Wala Wala pumped hydro near Tamworth enters the NSW and federal approval process

A new pumped hydro energy storage project in the hills south-east of Tamworth has formally entered the planning system. EDF power solutions Australia's Wala Wala Pumped Hydro Energy Storage Project, in the Dungowan Valley about 45 km from Tamworth, is designed to generate at 300 to 400 MW and store around 3,000 MWh of energy, enough for up to 10 hours of generation.

In September the NSW Department of Planning, Housing and Infrastructure issued the project's assessment requirements, and on 1 October the federal referral came back with a clear path: the project will be assessed once, through the NSW process, under the bilateral agreement between the two governments. EDF is now preparing its environmental impact statement.

Project at a glance

How the project works

Pumped hydro is a rechargeable battery made of water and gravity: surplus power pumps water uphill, and when power is needed the water runs back down through turbines.

At Wala Wala, both reservoirs will be new and built off-river, so the system runs as a closed loop rather than damming a creek. The upper reservoir sits on high ground about 2 km north-east of the lower one, which will be beside Dungowan Creek. The scoping report gives the upper reservoir an active storage of 3 GL and the lower a storage volume of about 3.4 GL, with their full supply levels close to 500 m apart. Tunnels and shafts will link them to an underground powerhouse housing two reversible pump-turbines. At 300 MW, 3,000 MWh works out to 10 hours of generation; at 400 MW it would be about seven and a half hours.

About 5 GL of water will be needed for the first fill, with smaller top-ups after that to cover evaporation and seepage. EDF's investigations point to Dungowan Dam, which supplies Tamworth's drinking water, as the likely source, by pipeline. The scoping report says the final arrangement will be informed by technical studies and ongoing discussions with Tamworth Regional Council, and must leave Tamworth's long-term water security unaffected.

The project will connect to the grid through a new switchyard and a high-voltage line running north-west to Transgrid's existing 330 kV Line 85 near Bendemeer. An option to connect to EnergyCo's planned New England Renewable Energy Zone transmission instead will be explored if the timing of the two projects lines up.

Who is behind it

EDF power solutions Australia is part of France's EDF Group. The project has been in development since 2014; EDF Group acquired it and agreed to co-develop it with Australian-owned companies Mirus Energy and Energy Estate. The scoping report was prepared by EMM Consulting.

The project was renamed after EDF's engagement with Traditional knowledge holders. The scoping report says Wala Wala is an Aboriginal name meaning "the place of many storms".

The approvals, in plain terms

• Scoping report and SEARs: a scoping report is the developer's first outline of a project and the issues it expects to study. The department replies with the Secretary's Environmental Assessment Requirements, or SEARs, which set out what the EIS must cover. Wala Wala's SEARs were issued on 18 September 2026.
• EPBC referral: under the federal Environment Protection and Biodiversity Conservation Act 1999, projects that could affect matters of national environmental significance are referred to the Commonwealth. Wala Wala's referral was accepted on 3 September 2026. On 1 October the National Environmental Protection Agency decided it is a "controlled action", meaning it needs federal approval, because of listed threatened species and communities.
• EIS: the environmental impact statement is the detailed study of the project's effects, and it is publicly exhibited for comment before any decision. Under the bilateral agreement, one NSW assessment will also serve the federal decision.

Readers following pumped hydro elsewhere can compare progress with Queensland's Borumba Pumped Hydro.

What's next

EDF is preparing the EIS, with technical studies and detailed design continuing. Once lodged, the EIS will go on public exhibition through the NSW Major Projects Planning Portal, where anyone can follow the project and make a submission. If approved, main construction is expected to start in 2029, with Wala Wala operating from 2033.

Published 30 October 2026 · Updated 28 October 2026