Pumped hydro energy storage (PHES) is a form of energy storage, where water is moved between an upper and a lower storage to store excess generation and then generate electricity when demand is high. Water is a critical component of a PHES project. Explore the pages below for water-related information for industry.
Beyond water, there are many other considerations when planning a new PHES scheme. For example, new PHES projects with generation capacity of 1 megawatt or more will require planning approval from the Minister for Planning. PHES projects may need to complete an environmental assessment and an environment effects statement may need to be prepared. This is managed through Victoria’s Department of Transport and Planning (DTP).
Other Victorian Government strategies and guidance relevant to water access for PHES can be found on the Victorian government water website, including:
Page last updated: 27/10/26