The Minns Labor Government has approved Hydrostor’s Silver City Energy Storage Centre in Broken Hill, a compressed air energy storage system that is the first of its kind in Australia, in a move aimed at strengthening the region’s energy security.
The $638 million project will have a capacity of 200 megawatts (MW) and 1,600 megawatt-hours (MWh), capable of powering approximately 80,000 homes during peak demand.
A reserve capacity of 250 MWh will be maintained to provide backup power to Broken Hill during planned and unplanned outages, the government said in a news release.
Utilising advanced technology, the system compresses air and stores it in underground caverns or tanks during periods of low electricity demand.
When demand is high, the compressed air is released, heated, and expanded through turbines to generate electricity.
The project aims to strengthen the reliability of the New South Wales electricity grid while producing no greenhouse gas emissions.
The facility will be constructed near the Potosi mine site on Crown land, supported by a 65-year government lease.
The project is expected to generate economic benefits for the region, with up to 400 full-time construction jobs and around 26 ongoing operational roles.
Broken Hill City Council will receive $3.1 million over five years under a Voluntary Planning Agreement to support local community initiatives.
Construction is expected to commence this year and take approximately three to four years to complete.
NSW Minister for Climate Change and Energy Penny Sharpe highlighted the project’s role in enhancing grid stability and preventing blackouts, noting that it would provide much-needed backup power for the state’s far west.
Minister for Planning and Public Spaces Paul Scully emphasised the importance of reliable energy supply for Broken Hill residents and businesses, adding that the initiative aligns with efforts to repurpose industrial sites for future use.
Minister for Lands and Property Steve Kamper welcomed the approval, stating that the project would bring substantial investment and job opportunities to the Far West region.
According to the government, the energy storage system is expected to integrate with existing renewable energy sources in the area, helping to deliver consistent and sustainable power for the community.
