Power storage projects get taxpayer cash

As the Turnbull government emphasises the need for more stability in the electricity grid, taxpayer funds have been given to two new storage projects.

The Clean Energy Finance Corporation has given $54 million for a large-scale solar project in north Queensland that is expected to lead to a pumped-hydro storage scheme.

The Genex Power project is based around the old Kidston gold mine north of Townsville and will be built in two stages: a 50 megawatt solar farm - enough to power 26,500 homes - followed by a 250MW pumped hydro storage facility.

Prime Minister Malcolm Turnbull has specifically highlighted pumped hydro as a power storage capability Australia should consider.

The CEFC said the innovative project would extend the life of a disused mine and offered an example that could be used in other mine sites around the country.

The Australian Renewable Energy Agency also announced on Tuesday it was giving $4.1 million to Sydney-based company Ecoult to work on its cutting-edge battery technology and help fully commercialise it.

The company, a CSIRO-offshoot, plans to use the money to increase the performance of its batteries and make it compatible with a wider range of products.

Ecoult has signed a deal with India's largest battery manufacturer to make and distribute its UltraBattery throughout that country and south Asia.