A major pumped hydro project with the potential to power up to 120,000 homes has been approved to transform a former mining site into a renewable energy generator.
The $1.8 billion Stratford Pumped Hydro and Solar project in the Gloucester Valley will boost energy security and bring investment and jobs to the Hunter, with up to 350 construction jobs and 10 ongoing jobs.
This project is touted to bring lasting benefits for the region, including around $18.2 million over the life of the project for community and infrastructure projects.
That will be delivered through a voluntary planning agreement with Mid Coast Council.
Minister for the Hunter Yasmin Catley said this is exactly what planning for the future looks like.
"We are taking a former mine site and giving it a new purpose powering up to 120,000 homes across NSW.
"This is a major vote of confidence in our region.
"We have the land, infrastructure, and skilled workforce needed to deliver the next generation of major energy projects."
Located about 100 kilometres north of Newcastle, the project will sit on the Stratford Mining Complex site.
Coal mining operations ended there in 2024, with the project billed as providing a productive and innovative future for the post-mining land.
The project by Gloucester Coal Pty Ltd, a subsidiary of Yancoal Australia Limited, includes a 300 megawatt (MW) pumped hydro power station with 12 hours of energy storage and a 320 megawatt solar farm.
To generate electricity, water will be transferred between a new upper reservoir and an existing dam via a tunnel. Water for the initial reservoir will be sourced from the existing mine site.
It will provide "firming" energy by storing surplus electricity generated during the day and releasing it to generate electricity at peak times in the evening.
It is forecast to deliver around 13 per cent of the state's 2034 long duration storage target.
About 60 per cent of the proposed solar farm footprint is on land previously disturbed as part of the Stratford Mining Complex.
Another 36 per cent falls on land mapped as non-native vegetation due to prior clearing for agriculture.
The project will utilise existing mine infrastructure, including existing car parks, roads, offices, workshops, laydown areas, services and utilities and upgrade the existing Stratford East Dam for the pumped hydro lower reservoir.
Declared critical state significant infrastructure (CSSI) in June 2024, the project is a crucial component of the NSW government's Electricity Infrastructure Roadmap, a 20-year plan to diversify the energy generation mix and provide energy security as NSW moves away from coal-fired power.
The $1.8 billion clean energy hub could be operating as early as 2029.
NSW Minister for Planning and Public Spaces Paul Scully said this is the state's first pumped hydro project to secure final planning approval in six years.
"It's a sign of our commitment to a clean energy future and the beginnings of an evolution of jobs and energy generation in the Hunter to power homes and businesses," he said.
"Projects like Stratford Pumped Hydro also show how we can make the most of former mining sites and create new jobs and industry which will help to drive the region's economic growth for decades to come."
Since March 2023, the Labor government has approved 52 renewable energy projects that, when built, will generate enough electricity to power 5.1 million homes.
There are currently more than 57 renewable energy, storage, pumped hydro and transmission projects under assessment in NSW.
If approved, these 12.9 gigawatts of generation projects could produce enough electricity to power about 6.68 million homes.
A further 107 projects, including solar, wind, battery storage and pumped hydro projects are at various stages in the planning pipeline.
