EnergyAustralia and EDF to Develop 385 MW Hydel Project

EnergyAustralia, an electricity generation, electricity and gas retailing private company, has announced that it has formed a strategic partnership with EDF power solutions Australia, to co-develop and deliver the Lake Lyell Pumped Hydro Energy Storage project (LLPHES) in Lithgow.

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

The joint venture will enable the continued development of the Project. Together, EnergyAustralia and EDF power solutions Australia own 100% of the Project, with EDF 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.

If developed, the LLPHES Project would be capable of producing 385 MW of reliable dispatchable energy – enough to supply over 250,000 homes in New South Wales (NSW) for up to 8 hours.

EnergyAustralia’s Managing Director Mark Collette said that their 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.

“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 Australia to lend their expertise to the continued development of this important Project,” he said.

He added: “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 Power Solutions Australia CEO James Katsikas said that their organisation brings deep international and local experience that uniquely positions it to help deliver the LLPHES project safely, efficiently and to a world-class standard.

Katsikas said that EDF Group is one of the world’s largest, diversified low-carbon energy producers. It owns and operate over 20 GW of hydroelectric assets across the globe and are developing many more GW. In Australia the EDF group is already leading the Dungowan PHES project near Tamworth, NSW, with 300 MW and ten 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,” he added.

FID in 2026

The Project is working towards its Environmental Impact Statement submission in 2025, with Final Investment Decision targeted for late 2026.

EnergyAustralia has invested hundreds of millions of dollars into its Mt Piper power station, which is today one of Australia’s most flexible coal-fired power stations, capable of reducing generation when renewables are abundant. EnergyAustralia is also developing a major utility scale battery at the Mt Piper site.