The Government will progress to the next stage of the NZ Battery Project, looking at the viability of pumped hydro as well as an alternative, multi-technology approach as part of the Government’s long term-plan to build a resilient, affordable, secure and decarbonised energy system in New Zealand, Energy and Resources Megan Woods says.
The NZ Battery Project was set up in 2020 to explore possible renewable energy storage solutions for when our hydro lakes run low for long periods. A pumped hydro scheme at Lake Onslow was one of the options being explored. The Government stopped the Lake Onslow investigations in late 2023.
A consortium of specialist firms has been awarded a major contract to advance the New Zealand Battery Project’s feasibility investigation into a pumped hydro storage scheme at Lake Onslow, the Minister of Energy and Resources Megan Woods has announced.
Pumped hydro is an ingenious way of storing energy in a big reservoir, which is released into a lower reservoir when more power is needed, like a giant battery. A dry year solution would be a huge step towards our mission to move towards more renewable energy generation and power more of New Zealand in New Zealand.
A feasibility study is due to be completed and cabinet is expected to decide early in the new year whether to continue to the next phase of establishing a detailed business case. Pumped storage hydropower is an established technology. It accounts for more than 94% of the globally installed energy storage capacity.
Worldwide, pumped storage hydropower has been ramping up. In 2021, 4.7GW capacity was added, up from 1.5GW in 2020. If it continues, the Onlow project will be one of the largest PSH schemes in the world, adding up to 1.5GW of generation capacity. The proposed scale of the Onslow project requires a considerable investment – at least NZ$4 billion.