An old Broken Hill mine site will soon be transformed into a first-of-its-kind compressed air energy storage system, delivering energy security, jobs and investment to Broken Hill.
The Minns Labor Government has provided planning approval for Hydrostor's compressed air energy storage system with a capacity of 200 megawatts (MW) / 1,600 MW-hours (MWh). The Silver City Energy Storage Centre could power about 80,000 homes in peak demand and will maintain a reserve capacity of 250 MWh to provide back-up to Broken Hill during times of planned and unplanned outages.
The project is the first-of-its-kind in Australia. It utilises advanced technology that uses compressed air to store energy and generate electricity, without producing greenhouse gases.
The $638 million project 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 year, it is estimated construction of the project will take three to four years.
