New England Renewable Energy Zone
Preferred bidder announced
Greenfield (construction) or brownfield (government asset divestment) projects needed or likely to occur within the next five years, but is not formally proposed by a state, territory or major local government.
The project or divestment is supported by a state, territory or major local government, is subject to studies or other processes (such as pre-feasibility or scoping studies or business case development), and is likely to proceed to formal announcement.
The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.
The project or transaction is under procurement (such as a call for Expressions of Interest, requests for tender, or another offer to the market).
Preferred bidder announced
A preferred bidder has been selected and is in exclusive negotiations.
Projects that have progressed to contractual close remain on ANZIP for 12 months.
ANZIP is focused only on major infrastructure activity, above the following thresholds:
Construction projects: > AUD$300m
Investable greenfield & brownfield: > AUD$100m
All greenfield and brownfield projects and divestments: > NZD $100 million
The New England Renewable Energy Zone (REZ) will be developed in the area surrounding Armidale in the New England region of NSW and will aim to support the development of up to 8,000 megawatts of renewable generation capacity. The REZ was outlined in the NSW Government's 2019 Electricity Strategy, identifying its proximity to the existing interconnector between NSW and Queensland, numerous potential pumped hydro sites and significant wind resources as key factors determining the REZ's location.
Transmission upgrades to support the REZ will be proposed and developed over the coming years.
The Australian Energy Market Operator's (AEMO) 2020 Integrated Systems Plan (ISP) estimates that Stage 1 of the transmission component for the New England REZ has a cost of between $720 million and $1.33 billion, with a modelled cost of $1.025 billion.
AEMO's 2020 ISP estimates that Stage 2 of the transmission component has a cost of between $220 million and $420 million, with a modelled cost of $320 million.
The scope of works for each stage of the network expansion is yet to be identified.
2031 - 2036: Expected delivery timeframe, subject to acceleration by NSW Government to meet announced target for development of the REZ
Federal Government: $995,000 AUD (towards feasibility study)
NSW Government: $79,000,000 AUD (towards planning)
$79 million was allocated towards planning for the New England REZ. The Australian Renewable Energy Agency (ARENA) also announced $995,000 in funding to TransGrid to support a $3.45 million feasibility study into the potential development of new transmission capacity.
July 2020: In its 2020 Integrated System Plan, AEMO identified New England REZ network expansion as a critical project and provided updated costings for Stages 1 and 2 of the transmission component.
July 2020: NSW Government announced it will proceed with the REZ.
Last reviewed: 14/08/2020