Economics

How to Transform a Wilderness Into a Giant Battery

  • PM Turnbull needs energy-security fix with election nearing
  • Pumped hydro looms as solution as coal-fired plants retire
Energy-rich Australia has some of the world’s priciest power. Pumped hydro technology is looking to change that(Source: Bloomberg)
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Chris Gwynne stands in a ravine below a towering dam in the Tasmanian wilderness and ponders whether the giant concrete structure can withstand the politics that may keep it from playing a key role in Australia’s clean energyBloomberg Terminal future.

At a time when some lawmakers are pushing to prolong the country’s reliance on coal for electricity generation, Gwynne and his employer, Hydro Tasmania, are arguing for a A$5 billion ($3.7 billion) investment to transform the Cethana dam and others along its waterway into a giant battery. The aim is to use excess power to pump water from lower bodies to higher ones, where it can be stored for use when electricity demand is high and more supply is needed.