Global long duration energy storage (LDES) developer and operator Hydrostor has inked a lease deal with the New South Wales Government for the construction of the Silver City Energy Storage Centre, designed to provide crucial minigrid backup power to Broken Hill.
The agreement will see Hydrostor lease the land for a period of 65 years, with construction expected to begin next year following development approval.
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The deal follows the collapse of seven transmission towers and backup power failures in Broken Hill following a storm on October 17, leaving the region without electricity for days. The Australian Energy Regulator and Independent Pricing and Regulatory Tribunal are investigating the incident to review whether there have been any potential breaches of the National Electricity Rules.
The Silver City Energy Storage Centre is set to be housed near the Potosi mine site—a Crown Lands site located on the Northeast outskirts of Broken Hill. The project will support Broken Hill’s energy grid by incorporating the increased generation of reliable, renewable energy and provide a reliable backup power solution to the city when required.
The facility will have the capacity to generate 200MW of power, which can provide 8 hours of storage when discharging at full capacity, and much longer durations at a lower output.
Hydrostor’s mini-grid concept would enable Silver City to draw from existing renewable energy infrastructure in the region to form a ‘closed circuit’, independent energy solution capable of supplying the entire town without needing connection to the NEM. The implementation of this solution is set to protect Broken Hill from future outages and help protect against intermittency challenges in the region.
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Hydrostor vice president of origination and development Martin Becker says, “This is a major milestone in our journey toward realising an extremely important project, not just for Broken Hill, but for Australia. We look forward to delivering Silver City which is a critical missing piece in the state’s energy mix, and a much-needed solution for the region.
“We want to thank the NSW Government for recognising the value of Silver City, long duration energy storage technology more broadly, and most importantly the potential for this project to protect the region’s energy through the establishment of a minigrid closed system in the event of outages. We are excited to deliver this project, which we are confident will benefit every member of the community.”
