How do we store renewable energy when the sun doesn't shine or the wind doesn't blow? Hydro is how.
Understanding the facts.
We know that many people have questions about pumped hydro and our proposed projects, and that it’s our job to answer them.
To help provide clarity, we’ve compiled some of our most commonly asked questions. For transparency, we’ve provided the most accurate answer we can right now. However, while we’re still undertaking investigations on both of our proposed Projects, some of these answers may change. When this happens, we’ll make that clear.
If you have any further questions or feedback, we strongly encourage you to share your views with us via our survey at the bottom of this page.
Technology.
Pumped hydro is an energy storage system that moves water between two (or more) large reservoirs to generate power.
The reservoirs are constructed at different heights: there’s an upper reservoir, and a lower reservoir. Tunnels connect the reservoirs together via an underground power station that houses turbines and other equipment required to generate electricity.
When energy demand is high, water is released from the upper reservoir. The force of the water falling from the upper reservoir through the tunnels makes the turbines spin in the power station, which generates power. This power makes its way from the underground power station into the electricity network, which guarantees reliable power for Queensland homes and businesses during peak times, and all the time.
Yes. Pumped hydro is one of the oldest forms of energy storage and has been used globally for over a century. According to the International Hydropower Association, pumped hydro accounts for over 94 per cent of stored energy worldwide.
As we transition away from fossil fuels and incorporate more renewable energy into our grid, energy storage becomes increasingly crucial. That’s because, wind and sun energy generation is variable – there are times when there’s no wind, and times when there’s not a lot of sun – like during rainy, cloudy days, or even throughout the night. So we need to store energy to use at these times to ensure we have a constant flow of energy, on demand.
Storage captures energy that’s been generated by renewable sources, to use later when it’s needed. It provides us with dependable access to clean energy regardless of weather conditions.
No matter what renewable energy generation methods are used – whether it’s wind, solar, hydroelectric, geothermal or biomass, to name a few – it must be captured and stored. Storing energy is crucial to guaranteeing secure, dependable energy as Australia moves towards achieving net zero emissions.
See the diagram below of how pumped hydro captures and stores energy.
Yes. However, it’s important to understand why pumped hydro is used. By design, it’s used to store energy which may otherwise be lost.
In pumped hydro energy storage systems, the facility will use (or consume) excess energy from the grid when it’s cheap and abundant, then it will supply it back when energy usage is high.
In Queensland, we have access to large amounts of solar energy, but it’s only produced through the day when most people are at work. A pumped hydro system can capture excess wind and solar energy from the grid when more is being produced than is needed. This allows us to capture and store the excess energy that would otherwise be lost, allowing it to be reused at night when the sun goes down and demand is high.
This process helps to balance the electricity network, avoid losing renewable energy when it is generated, and adds more supply to the network when energy use is high.
Chemical batteries typically provide short duration energy storage, which allows them to discharge at full output for up to two hours. This allows them to smooth out variability over short time periods, but they can also respond very quickly when there are unexpected outages of other generators or emergencies in the network.
Pumped hydro can do many of the same things, but for a longer duration. It has the added benefit of being able to store far greater volumes of energy, which can be used during those rainy days or windless nights where there are prolonged periods of low renewable generation.
In short, batteries and pumped hydro both store renewable energy and improve the stability of the energy system in different scenarios. Both are important, and we need a variety of technologies to provide a holistic and reliable solution in our renewable energy mix.
Read more about the differences between pumped hydro and battery for energy storage here.
Yes. Pumped hydro energy systems use excess solar and wind in the grid to pump water to the upper reservoir, ready to be despatched later when Queensland homes and businesses need it.
In pumped hydro, the water is pumped (via underground tunnels) from a lower reservoir to an upper reservoir. This typically occurs during daylight hours when there’s excess energy in the grid. That water is contained within the system and is circulated from lower to upper reservoirs.
Cost.
The proposed Borumba Pumped Hydro Project has a projected cost of $14.2 billion.
The projected cost for the proposed Pioneer-Burdekin Pumped Hydro Project is being calculated as part of Queensland Hydro’s investigations – which will eventually inform the Detailed Analytical Report (DAR). Many factors influence cost, and our role is to understand those factors fully. It is not possible, nor would it be accurate, to provide an estimate at this stage without having completed the investigations.
