Renewable Energy and Storage Program

WaterNSW is unlocking clean energy opportunities across our land and assets to support a secure, sustainable and affordable energy future for NSW.  We're enabling projects that stabilise the grid, create jobs and grow regional economies, while continuing to deliver safe and reliable water to our customers.

Projects underway

Priority investigation areas

WaterNSW is working to identify the most viable sites for projects like pumped hydro by completing early pre-feasibility studies. This information will give communities and developers more certainty and understanding earlier in the project process, as well as potentially speeding up future development.

Developers will be required to create proposals that align with our water operations and supply, and in the case of successful proposals, build and fund the projects, leasing WaterNSW land.

We're currently investigating three priority investigation areas including  Blowering, Burrendong and Hume - with the aim of adding another 2 GW of storage by 2034.

Have a question? Ask our program team at one of the following drop-in sessions near you.

Drop-in sessions

Blowering Dam

Saturday 18 October
10am–12pm
In front of Batlow IGA, Selwyn Street, Batlow

Burrendong Dam

Monday 10 November
8am–12pm
In front of Wellington Woolworths, Arthur Street, Wellington

Hume Dam

Thursday 16 October
3-5pm
Bowna Community Hall, 860 Bowna Road, Bowna

Benefits for NSW

As one of NSW's largest landholders, WaterNSW can support the state's clean energy goals while continuing to deliver reliable water services. By enabling long-duration storage projects on WaterNSW land, the program will:

  • help stabilise the energy grid with new storage capacity
  • grow and diversify regional economies, including jobs and training opportunities
  • reduce emissions and deliver energy security via local supply
  • attract private investment to regional NSW
  • generate revenue that can help keep water prices affordable.

The projects use existing infrastructure and water resources responsibly, protecting water quality and our water supply requirements.

Together, the programs could help deliver up to 5.2GW of pumped hydro by 2034 - approximately 18% of NSW's long duration storage target.

News

May 2025 - AGL has acquired 100 per cent ownership of two early-development stage pumped hydro projects at Glenbawn and Glennies Creek

The projects, originally developed by Upper Hunter Hydro,  have a combined capacity of up to 1,393 MW and potential for integrated wind. The projects will continue to be developed and funded by AGL, not the NSW Government or WaterNSW.

March 2025 – Pre-feasibility studies underway to consider more WaterNSW sites with potential 

WaterNSW is carrying out pre-feasibility studies of WaterNSW-owned sites to explore more opportunities to bring to market pumped hydro energy storage projects. The studies will assess a range of factors including accessibility and terrain, site constraints, geotechnical suitability, grid connectivity and others before any decisions are made.

Read our March 2025 Renewable Energy Storage Program start of pre-feasibility studies update (PDF, 161.25 KB) to learn more.

November 2024 - Renewable Energy and Storage Programs Progressing Across NSW

As part of the Renewable Energy and Storage Program, WaterNSW has partnered with three developers to support the planning and development of key projects. The projects are being developed and funded by the private sector developer, not the NSW Government or WaterNSW.

Read our November 2024 Renewable Energy Storage Program update (PDF, 329.72 KB) to understand how these projects are progressing.

Development opportunities

WaterNSW continues to explore opportunities to support private sector investment in renewable energy and storage projects leveraging its land, reservoirs, and infrastructure.

Learn more about future development opportunities

Frequently asked questions

What is pumped hydro and how does it work?

Pumped hydro is a highly efficient and reliable method of storing and generating electricity and plays a crucial role in NSW’s transition towards a more sustainable and renewable energy future.

Pumped hydro harnesses the power of gravity and water to store and generate electricity efficiently.

Water is pumped uphill from a lower storage reservoir to an upper reservoir through underground tunnels using renewable energy sources. This water is then released back down to generate renewable electricity, via power generating turbines, that is stored in large water driven battery.

By using the movement of water to produce renewable energy, it can be stored and used when needed. Another feature is the closed loop system used to move water between the lower and upper reservoir. This means the same volume of water cycled back and forth and there is no net loss of water from pumped hydro.

WaterNSW is pleased to be able to leverage our land and assets to facilitate pumped hydro energy storage projects.

