WaterNSW Shortlists Pumped Hydro Sites to Boost New South Wales Renewable Energy Transition

Strategic Step Toward Long-Duration Energy Storage
WaterNSW, the state-owned water utility, has announced that three of its major dams—Blowering, Burrendong and Hume—have been identified as potential sites for new pumped hydro energy storage (PHES) developments. The announcement marks a significant milestone in advancing New South Wales’ clean energy agenda.Following pre-feasibility studies across 41 dams in the state, the shortlisted sites were chosen after assessing grid access, terrain, geotechnical suitability, and functional design. The next phase will involve further investigations by private developers to confirm project viability.
Potential to Add 5.2GW of Energy Storage
WaterNSW estimates that a buildout of pumped hydro projects at its identified sites could deliver up to 5.2GW of long-duration energy storage (LDES) by 2034. This aligns with the NSW Electricity Roadmap, which sets ambitious goals of adding 16GW of renewable generation capacity and 42GWh of storage within the same timeframe.Importantly, WaterNSW emphasized that all projects would be privately funded, with neither the company nor the government directly financing construction. Instead, WaterNSW’s Renewable Energy and Storage Program facilitates access to land and reservoirs, enabling developers to progress feasibility studies.
Partnerships with Leading Energy Developers
The program has already drawn interest from major energy companies. ACEN Australia is developing the Phoenix Pumped Hydro Project at Burrendong, with a planned output of 800MW and a 12-hour storage duration (9,600MWh). The project recently secured a Long-Term Energy Service Agreement (LTESA) under the NSW roadmap’s tender process.Meanwhile, AGL has proposed two facilities at Glenbawn and Glennies Creek dams, offering a combined capacity of 1,393MW at 10-hour duration (14,000MWh). ZEN Energy is also advancing its Western Sydney Pumped Hydro Project, repurposing a disused coal processing site at Lake Burragorang near Warragamba Dam.
Future Expansion Under Review
Mark Roberts, WaterNSW’s head of major projects, called the announcement“an important milestone in identifying new sites that could host privately developed long-duration pumped hydro projects to support the state’s renewable energy transition.” However, he stressed that the three shortlisted dams are not yet confirmed for development.
Roberts added that “a small number of additional sites may also be added, once further pre-feasibility studies have been completed later this year.”