EnergyAustralia undertook the project to determine the technical and economic feasibility of a seawater PHES plant located to the south-west of Port Augusta in South Australia.
Report extract
The Cultana Pumped Hydro Project feasibility study successfully delivered the outcomes of the Activity. The study has demonstrated that the Project is technically and economically feasible under a range of plausible scenarios and can address the market need for energy firming to facilitate the growth of renewable energy in South Australia.
This study has demonstrated that, subject to further detailed engineering design, the technical challenges in the application of PHES technology to seawater can be addressed. Secondly, based on the revenue streams identified, the Project has been found to be economically viable with a post-tax nominal rate of return of 8% to 12%, depending on a range of scenarios involving capital costs and revenue outcomes.
While the feasibility study findings demonstrate the technical and economic feasibility of the project, it is unique and still requires a large body of work to reduce uncertainty of both project revenues and costs.
