction jobs and around 26 ongoing operational jobs.
During periods of low-energy demand, excess electricity is used to compress air and store it in large underground caverns or tanks.
When energy demand is high, the compressed air is released, heated and expanded through turbines to generate electricity.
The project will be supported by a 65-year government lease on a Crown land site near the Potosi mine at Broken Hill.
The energy storage system will support different renewable energy sources in the region to reliably power homes and businesses in and around Broken Hill.
Broken Hill City Council will receive $3.1 million under a Voluntary Planning Agreement, paid over five years, to benefit the local community.
With work expected to start this in 2025, it is estimated construction of the project will take three to four years.
New South Wales Minister for Climate Change and Energy, Penny Sharpe, said Hydrostor’s Silver City Energy Storage Centre boosts the reliability of the New South Wales 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 in 2024.
“The project will provide construction and ongoing jobs, and will put Broken Hill on the map as a nation leader in renewable energy.”
New South Wales 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 State 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.”
New South Wales 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.”
