Innovation Opportunity
Pumped Hydro: Renewable Energy Generation & Storage
This proposition builds on the UMI-led Upper Murray Place Based Power Plan (UMPBPP) developed to embed a more resilient, reliable and low emissions electricity system for the region. While its primary focus was on implementing a series of microgrids across the region to enable self-sufficiency in energy generation, storage and distribution, the potential of Pumped Hydro in the Upper Murray was also identified.
The opportunity moved into the stage 3 of the Smart Specialisation process in July 2024, to assess options including the Berringama site location that was identified as the best site in the region for a possible big investment and economic project. The Innovation Working Group undertook a due diligence approach for the Berringama site, to ascertain its actual competitive advantage, and to lay out a detailed step-by-step approach that breaks down the scope, required government structure and investment for each step of feasibility phase.
Development of the Berringama Pumped Hydro Energy Storage is expected to be in the order of 4 years to complete feasibility analysis and reach final investment decision (FID). Significant amount of site investigations, engineering and community engagement will need to be completed prior to reaching FID. The time and resources for completion of such a project are beyond the scope of the Local Development Strategy (LDS), so considering its potential as a game changer for the region’s economy, the project should be promoted outside of the Local Development Strategy framework to seek external investors that would support the progress of its feasibility analysis.
POWERING THE UPPER MURRAY’S ENERGY FUTURE
The outcome of the Local Development Strategy is the development of an Upper Murray Pumped Hydro Energy Storage Scoping Report. A marketing document has also been prepared which will be used to attract potential investors for the Berringama site:
UPPER MURRAY PUMPED HYDRO BROCHURE
Scroll down for more information on the different steps, including meeting minutes.
Snowy Hydro, Tooma dam
Stage 1 – Discover
Initial proposition
To investigate and evaluate the potential for pumped hydro development in the Upper Murray that leverages the region’s natural assets (elevation changes and water) to generate and store renewable electricity for use in the region and beyond, while delivering community benefit.
This proposition builds on the community-led Upper Murray Place Based Power Plan (UMPBPP) developed to embed a more resilient, reliable and low emissions electricity system for the region. Primarily focused on implementing a series of microgrids across the region to enable self-sufficiency in energy generation, storage and distribution, this credible plan recognised the potential for pumped hydro in the region.
Recent investigations for pumped hydro installations in the Upper Murray identified a suitable site in Berringama and the relevant site/landowners are on board. This was completed by (community electricity retailer) Indigo Power in collaboration with expertise from The University of Melbourne.
With the prospect of pumped hydro to generate energy at scale in the Upper Murray, there is potential to not only become self-sufficient but also a net exporter of renewable energy, creating additional value for the region. While recognising there may be challenges with securing the initial water volume required, creative ways to overcome this can be explored.
Importantly, pumped Hydro development aligns with renewable energy generation that will preserve the natural amenity of the landscape. It offers an opportunity for the region to build greater capability and capacity in this sector. Further, renewable energy supply to key economic sectors of the region, including agriculture and value add production as well as the breadth of tourism operations and players, will be an important and necessary advantage.
Key assets
- Topography and elevation changes; water resource.
- Appropriate site identified with co-operative land areas/owners.
- Upper Murray Place Based Power Plan activities and local enthusiasm for new energy initiatives; current development of a microgrid in Corryong in partnership with DEECA, with a combination of fundings from Ausnet, Victorian and Federal Governments.
- Established relationship with Indigo Power community energy company.
- Proximity to high voltage transmission lines.
Strategic competitive advantage
- Sustainability of location for pumped hydro.
- Community developments as a background.
- Within a Victorian government designated renewable energy zone (REZ).
Key Challenges
- Water regulations (access) and planning issues.
- High capital, long feasibility study and uncertainty of the Berringama project. A robust planning needs to break down the steps and required investments. Government grants and incentives will likely be an important funding component alongside private investors and the ability to maximise revenue will need to integrate the primary objective of the project: benefit to the community.
Stage 2 – Define
Enterpreneurial Discovery Workshop (Wednesday 5th June 2024, 2PM)
The aim of this workshop was to define the asset further, and link potential opportunities that will create social and economic benefit within the community. The assets were thoughtfully challenged, and a range of opportunities were discussed. The group concluded that while the scale of the Berringama site opportunity makes it a game changer for the region in the long term, it requires a due diligence approach to ensure pre-feasibility of the project and a detailed step-by-step approach to break down the scope, required government structure and investment for each step of feasibility phase.
Stage 3 – Develop
Establishment of an Innovation Working Group (IWG) which includes all required experts, to conduct a due diligence assessment (GANT chart) and scope each phase of this long-term project.
IWG meeting #1: Tuesday 23rd July 2024, 11.30AM
The meeting concluded that the Innovation Working Group first needs to undertake a due diligence approach for the Berringama site. Once technicalities are clarified, broader community engagement will help carry the project further.
IWG meeting #2: Tuesday 27th August 2024, 11.30AM
The meeting concluded that the Innovation Working Group needs to establish a community engagement strategy and discuss the project with the LDS project control group. The scoping/due diligence report needs to be finalised and include further information as discussed about water access and transmission connection.
IWG meeting #3: Tuesday 24th September 2024, 11.30AM
The meeting focused on the community engagement strategy.
IWG meeting #4: Tuesday 3rd December 2024, 11.30AM
The meeting focused on reviewing the current draft scoping report.
