# Alinta Energy Scraps $1.8 Billion Oven Mountain Hydro Project in NSW

> Alinta Energy abandoned its $1.8 billion Oven Mountain Pumped Hydro project in northern New South Wales, Australia, on October 22, 2026, citing economic and timing challenges including a critical transmission line.

By PrimaryBrief newsroom · Published 2026-10-25T08:37:29.569283Z
Canonical: https://primarybrief.com/article/alinta-energy-scraps-1-8-billion-oven-mountain-hydro-project-in-nsw-7bb39b1c

Alinta Energy officially announced on October 22, 2026, its decision to abandon the $1.8 billion Oven Mountain Pumped Hydro project in northern New South Wales, Australia [1][2]. The company attributed the cancellation to "economic and timing challenges on key elements of the project, including a critical transmission line," which it stated rendered the initiative unviable [1][3][9].

This decision halts a significant renewable energy development that aimed to power over 600,000 homes, highlighting persistent hurdles for large-scale green infrastructure in Australia [1][9]. The cancellation impacts regional economic prospects and potential employment opportunities, affecting local communities in New South Wales [1][10].

## What the Records Show

The Oven Mountain Pumped Hydro Energy Storage project was planned as a 900-megawatt (MW) facility with a storage capacity of 7.2 gigawatt-hours (GWh) [1][6][9]. Located near Georges Junction, approximately 60 kilometers southeast of Armidale, the project was situated within the New England Renewable Energy Zone [1][6]. It was designed to provide up to 12 hours of energy storage, or 8 hours of dispatchable energy at full generation [7][9]. The NSW Government had declared the project "Critical State Significant Infrastructure" (CSSI) in September or October 2020, suggesting an expedited planning pathway [4][7][8]. The initial estimated cost was around $1.8 billion, later amended to $1.97 billion [1][2][4]. The NSW Government had also provided $10 million to the project through its Pumped Hydro Recoverable Grants Program [4]. The facility was intended to connect to an existing Transgrid transmission line, Line 965, running between Kempsey and Armidale, requiring infrastructure such as a substation and 330 kV transmission lines [11].

## The Timeline

The project moved through several development stages. The NSW Government designated it Critical State Significant Infrastructure in late 2020 [4][7]. Alinta Energy submitted a Scoping Report in January 2021, and the NSW Government subsequently issued the Secretary's Environmental Assessment Requirements (SEARs) in February 2021 [4]. Roughly two years before its cancellation, Alinta Energy engaged Malaysia's Gamuda and Spain's Ferrovial Construction as Early Contractor Involvement partners to advance the design [9][11].

## What Changed and For Whom

Alinta Energy cited

## Evidence cited
1. $1.8 billion pumped hydro project in northern NSW scrapped due to economic challenges. (ssbcrack.com) — https://ssbcrack.com/
2. Pumped hydro project scrapped after developer deems it unviable — QuickNewsFeed. (quicknewsfeed.online) — https://quicknewsfeed.online/
3. Home (ompshydro.com.au) — https://ompshydro.com.au/
4. Oven Mountain Pumped Hydro Energy Storage (infrastructurepipeline.org) — https://infrastructurepipeline.org/
5. Oven Mountain Pumped Hydro Energy Storage (nsw.gov.au) — https://www.nsw.gov.au/major-projects/oven-mountain-pumped-hydro-energy-storage
6. Oven Mountain Pumped Hydro Energy Storage (aecom.com) — https://www.aecom.com/au/projects/oven-mountain-pumped-hydro-energy-storage/
7. Oven Mountain Pumped Hydro Energy Storage Project - EMM Consulting (emmconsulting.com.au) — https://emmconsulting.com.au/projects/oven-mountain-pumped-hydro-energy-storage-project/
8. Oven Mountain Pumped Hydro Energy Storage project (nsw.gov.au) — https://www.nsw.gov.au/planning-and-environment/have-your-say/major-projects/oven-mountain-pumped-hydro-energy-storage-project
9. Alinta scraps 900-MW Aussie pumped storage project due to rising costs | Renewable Energy News | Renewables Now (renewablesnow.com) — https://renewablesnow.com/news/alinta-scraps-900-mw-aussie-pumped-storage-project-due-to-rising-costs-1579290/
10. Alinta scrapped a $1.8b pumped hydro project. Armidale's mayor says there are 'too many environmental hoops' : r/AusNewsToday (reddit.com) — https://www.reddit.com/r/AusNewsToday/comments/17dt6v3/alinta_scrapped_a_18b_pumped_hydro_project/
11. Oven Mountain Pumped Hydro Energy Storage Project - ICN (icn.org.au) — https://icn.org.au/projects/oven-mountain-pumped-hydro-energy-storage-project