Hydrostor and the New South Wales government have officially signed a lease agreement for the Silver City Energy Storage Centre, marking a pivotal moment in the region’s renewable energy strategy.

The project, located near the Potosi mine on the outskirts of Broken Hill, will be a groundbreaking 200-megawatt facility capable of storing 1600 MWh of electricity.

Construction is set to begin in 2025, with completion anticipated by 2028.

The innovative project will utilise Hydrostor’s Advanced Compressed Air Energy Storage (A-CAES) technology, enabling Broken Hill to potentially become one of the world’s largest renewable mini-grids.

The facility aims to replace aging diesel generators and provide reliable backup power for the region.

Minister for Climate Change and Energy Penny Sharpe emphasised the project’s critical importance, noting it will help secure energy supply and prevent potential future emergencies in the Far West region of NSW.

“This Silver City Energy Storage Facility is a solution that will make Broken Hill a renewable energy leader.

“The city will be generating, storing and distributing cleaner and more affordable energy to the Far West region and the rest of the state.

“This project will replace the older large-scale backup diesel generator, preventing a repeat of the recent energy emergency in the Far West region of NSW.”

The Silver City Energy Storage Facility represents a significant milestone in Australia’s transition to renewable energy infrastructure, promising enhanced grid stability and sustainable power generation for Broken Hill and surrounding areas.

Key Project Highlights

• 65-year lease agreement with Crown Lands
• Capacity to generate 200 megawatts of power
• 8-hour full-capacity storage capability
• Estimated $1.2 billion investment over project lifetime
• Projected creation of over 700 jobs