The New England REZ Transmission Project - Network Operator contract includes the design, construction, financing, operation and maintenance of the transmission infrastructure required to connect generation and storage projects in the New England REZ to the National Electricity Market at Bayswater Power Station near Singleton.
The New England REZ Transmission Project will deliver:
- approximately 220 kilometres of dual 500-kilovolt (kV) transmission lines from Bayswater Power Station substation to the New England REZ
- approximately 100 kilometres of 500-kV transmission lines between three energy hubs in the REZ
- approximately 40 kilometres of 330-kV transmission lines between the energy hubs and to existing transmission lines
The transmission infrastructure is to be delivered in two stages, with Stage One delivering 2.4 gigawatts (GW) of transfer capacity by 2032 and Stage Two delivering 3.6 GW by 2034.
The energy hubs will include:
- the North Hub, located approximately 16 kilometres north west of Armidale (Stage One will be delivered as 330-kV and upgraded to 500-kV in Stage Two)
- the Central Hub, located approximately eight kilometres west of Kentucky
- the Central-South Hub, located approximately 13 kilometres west of Walcha (Stage One delivered as 330-kV and upgraded to 500-kV in Stage Two), and
- the East Hub, located approximately 13 kilometres south east of Uralla.
Following the delivery of Stages One and Two, Stage Three – comprising an additional two GW of transfer capacity – is planned to be developed. Stage Three will be subject to separate approvals and procurement, with augmentation of the existing contract for Stage One and Two to be considered.
In addition to the Network Operator Package, EnergyCo will procure packages of enabling and early works, and brownfield connections, to support the delivery of the transmission infrastructure.
Key Dates
| Jul 2020 | Project Announcement |
| Mar 2025 | ROIs Open |
| Apr 2025 | ROIs Close |
| 2027 | Expected Contract and Financial Close |
| Jun 2031 | Expected Construction Completion: Stage One |
| Jun 2033 | Expected Construction Completion: Stage Two |
Funding contributions
| Federal Government | |
| NSW Government | |
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The Federal Government's contribution comes through the Australian Renewable Energy Agency (ARENA) to TransGrid to support a $3.45 million feasibility study into the potential development of new transmission capacity. |
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Procurement
| Procuring Agency: | EnergyCo |
| Procurement note: | EnergyCo’s preferred model for the network operator is an ‘enhanced’ regulated concession model where the selected consortium will design, construct, finance, operate and maintain the REZ’s network infrastructure for a specified period. |
PROJECT HISTORY
| Jul 2020 | In its 2020 Integrated System Plan, AEMO identified New England REZ network expansion as a critical project and provided updated costings for Stages One and Two of the transmission component. Stage One of the transmission component has an estimated cost of between $720 million and $1.3 billion, with a modelled cost of $1.025 billion. Stage Two of the transmission component has an estimated cost of between $220 million and $420 million, with a modelled cost of $320 million. |
| Oct 2023 | APA Group and EDF Group announce they have signed a Memorandum of Understanding to bid on the project. |
| Dec 2023 | The project is listed as 'actionable' in the Draft 2024 Integrated Systems Plan. The full capacity timing as advised by the proponent was listed as September 2028 and cost estimates are listed as $1.84 billion ± 50%. |
| Mar 2024 | EnergyCo updated its study corridor for the New England REZ transmission project. The original study corridor included a south hub and was 39 kilometres longer than the revised corridor. The new corridor also includes corridor realignment near Loomberah, Dungowan, Woolomin, and Mulla Creek, as well as realignment between the Central and East hubs. |
| Mar 2024 | EnergyCo opened a Request for Tender for a Road Upgrade advisor, closing on 28 March. |
| Jun 2024 | The 2024 ISP provided an updated cost and timeline for the project. The project has been split into three stages. Stage One has a total estimated cost of $1.8 billion and expected to be completed by June 2031, with Stage Two expected to be completed by June 2033. The total cost of the total project, which includes future stages, is expected to be $3.7 billion (+/- 50 per cent). The ISP also introduces a potential 330 kV transmission line. No expected timelines for Stage Three have been announced. |
| Jul 2024 | EnergyCo submitted a Scoping Report for the project to the NSW Government, seeking the Secretary's Environmental Assessment Requirements. The Scoping Report includes a preferred study corridor based on consultation and field investigations since June 2023 and details of the proposed project's scope and delivery stages. |
| Sep 2024 | The NSW Government issued the Secretary's Environmental Assessment Requirements for the project. |
| Dec 2024 | EnergyCo has released details for the New England Renewable Energy Zone (REZ) network operator procurement. EnergyCo’s preferred model for the network operator is an ‘enhanced’ regulated concession model where the selected consortium will design, construction, finance, operate and maintain the REZ’s network infrastructure for a specified period. EnergyCo announced the proposed Network Operator contract procurement timeline, with Registrations of Interest expected to commence in March 2025, EOIs in April/May and RFPs in September/October. |
| Mar 2025 | EnergyCo commenced the Registrations of Interest process for the network operator, closing 14 April. |