What are the benefits of pumped hydro in the development of renewable energy?

Pumped hydro supports NSW’s 2050 net zero emissions target by replacing fossil-fuel powered electricity with large-scale, reliable renewable energy generation that is available on demand.

A modern energy grid that is powered by renewables should be capable of providing energy on-demand to consumers.

Being able to store energy allows a pumped hydro plant to reduce price spikes and the risk of power-supply interruptions caused by insufficient supply, and with a lifespan 70-100 years, pumped hydro projects can last five times longer than other current battery systems, supporting on-going future power supply.

Why is pumped hydro required?

NSW’s energy system is going through an energy transformation driven by the exit of coal and other emissions intensive generation sources. The NSW Government has signalled that over the next 15 years, four of the five coal fired power stations which currently provide around three quarters of the State’s energy supply, will retire.

Intermittent renewable energy, including solar and wind generation, will in large part replace this generation and will play an important role in helping the NSW Government’s ambitions to reach net zero emissions by 2050. However, the variability of generation from intermittent renewable sources, means that it is not necessarily available on demand.

Investment in complementary forms of short and long duration electricity storage, such as pumped hydro, is therefore important to ensure surplus renewable energy can be stored and to ‘even out’ fluctuations’ in generation. Furthermore, pumped hydro energy storage provides a range of essential network services that may not be able to be provided by intermittent renewable energy sources. These play a critical role in helping to deliver NSW energy consumers a secure and reliable network.

Does the project consume more electricity than it generates?

Pumped hydro has long been recognised as both a very efficient and effective part of electricity systems, balancing times of low and high electricity supply from variable energy sources, whilst also assisting grid reliability and stability. This is increasingly important in regions where intermittent renewables (large scale wind and solar farms) produce a large proportion of the region’s electricity consumption.

As more electricity is needed to pump the water up the hill than is produced moving the water down the hill, the facility is a net user of electricity. However, these plants are incredibly efficient (at around 80%) and can be made available in only a matter of minutes, making it very competitive with other energy storage options such as battery storage.

Who will own the projects?

Following a commercial tender process coordinated by WaterNSW, the projects are entirely developed and funded by the private sector developer, not the NSW Government or WaterNSW. The developer manages the environmental assessments and approvals, construction and operation of the project.

How will the projects access the water at a WaterNSW dam? How will WaterNSW protect the local environment and water supply?

Pumped hydro energy storage projects operate as a ‘closed loop’ system. This means water is continuously cycled between an upper and lower reservoir during operation. The only water taken from a WaterNSW dam is for the initial fill and to top up small losses from evaporation and operations.

Since the same water is reused, pumped hydro projects don’t need a water access licence to move water between their reservoirs. However, any water they do take must comply with the Water Management Act 2000. Like all water users, they must ensure their water use doesn’t impact existing licence holders or the state’s sustainable diversion limits.

Protecting water quality, catchment health and community values remains central to WaterNSW’s role. Any future development would need to meet strict environmental standards, ensure no impacts to water security, supply or access, and align with WaterNSW’s responsibilities as a land and water manager.

How were the sites chosen for feasibility studies?

WaterNSW used its deep knowledge as land custodians, combined with pre-feasibility studies assessing terrain, geotechnical conditions, environmental factors, and grid connectivity. These critical early steps help identify sites with strong potential for long-duration energy storage projects that could play a major role in powering a reliable, renewable energy future.

What kind of work is required as part of feasibility studies?  When will decisions be made?

Feasibility studies may include site-specific analysis such as geological mapping (e.g. rock and stone collection), photography, walkovers, sample collection, Aboriginal cultural heritage surveys, and flora and fauna assessments. All studies are non-intrusive and are designed to determine whether a site might be technically, environmentally and socially suitable.

Preferred sites are expected to be identified from 2026. From there, WaterNSW will run a commercial tender process to fairly and transparently select a developer to progress the project. Any future development would require environmental studies, community consultation, and formal planning approvals before any decisions are made.

Contacts

Renewable Energy and Storage Program enquiries should be directed to:

WaterNSW Renewable Energy and Storage Program Engagement team
Phone: 0427 403 620
Email:  engagement@waternsw.com.au

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