Genex Power has stepped closer to realising its 250MW Kidston pumped storage hydro project with the signing of a binding energy storage services agreement with EnergyAustralia. The 30-year agreement includes a 10-year initial term and two subsequent 10-year options.

Genex will provide the full operational dispatch rights for the K2-Hydro plant to EnergyAustralia in exchange for a fixed annual rental payment, indexed over the total term. At the end of the 30-year term, EnergyAustralia will have the right to buy Genex’s share of the project.

“The K2-Hydro project will be the first pumped storage hydro project in the National Electricity Market in almost 40 years, and the first to be developed under private ownership,” said Genex CEO James Harding.

“It will create over 500 jobs during construction and deliver significant economic benefits to Queensland through providing reliable generation for the grid and applying downward pressure on wholesale electricity prices.”

Other stakeholders in the project include the Northern Australia Infrastructure Facility and Queensland Government.

“We have been extremely pleased with the support of our stakeholders and counterparties during this period and now believe, with today’s signing of the energy storage services agreement with EnergyAustralia, that we have the basis to move forward to financial close,” Harding said.

The agreement with EnergyAustralia is subject to Kidston achieving financial close before the end of this year.