ACEN pumped storage hydro gets ‘high-priority’ in Australia

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February 7, 2026 | 12:00am

MANILA, Philippines — ACEN Corp.’s $3.6-billion pumped hydro project in Australia has been declared critical infrastructure, securing top-priority status in government planning to ensure timely completion.

The New South Wales (NSW) government has classified the 800-megawatt Phoenix Pumped Hydro as Critical State Significant Infrastructure (CSSI), highlighting its vital role in strengthening Australia’s energy security.

Phoenix, being developed by ACEN Australia, is a large-scale energy storage project proposed near the town of Mudgee in Central West NSW. The project is currently in the early stages of planning.

ACEN Australia managing director David Pollington said the CSSI designation underscores the project’s intended role in supporting the national electricity market and the state’s energy transition push.

“Phoenix offers the kind of bankable, critical infrastructure that gives shape to an evolving energy system, backing in new renewable generation, flattening wholesale energy market price volatility and unlocking opportunity right across the grid,” Pollington said.

A CSSI declaration is granted to “high-priority infrastructure projects” deemed essential to the state for economic, social or environmental reasons, according to the NSW government.

The designation signals that a project is of immediate importance to the public interest and helps fast-track planning and approvals to meet critical delivery timelines.

With a maximum storage capacity of 15 hours, Phoenix will store electricity generated by renewable sources, releasing it on demand when needed.

In particular, the project aims to support renewable energy zones and manage prolonged periods of low wind or solar output.

According to ACEN Australia, the environmental impact statement for the proposed facility is expected to be submitted to the NSW government later this year.

Construction, meanwhile, will begin once planning and environmental approvals are secured, a grid connection offer is obtained, and contractor selection and financing are completed.

As previously disclosed, Phoenix is targeted for commercial operations in 2031.

Earlier, ACEN Australia secured a long-term energy service agreement for the project under the NSW’s electricity infrastructure roadmap.

The long-term deal guarantees greater revenue certainty for the company, helping mitigate key project development risks.

In Australia, the Zobel family’s listed energy platform has over one gigawatt of projects in construction and operation, with over 13 GW capacity in the development pipeline.