Pumped hydro project gets govt backing

The federal government has stumped up $54 million for the development of Australia's first solar farm with a large-scale pumped hydro storage.

The Turnbull government is putting money where its mouth is with $54 million for a large-scale solar development with the potential for pumped hydro storage.

Prime Minister Malcolm Turnbull has nominated pumped hydro as one renewable energy source that could help stabilise the nation's electricity grid.

Co-locating a large-scale solar farm with a large-scale pumped hydro storage project at Genex Power's Kidston Renewable Energy Hub, 270km north-west of Townsville, will be an Australian first.