Australia’s transition to renewable energy is accelerating, with ambitious targets to reduce greenhouse gas emissions in the electricity sector and expand the use of clean energy sources.
As coal-fired power plants are phased out, technologies like wind and solar power are leading the way. However, to address the variability of these sources, long-duration storage solutions such as pumped hydro are essential for ensuring grid stability and reliability.
Alinta Energy’s Oven Mountain Pumped Hydro Project is a multi-billion-dollar development located on private land adjacent to the Macleay River, between Armidale and Kempsey. Situated within the New England Renewable Energy Zone – a strategic area identified by the NSW Government – the site offers ideal topography and close proximity to existing electricity infrastructure, making it a prime location for renewable energy development.
The project leverages water and gravity to generate and store electricity, featuring two reservoirs at different elevations connected by tunnels. A key innovation of this project is its ‘off-river’ or ‘closed-loop’ design, which will initially source water from the Macleay River but remain self-sustaining thereafter. This innovative approach eliminates the need for river damming and avoids any net impact on local water use.
Once operational, the Oven Mountain Pumped Hydro Project will add up to 900 MW of electricity generation capacity and provide eight hours of dispatchable energy storage at full generation. With a lifespan exceeding 100 years, this project will play a vital role in strengthening the national electricity grid.
Delivering value through cost management
In partnership with engineering firm WSP, our team has provided cost management and advisory services, leveraging deep technical expertise in renewable energy projects. Through our dedicated MEP (Mechanical, Electrical, and Plumbing) Engineering team, we have supported critical project phases, ensuring cost efficiency and alignment with industry benchmarks.
Furthermore, we facilitated the Early Contractor Involvement (ECI) agreement between Alinta Energy and the joint venture of Gamuda and Ferrovial Construction, enabling effective project design and constructability planning in 2024. This collaborative, proactive approach supports optimal project outcomes by addressing challenges early and enhancing overall value.
A long-term commitment to sustainability
Pending approval, the Oven Mountain Pumped Hydro Project is expected to commence construction in 2025, with completion and operation scheduled for around 2030. Upon completion, it will deliver significant economic and environmental benefits, including an annual reduction of approximately 400,000 tonnes of CO₂-equivalent emissions in generation.
By combining innovation, sustainability, and effective cost management, the Oven Mountain Pumped Hydro Project exemplifies the importance of reliable energy storage in Australia’s renewable energy future.
Stock image for illustrative purposes only.