Any other estimates of the Projects by external parties have not been vetted or endorsed by Queensland Hydro.
No. According to an independent study conducted by the CSIRO, pumped hydro energy storage systems are the cheapest form of storage for any duration between 8-24 hours. Their study considered the current range of energy storage systems that are commercially available (including batteries) or others that are being explored with research and development.
Comparing pumped hydro to other storage technologies, such as batteries, is not apples for apples. Each technology brings unique strengths to support and secure the future energy grid. Where batteries can provide short-term energy coverage for up to two hours, pumped hydro can store much larger volumes of energy.
We also need to consider the operating life of each of these technologies. Battery technology typically has an operating life of 20 years before major reinvestment is required. By comparison, pumped hydro assets can last more than 100 years, only requiring incremental upgrades over this time.
The Queensland Government has committed an initial amount of up to $6 billion to progress the proposed Borumba Pumped Hydro Project. The total estimated cost is $14.2 billion, with the remainder of the estimated cost to be borrowed by Queensland Hydro via Queensland Treasury Corporation.
The proposed Pioneer-Burdekin Pumped Hydro Project is currently being investigated as part of the Detailed Analytical Report (DAR) process. Part of the investigations include the economic and financial modelling that will inform how the Project will be funded. Any information about funding will be made available after the Queensland Government has made a decision about the Project.
In 2023, the Queensland Government in its financial year budget committed up to $6 billion in equity funding over the proposed Project’s construction phase.
It’s a financial commitment, but funding is subject to the Project receiving all necessary regulatory approvals. If the Project doesn’t receive regulatory approvals, it will not proceed.
Queensland Hydro has not received a lump sum of $6 billion from the Queensland Government. We have received $183.7 million for the 2023-24 financial year to progress the proposed Borumba Project.
Both of Queensland Hydro’s proposed projects are different from the Snowy 2.0 Project. The key difference is the distance between the upper and lower reservoirs.
For Snowy 2.0, the distance between their two reservoirs is approximately 27 km. Both of Queensland Hydro’s proposed projects have much shorter horizontal distances connecting the reservoirs, with lengths of around 3-6 km.
This difference is important, as it can impact cost, geological risk, schedule, environmental impacts, and efficiency of the overall pumped hydro energy storage scheme.
The environment.
We share Queenslanders’ desire to protect our natural environment. We’re committed to leaving the environment we’re operating in better off overall as a result of our proposed projects.
In terms of the bigger picture – we know the largest threat to biodiversity is climate change. Science tells us that to avoid the worst impacts of climate change, we need to reduce our emissions and urgently push towards net-zero. Transitioning to renewable energy is the key to reducing our emissions, and pumped hydro plays a critical role to ensure the transition delivers Queenslanders a reliable renewable energy supply when we need it. For example, our proposed Borumba Project would enable up to four million tonnes of CO2 to be avoided each year.
Locally – we also know our proposed pumped hydro projects are located in and near areas of high conservation value, so we must work in the right way to deliver environmental benefits.
How do we do that? Across all the work we do, our goal is to diligently design, construct and operate the projects to minimise ground disturbance and other impacts. We will:
- study the current environmental baseline
- assess how our projects could affect the environment
- determine how we can avoid those effects on the environment
- where we can’t avoid them, determine how to minimise impacts through actions such as changing the way we construct and through other environmental management practices
- offset any unavoidable impacts to achieve a net improvement in environmental values
We know we can’t avoid all the projects’ potential impacts on certain habitats. So, offset management will be an important way to ensure we leave the environment in a better state than when we found it. If habitats or species are expected to be impacted, we will find and improve new and more expansive areas to deliver a better conservation outcome. We will ensure that our approach to offsetting improves the viability of relevant threatened species and their habitat.
Some of our environmental care practices include:
- developing environmental management measures and plans to avoid, minimise and manage environmental impacts, and to offset any unavoidable residual environmental impacts
- working with environment and natural resource management bodies, Traditional Owners, locals, regulatory agencies, and experts to capture and incorporate all available knowledge, and
- designing proposed projects to avoid and minimise impacts, for example reducing the overall project footprint and moving proposed locations of site infrastructure.
