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Unlocking Pumped Hydro for New South Wales

New South Wales, Australia

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AECOM is helping WaterNSW identify promising sites for long-duration energy storage, supporting the transition to reliable, renewable energy.

Supporting a renewable energy future

Long-duration energy storage is critical for Australia’s renewable energy future, particularly as states like New South Wales (NSW) increase its reliance on intermittent energy sources such as wind and solar. Pumped hydro energy storage (PHES) has emerged as one of the most proven, scalable solutions. However, identifying viable pumped hydro sites is complex and capital-intensive, requiring early risk identification across environmental, technical and grid-related factors. WaterNSW, in collaboration with the NSW Department of Energy, Climate Change and Sustainability (ECCS), launched a state-led Renewable Energy and Storage Program to accelerate pre-feasibility investigations for potential PHES sites on existing WaterNSW assets.

Building the case for investment

In partnership with WSP and Artelia, we’ve been engaged as Technical Services Provider for the pre-feasibility stage of the NSW Long Duration Storage Program.

We’re supporting WaterNSW to identify and de-risk sites that could ultimately deliver up to 5.2 GW of pumped hydro capacity by 2034. The objective is clear: eliminate early-stage uncertainty so only the most viable projects progress to full feasibility.

Our role includes:

  • Desktop research investigations into grid capacity; bathymetry, terrain and access; geotechnical conditions; environmental impacts, biodiversity and cultural heritage.
  • Functional design support for the pumped hydro schemes and development of schematic concepts for key project elements:
    • New upper storage reservoirs, 
    • Intakes from the existing WaterNSW reservoirs (which would act as the lower storage), 
    • Power waterways, access tunnels and underground powerhouses, 
    • Switchyards and transmission lines, and 
    • Provision for site facilities and access roads to each proposed site.
  • Development of a comparative assessment framework to evaluate candidate projects.  

Our technical inputs will inform WaterNSW’s investment decisions and help attract private sector interest to future joint development. The approach is methodical, transparent and aligned with the goals of the NSW Electricity Infrastructure Roadmap.

Laying the groundwork for a renewable grid

Beyond technical evaluation, our work plays a key role in shaping broader market confidence. By helping to develop robust, evidence-based project scopes and risk profiles, we are laying the groundwork for future feasibility studies and commercial investment.

This work also supports regional economic development, as many candidate PHES sites are located near existing dam infrastructure in regional NSW. If progressed, these projects could contribute to local job creation and boost regional economies while enhancing grid resilience and renewable integration across the state. Most importantly, our input embeds environmental and community considerations from the earliest stages of development.

Unlocking sustainability

The NSW Long Duration Storage Program represents a critical step in shaping the state’s energy future. With our technical expertise, multi-disciplinary approach, and proven experience in renewable energy infrastructure, we are a trusted partner in early-stage project development. Together with WaterNSW, we’re helping unlock the full potential of pumped hydro, providing a stable backbone for the clean energy transition and creating a model for future energy storage initiatives nationwide.