Hydrostor's Silver City Energy Storage Centre (SCESC) has been given the green light, with the New South Wales Department of Planning, Housing and Infrastructure approving the project's Development Application.
The project will provide crucial long duration energy storage capacity and stability to the Broken Hill region, and will replace the ageing diesel generators that are ordinarily relied upon in the event of a blackout.
The SCESC is capable of supplying more than 80,000 homes for a day when it is fully charged, and will form the backbone of a mini-grid which when fully operative will be able to supply Broken Hill with power for days, if not weeks.
In addition, the project will provide more than 700 jobs in the region during construction and into the operation phase, and up to 35 jobs during operation.
Mayor Tom Kennedy said Broken Hill would benefit greatly from the project moving forward.
"This project will provide jobs and growth for Broken Hill, along with stability for our electricity network," he said.
"The development of major projects like this along with other mining ventures on the horizon should ensure Broken Hill prospers well into the future."
Minister for Climate Change and Energy, Penny Sharpe, said the project would be a key to preventing long-term interruptions to power in Western NSW.
"Hydrostor's Silver City Energy Storage Centre boosts the reliability of the NSW 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 last year.
"The project will provide construction and ongoing jobs, and will put Broken Hill on the map as a nation leader in renewable energy."