Many factors go into choosing an appropriate site for large-scale, long-duration pumped hydro energy storage.
In April 2024, the Department of Energy and Climate released their Hydro Studies Summary report. The report summarises the government’s investigations into energy storage. The report explains why pumped hydro is needed in Queensland’s future energy system and outlines the investigations and studies that led to Borumba and the Pioneer Valley being selected as potential sites for pumped hydro.
Queensland Hydro’s two proposed projects, at Lake Borumba and the Pioneer Valley were considered the most suitable to proceed to feasibility studies (called Detailed Analytical Reports). Both prospective sites allow for a greater scale of energy storage given the topography of the land, high rainfall, favourable geotechnical conditions and greater opportunities to manage social and environmental impacts including avoiding surface impacts to national park.
You can read the government report on Department of Energy and Climate website.
No. Bodies involved in the supply of drinking water are guided by the Australian Drinking Water Guidelines.
Yes. Queensland Hydro will comply with relevant water plans, including ensuring water is available to maintain entitlements and environmental flows.
This includes the recently updated Mary River Water Plan for our proposed Borumba Pumped Hydro Project.
Queensland Hydro’s designs will consider the potential impact of flooding on downstream communities and infrastructure, including the incremental change in these impacts due to pumping or generation during significant weather events. This will ensure the designs manage these potential impacts.
Dams are subject to regular mandatory inspections by registered engineers by the regulator to provide assurance that they comply with safety standards.
We share the desire to protect our natural environment, including the platypus populations and habitats near our projects. Just as we are with the natural environment more broadly, we’re committed to leaving those populations and habitats better off. We know how valued the platypus are by locals and visitors alike.
Right now, we are in the early stages of understanding existing platypus populations. We are drilling some boreholes to understand the geological conditions. We are taking real care to assess any areas where platypus may occur, so that we can avoid interaction with platypus individuals or burrows.
As we move forward and start to more comprehensively study the current environmental baseline, that will include a full study into the current state of play for platypus. We will also work through how our projects could affect platypus, and also to understand what actions could be taken to improve the outlook for platypus.
Eungella’s famous Broken River platypus viewing platforms are well outside the proposed Pioneer-Burdekin Project footprint, approximately 12kms away. This iconic place will not be directly impacted by our work.
The approvals process.
No. Both of our proposed projects need federal and state regulatory approvals to proceed.
The Queensland Government has made an investment decision in relation to the proposed Borumba Project. That allows Queensland Hydro to progress the project and apply for all of the regulatory approvals.
The proposed Pioneer Burdekin Project is still in the investigation phase.
Queensland Hydro is currently undertaking early works for both proposed Projects to enable us to better understand the project area, and complete geotechnical, environmental and social investigations. Queensland Hydro has obtained any approvals needed for those works.
The planning and environmental approvals pathway for major infrastructure projects is not always the same. They typically require federal and state approvals, and those pathways are intricate.
However, those approvals processes generally follow a common approach.
Once the assessment pathway is known, the proposed project moves through the following major steps.
First, the proponent “applies” for approval. Federal and state regulators decide on the best approvals pathway and tell the proponent what information it requires to make a decision (which can be through a Terms of Reference, Request For Information, reference to Guidelines and/ or other similar documents).
Next, the proponent submits information which:
- details the economic, environmental and social baseline (or current state)
- sets out the impact the proposed project could have on the economy, environment and society (informed by a series of detailed studies addressing the regulators’ information requirements)
- proposes management actions that can be taken to avoid, minimise and manage any impacts, and to deliver benefits, and
- proposes offset solutions for any unavoidable impacts, including detailing how offsets can be legally secured and detailing specific offset management plans or other actions.
Regulators then decide whether the information submitted by the proponent is adequate and, if not, requests further or clarifying information. That is usually the time when regulators direct the proponent to publish the information so that the public can formally comment. The proponent is usually required to provide additional information to the regulators stating how it intends to act on the public comments.
Regulators then assess all of the information provided by the proponent and the public and, following their statutory processes (each Act of Parliament has different requirements for what must, can and can’t be considered) to decide whether the impacts are acceptable compared to the benefits of the project and whether to approve the project.
