Questions have been raised about a planned pumped hydro dam to be built near a culturally significant site. 

Energy Australia wants to build a pumped hydro dam on Mount Walker at Lake Lyell near Lithgow.

Pumped hydro systems move water uphill during the day when solar and renewable energy is plentiful and release it downhill through a turbine when that energy is needed.

The technology can help smooth out the peaks and troughs in energy supply that become more of a problem with more wind and solar energy infrastructure.

But the local Wiradjuri community says that Mount Walker's vantage point as one of the highest peaks in the district makes it a culturally important site for traditional men’s business.

Energy Australia is planning a 4.4-gigalitre concrete reservoir with walls up to 40 metres high on Mount Walker.

Additionally, the Concerned Lithgow Community Group says the constant fluctuation in dam height would ruin popular tourist spots, and impact on local land values.

Energy Australia says the project is still being assessed, including an investigation of cultural concerns.