EnergyAustralia and EDF to partner on Lithgow pumped hydro project

EnergyAustralia has announced it has formed a strategic partnership with EDF power solutions Australia, to co-develop and deliver the Lake Lyell Pumped Hydro Energy Storage (LLPHES) project in Lithgow. If developed, the project would be capable of producing 385 MW of reliable dispatchable energy — enough to supply over 250,000 homes in NSW for up to eight hours.

EnergyAustralia says the joint venture announcement followed a rigorous process, with EDF power solutions Australia chosen for its significant global experience and capability in the development and operation of pumped hydro energy storage assets.

“Our purpose is to lead and accelerate the clean energy transformation for all. The LLPHES project is a major initiative as part of this transition, providing storage that will firm renewables,” said Mark Collette, Managing Director of EnergyAustralia. “We recognise pumped hydro requires unique expertise to ensure it is developed and delivered efficiently, while considering the best interests of the local community and the wider state of NSW. This partnership will enable both EnergyAustralia and EDF power solutions Australia to lend their expertise to the continued development of this important project.

“EnergyAustralia holds long-term relationships with the Lithgow community, and we have built strong relationships with the community. We look forward to continuing to work with the community and local stakeholders.”

“EDF Group is one of the world’s largest diversified low-carbon energy producers,” said James Katsikas, CEO of EDF power solutions Australia. “We own and operate over 20 GW of hydroelectric assets across the globe and are developing many more. In Australia we are already leading the Dungowan PHES project near Tamworth, NSW, with 300 MW and 10 hours of storage that will support NSW’s energy transition.

“We will work with EnergyAustralia and all interested stakeholders to ensure that LLPHES becomes a model of sustainable development and a source of real pride for the region.”

Together, EnergyAustralia and EDF power solutions Australia own 100% of the project, with EDF power solutions Australia having acquired a 75% equity interest. EnergyAustralia will retain first rights to the power offtake for LLPHES. EnergyAustralia will continue to have responsibility for community, neighbour and stakeholder engagement and the Lithgow community as part of the project.

The project is working towards its environmental impact statement submission in 2025, with the final investment decision targeted for late 2026.

Image caption: Lake Lyell. Image credit: iStock.com/Phillip Wittke