If a Regulator approves a project, it typically imposes conditions of approval which can include the implementation of the various management plans submitted with the project information as well as other requirements, including in relation to reporting and monitoring to ensure that the management actions are effective.
Once a Regulator approves a project, their compliance teams monitor compliance.
In Australia, regulatory processes typically build in participation by the public. There are structured opportunities to comment on things like the Terms of Reference for an Environmental Impact Statement, which can influence the information requirements. There are also structured opportunities to comment on whether the project should proceed, and even to influence environmental management standards or practices. Regulators take account of all relevant public interest considerations when they make their decisions.
Queensland Hydro will consult with communities and other stakeholders as it moves through the processes, as we want that input. We also want to co-design our solutions. In an ideal world, we will have worked closely with you and you will see how we have acted on your input ahead of the formal public comment processes.
You can find more information about the assessment and approvals process on the following sites:
Queensland Government Office of the Coordinator General.
Department of Climate Change, Energy, the Environment and Water.
We refer to two different types of “approvals” for the proposed projects: investment decisions made by the Queensland Government and regulatory approvals from various federal and state government agencies. These are independent processes.
An investment decision from the Queensland Government will usually be informed by the content of a Detailed Analytical Report – which is effectively a feasibility report or business case for a proposed Project. Queensland Hydro delivers the DAR to the Queensland Department of Energy and Climate (DEC).
For regulatory approvals, it depends on the proposed Project activity and the regulatory framework. For example, for the proposed Borumba Project:
- The Federal Minister for Environment and Water is the assessor for federal regulatory approvals for the proposed Project
- The Queensland Coordinator-General is the assessor for state regulatory approvals for the proposed Project
Queensland Hydro expects that it may be the same for the proposed Pioneer-Burdekin Project should we proceed to that stage, but it is too early to know.
The federal and state governments have their own assessment processes they must follow, and which Queensland Hydro must comply with (see above: what is the environmental approvals process). Queensland Hydro does not control the timelines for this process.
If, for example, Queensland Hydro is directed by the federal or state governments to complete an Environmental Impact Statement (EIS) for either project, this process usually takes around two years.
That said, it is critical we take our time with the process to ensure we are thorough. We will not rush through the critical investigations required to complete any documentation for the assessment processes.
You can find more information about the assessment and approvals process on the following sites:
Queensland Government Office of the Coordinator General.
Department of Climate Change, Energy, the Environment and Water.
As described above, the proposed Borumba Project will require approvals from both the federal and state governments. The Project has been split into two phases: exploratory works, which covers surface and underground geotechnical drilling along with a range of supporting works such as road upgrades and bridges, and main works, which includes construction of the two reservoirs, underground power station, tunnels and other associated infrastructure.
For federal approvals under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act), the assessment method for exploratory works will be by Preliminary Documentation, and for main works by an Environmental Impact Statement (EIS). This is because of the smaller scope and footprint of the exploratory works as compared to the proposed main works.
For exploratory works, we are also working with the Queensland Government Coordinator-General to obtain all of the necessary state permits and approvals, including a range of management plans that cover the social, traffic and construction environmental matters. We are also in the process of finalising the impact assessment and offset management plan for preliminary documentation required for the federal approval.
For the main works, the Office of the Coordinator-General (OCG) released the draft Terms of Reference (TOR) for the EIS for public comment in March 2024. The public comment period closed on 28 March 2024 and we expect the OCG to publish the final TOR very soon. The Terms of Reference will enable the EIS to be used for both the Coordinator-General’s decision and the Federal Minister’s separate decision.
As part of the EIS process, Queensland Hydro will be required to demonstrate what avoidance, minimisation and mitigation measures we will have in place to address potential impacts, and will also include a plan for the necessary offsets. There will be an opportunity for the public to provide comment on the EIS, and Queensland Hydro will work with the community to ensure they are given every opportunity to participate and provide their feedback.
It’s too early in the process for an Environmental Impact Statement (EIS) to be required for the proposed Project, because no investment decision has been made by the Queensland Government to progress beyond feasibility work.
Should the Queensland Government make an investment decision on the proposed Project based on Queensland Hydro’s Detailed Analytical Report (DAR), we will then work with the Queensland Government Office of the Coordinator-General (OCG) and the Federal Department of Climate Change, Energy, the Environment and Water (DCCEEW) to understand the next steps, including the requirements for any potential future EISs.
