The Australian Government is supporting Origin Energy to examine the feasibility of expanding its existing Shoalhaven pumped hydro scheme.

Pumped hydro energy storage involves pumping water up to a storage reservoir and releasing it through a turbine to provide additional energy into the electricity grid when it is needed.

Pumped hydro helps to make renewables more reliable by acting as a battery which can be dispatched at times of peak demand.

The current 240MW Shoalhaven Pumped Hydro Scheme could be expanded by an additional 235MW in storage generation and capacity if found to be feasible.

Through the Australian Renewable Energy Agency (ARENA), the Australian Government is providing funding of $2 million to Origin Energy for the feasibility study.

A full feasibility study will cost $6.8 million and is expected to be completed in 2019.

The study will examine pumping water from Lake Yarrunga to Fitzroy Falls Reservoir, by passing the Kangaroo Valley Power Station, and making use of a new underground pumped power station.

It is hoped that this study can provide insights which will be beneficial to other pumped hydro projects around Australia.

This project is a great example of the Government's commitment to delivering reliable and more affordable electricity.