New Caledonia is moving forward with plans to develop a pumped storage hydroelectric facility at Tontouta, a project aimed at strengthening energy security, supporting renewable integration and reducing reliance on imported fuels.
Government member Christopher Gygès and Jean-Gabriel Faget, chief executive of Enercal, said the project marks a significant step towards greater energy independence for the French Pacific territory.
The proposed pumped storage hydroelectric plant (PSHP) will store excess electricity generated by solar installations during the day and release it during periods of high demand or when renewable output is low, particularly at night.
Pumped storage systems operate through a closed-loop process involving two reservoirs at different elevations. During periods of surplus generation, water is pumped to an upper reservoir using excess electricity. When demand rises, the stored water is released back to a lower reservoir, driving turbines to generate power.
Officials said the facility is expected to deliver around 900 megawatt-hours of storage capacity, equivalent to roughly 35% of annual electricity consumption in New Caledonia excluding the metallurgy sector, or about a quarter of the needs of Société Le Nickel (SLN).
The project could avoid an estimated 225,000 tonnes of carbon dioxide emissions annually — comparable to removing around 100,000 cars from the road — while reducing fuel consumption by approximately 65,000 tonnes per year.
Construction is expected to take four years, with commissioning targeted for 2032. The plant is designed for an operational lifespan exceeding 60 years. During construction, the project is expected to support around 130 jobs, with approximately 15 permanent roles once operational.
Faget said the project would address the intermittency of renewable energy sources such as solar and wind, which are dependent on weather conditions and can result in unused surplus generation.
“Thanks to this facility, surplus solar energy produced during the day can be stored and used in the evening and at night, whereas currently it is either sold or lost,” he said.
Currently, part of New Caledonia’s excess solar production is sold to SLN, while the remainder is not stored but still compensated, contributing to higher electricity costs.
Authorities said the project would also support the decarbonisation of the territory’s energy-intensive metallurgy sector by providing a more stable and potentially lower-cost electricity supply.
Gygès said a call for expressions of interest has been launched to enable local companies to participate in the project, which is expected to inject around 22 billion Pacific francs into the domestic economy.
“All types of work will be involved, from engineering to earthworks, ensuring significant local economic benefits,” he said.
Beyond its economic impact, officials described the project as a strategic investment to reduce exposure to global energy market volatility, which has historically affected the competitiveness of New Caledonia’s mining industry and household electricity costs.
Preliminary design studies will be co-financed by the French state under the New Caledonia refounding pact.
Under the current timeline, detailed design and financing studies are scheduled for 2026–2027, with construction expected to begin in 2028 and commissioning planned for 2032.
