Construction on the Drakensberg Pumped Storage Hydroelectricity started in 1974 and was completed by 1981.

Four dams are involved in the scheme; the Driekloof Dam (a branch of the Sterkfontein Dam), the Kilburn Dam, the Woodstock Dam and the Driel Barrage. Electricity generation equipment is located between Driekloof Dam and Kilburn Dam. Since the Driekloof Dam/Sterkfontein Dam also forms part of the Tugela-Vaal Water Project some of the water pumped to Driekloof Dam might end up flowing to the Vaal Dam and not be available for return to the Kilburn Dam. The Woodstock Dam and Driel Barrage is used to supply this additional water to Kilburn Dam when required.

The Drakensberg Pumped Storage Hydroelectricity provides for up to 27.6 GWh of electricity storage in the form of 27,000,000 cubic metres (950,000,000 cu ft) of water. The water is pumped to Driekloof during times of low national power consumption (generally over weekends) and released back into Kilburn through four 250 MW turbine generators in times of high electricity demand.