Genex Power Abandons Wind Farm in Queensland’s Kidston Hydro Project
Genex Power, a developer specialising in renewable energy and storage, has decided to remove the wind element from its planned hybrid project at Kidston in Queensland. This decision comes after a comprehensive evaluation revealed that the financial aspects of developing a wind farm at the rugged, isolated site were untenable.
CEO Craig Francis remarked that the expenses associated with establishing the wind farm were simply too prohibitive, even for a scaled-down project aimed at producing 120 megawatts (MW). Despite securing long-term power purchase agreements (PPAs) with major companies such as EnergyAustralia and Stanwell, the logistical challenges at the site rendered the wind initiative commercially unviable, as he discussed with Renew Economy on Monday.
Change of Plans Due to Financial Viability
Francis confirmed that the agreements made in 2023—one with EnergyAustralia for 30% and another with Stanwell for 50% of the anticipated wind output—will no longer progress. While Genex, which was previously listed on the Australian Stock Exchange and is now under the ownership of Japanese firm J-Power, remains committed to pursuing a wind project elsewhere, it is looking to enhance its portfolio, which is currently focused on solar, battery storage, and pumped hydro systems.
Focus on Battery Expansion and Pumped Hydro Projects
Instead of the wind project, Genex plans to advance with an upgraded battery capacity of 200 MW, designed to offer four hours of storage. This development aims to leverage the existing 275 kilovolt (kV) power line that links the Kidston site to Townsville. Moreover, the company is also striving to complete Australia’s first pumped hydro facility in four decades, specifically a 250 MW system set to operate for eight hours using a decommissioned open pit gold mine located about 285 km west of Townsville.
Nonetheless, this pumped hydro project has faced several setbacks, with current estimates pushing the completion and commissioning date to the third quarter of next year, a delay from its initial expected launch in 2026. The original vision for the Kidston project included a combination of solar and wind alongside the hydro system. The operational 50 MW solar farm was intended to be complemented by the now-cancelled 258 MW wind project (later reduced to 120 MW) and an additional 250 MW solar facility. However, plans for both the wind and solar expansions have been scrapped.
Delays and Future Developments
Whilst Genex has largely avoided the significant cost overruns plaguing the Snowy 2.0 pumped hydro initiative, the Kidston development has encountered its own delays. In 2022, progress was hindered when drilling operations encountered water-bearing rock, necessitating the closure of drill holes, and industrial action has further impeded advancement.
Currently, only one other private pumped hydro project in Australia has received development approval: Yancoal’s Stratford initiative located in New South Wales (NSW), which recently secured governmental approval, as noted by project tracker Renewmap. Additionally, five other projects in NSW are undergoing development approval processes, with most waiting for decisions spanning three to five years.