The environmental studies required to inform the DAR are not as numerous or deep as the studies that would be required for an EIS, or any other documents required to support applications for state and federal approvals. We are often asked questions about environmental impacts or solutions that can’t be known at this early stage.
If the proposed projects do not proceed, Queensland Hydro will comply with any obligations to remediate and make the project sites safe.
Land.
Yes. As outlined in the Queensland Government’s Hydro Studies Summary, there are very few suitable sites for large-scale pumped hydro development. For more information, see Why have these sites been chosen for the proposed projects? (in the Environment section above).
Queensland Hydro’s ambition is to ensure that affected landholders are ultimately in a better position as a result of the projects. Queensland Hydro is supporting landholders by:
- remaining flexible and offering various options for access to and acquisition of properties
- engaging independent registered property valuers if landholders elect to proceed with voluntary acquisition
- where possible, allowing landholders to lease properties back until they are required by the project
- providing landholders with a first right of refusal if their land is no longer required for the project, and
- assisting landholders to obtain independent professional advice.
This approach is designed to provide certainty to landholders whilst allowing them to remain on their properties if they wish, and until a decision is made on the project.
Yes. Queensland Hydro has commenced voluntary acquisition of land by engaging in good faith negotiations with landholders who would prefer to sell now rather than wait for certainty about the project proceeding. Queensland Hydro will make an offer to purchase any directly impacted landholder’s property if requested.
If the proposed Pioneer-Burdekin Project goes ahead, affected landholders and tenants will be provided with plenty of notice so they have time to plan their move.
Many landholders have elected to lease their property back from Queensland Hydro until there is more certainty about the project. Once relocation is necessary, Queensland Hydro will work with affected landholders to ensure they are in the best possible position to relocate.
We know that there is more to do in terms of supporting landholders, and Queensland Hydro will work with affected landholders to ensure they are in the best possible position to relocate. We expect that some landholders will want to manage that themselves, and others will look to us for support.
We know that many Queenslanders are experiencing stress due to the ongoing housing shortage. We also know that infrastructure projects can have an impact on the short-term availability of rental properties and tourism accommodation, and long-term on communities. Our commitment is to develop a sustainable strategy that best fits the community context. What we mean is that we want to work with local governments and communities to find the right and flexible solutions that work now, and into the future.
Queensland Hydro’s housing strategy will ensure there are no adverse impacts on housing availability and affordability in our project communities. It will be informed by understanding workforce baselines and needs, and working in partnership with local governments to develop accommodation solutions. For example, we know our Borumba Project’s workforce will fluctuate through the various stages of exploratory and main works, and our housing strategy will reflect these changes.
If our proposed Projects are approved, Queensland Hydro is likely to house a significant portion of the estimated workforce in workers’ accommodation camps. We believe this will reduce the need for workers to occupy homes and other accommodation within the project region. If the outlook for housing was different, for example with high vacancy rates, that would influence us to have a higher proportion of our workforce living in community. It is important to get this right, as it can influence many other things such as local employment, traffic and demand on local government infrastructure.
Queensland Hydro is committed to ensuring our Project’s leave our regions and communities better than we found them.
Consultation and engagement.
Queensland Hydro has been engaging with stakeholders in both proposed project areas since they were announced.
In 2021, the Borumba Project Stakeholder Reference Group (SRG) was established and includes members from 19 representative groups across community, business and environment. In 2023, our engagement team delivered community information sessions, attended community events, held meetings with various stakeholders (in addition to seven meetings with the SRG) and talked to hundreds of individuals over email and by phone.
In 2023, the Pioneer-Burdekin Project established a Stakeholder Reference Group (SRG). Our engagement team has also held numerous Community Connect sessions, attended meetings and events with stakeholders and talked to hundreds of individuals by phone and email.
Our team are regularly out and about in community. Visit our events page to find the next community event in your area. You can also get in contact with our friendly Project teams via phone or email.
Pioneer-Burdekin Project Engagement Team:
[email protected] or 1800 875 009
Borumba Project Engagement Team:
[email protected] or 1800 433 939
Queensland Hydro is also committed to engaging with the Traditional Owners in our respective project areas.
Your voice matters to us. Throughout the process for both proposed projects, there will be numerous opportunities for our community members and stakeholders to have their say.
This includes:
- contacting us via our channels including phone, emails and letters
- through participating in any workshops, information sessions and similar events
- during any public comment periods for environmental and planning approvals
It’s important to understand that some of the public comment periods are not coordinated by Queensland Hydro. For example, public consultation on the Terms of Reference for the Environmental Impact Statement is coordinated by the Office of the Coordinator-General (OCG). In these scenarios, Queensland Hydro will still advise the community through our communications, such as on our social media pages, via email, in-person at events, and on our website.
Queensland Hydro works closely with relevant First Nations groups through an approach founded on working together to achieve mutually beneficial relationships and outcomes. Our ambition is to achieve excellence in cultural heritage management (including implementing any Cultural Heritage Management Plans), and to enable the First Nations groups to realise the project benefits most valued by their communities.
In addition, we aim to increase opportunities for First Nations businesses and First Nations employment. Queensland Hydro does not disclose the details of any arrangements with First Nations groups.
Local benefits.
Queensland Hydro is committed to investing in our local communities over the long term. Our projects, if approved, will bring significant long-term economic, environmental and social benefits to the local communities in which they are proposed. Our goal is to deliver the best outcomes for local communities and all Queenslanders, now and for generations to come.
Benefit sharing in major infrastructure projects can take many different forms. At Queensland Hydro, we see benefit sharing in four main areas: community benefits, regional development, industry engagement and project mitigation.
- community benefits directly improve the wellbeing of the communities we work with, and include supporting the development of recreational facilities, or providing funding for sponsorships. Queensland Hydro announced a Community Benefits Framework in early 2024.
- regional development invests in activities which support improved wellbeing, livability, education, and job opportunities. Queensland Hydro is working on several initiatives to support regional development, including the early stages of an Accommodation Strategy to ensure our proposed projects minimise impact on local housing affordability and supply.
- industry engagement ensures business brought to the region builds capability, particularly for local and First Nations suppliers. On each proposed project, we are expecting up a large workforce during construction and millions of dollars to be invested into the community in local content opportunities. Queensland Hydro is already providing opportunities for local businesses, like Twin Hills Engineering and Drilling in Mackay and Earthland Group in Imbil.
- sometimes there are impacts from our projects that we won’t be able to completely avoid. In such cases, we’ll take steps to mitigate these impacts – focusing on the right outcome for community. For example, if our projects increase traffic or place demands on utilities, we’ll find solutions to minimise these disruptions and prioritise long-term outcomes for local businesses and residents.
Queensland Hydro is committed to developing the next generation workforce, ensuring our local communities have access to the right education pathways for the jobs of tomorrow.
Some of our initiatives include:
- $150,000 committed over three years to the TAFE Queensland Foundation to deliver scholarships to local students pursuing STEM-related training pathways
- $140,000 committed over three years to local high schools for students undertaking STEM subjects in Years 11 and 12
- scholarships and bursaries for second-year engineering students via our partnership with the University of the Sunshine Coast.
Suppliers and industry.
Queensland Hydro is committed to providing opportunities for local and Indigenous businesses and supply chains, and employment for local and Indigenous people in our regions.
Some of our activities to date include:
- participating in capability development and upskilling workshops for businesses in our Project areas to ensure businesses have the skills necessary to competitively tender for opportunities.
- ensuring our tenders adhere to the Queensland Procurement Policy and project-specific Australian Industry Participation Plans, which outlines minimum standards for engaging with local and First Nations businesses.
- including requirements to ensure that our delivery partners report to Queensland Hydro on the quantity of local and First Nations spend, employment and skills and training development throughout the delivery of the works.
Queensland Hydro is playing a critical role in helping to meet the Queensland Government’s renewable energy targets through our proposed projects. We’re creating the opportunity for local resources and construction sector workers to upskill and retrain to ensure we can build a skilled workforce.
We want as many workers as possible to come from Queensland, and from within the energy sector. One of the ways Queensland Hydro is facilitating this is via our partnership with the Resources Centre of Excellence.
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