The Hunter-Central Coast Renewable Energy Zone (REZ) has an intended transfer capacity of one gigawatt and is expected to enable the connection of approximately 1.8 GW of new renewable generation and storage projects. The REZ is to be developed in the region between and around Muswellbrook and Newcastle, and the northern areas of the Central Coast.
The scope of the Hunter-Central Coast REZ network infrastructure project includes:
- upgrading approximately 85 sub-transmission lines
- constructing 18 kilometres of new underground fibre optic in the Upper Hunter
- building two new energy hubs (substations)
- augmenting several existing energy hubs (substations), and
- augmenting underground fibre optic circuits in the Upper Hunter region.
The project will involve three portions:
- Portion One – The Upper Hunter secondary systems modernisation which will provide 350 megawatts (MW) additional network capacity and was scheduled for completion in late-2025.
- Portion Two – Muswellbrook network rearrangement, Singleton to Kurri 132 kilovolt (kV) link, and installation of a communications link across the Hawkesbury River, which will provide 280 MW additional network capacity and is scheduled for completion in June 2028.
- Portion Three – Construction of a new Antiene 132kV switching station and Antiene to Singleton 132kV link, which will provide 370 MW additional network capacity and is scheduled for completion in July 2028
The capacity of the REZ is expected to increase over time with the retirement of coal-fired power stations, re-purposing of mining land, and the growth of offshore wind.
Key Dates
| Dec 2021 | ROIs for the development of projects in the REZ opened. |
| Feb 2022 | ROIs for the development of projects in the REZ closed. |
| Dec 2024 | Preferred network operator selected |
| Dec 2025 | Contract Award |
| 2026 | Expected Construction Commencement |
| Dec 2028 | Expected Construction Completion |
Procurement
| Procuring Agency: | EnergyCo |
| Shortlist: | Ausgrid |
| Successful Tenderer: | Ausgrid |
| Procurement note: | EnergyCo has signed a Project Deed with Ausgrid to deliver the network infrastructure needed for the Hunter-Central Coast REZ. As network operator, Ausgrid will be responsible for financing, designing, constructing, operating and maintaining the Hunter-Central Coast REZ network infrastructure. John Holland has been selected by Ausgrid as delivery partner for the project. |
| Related contracts: |
PROJECT HISTORY
| Dec 2021 | EnergyCo NSW opened Registrations of Interest for generation and storage projects, and network development projects in the REZ, closing on the 4th of February 2022. |
| Feb 2022 | The NSW Government announced that 24 solar energy projects, 13 onshore and seven offshore wind energy projects, 35 large-scale batteries, and eight pumped hydro projects were received during the ROIs process, amounting to 40 gigawatts. |
| Dec 2022 | The NSW Government formally declared the Hunter Central-Coast REZ and established EnergyCo as the Infrastructure Planner. The declaration confirmed the scope of the geographical area from the Upper Hunter to Cessnock, Maitland, Newcastle, and Lake Macquarie. |
| Oct 2023 | EnergyCo has called for Expressions of Interest to engage large scale renewable energy generator and storage project developers as Generator Design Partners for the early design and development phases of the REZ, closing on 27 November. |
| Dec 2024 | EnergyCo released its inaugural Corporate Strategy, which included a goal to have the Hunter-Central Coast REZ complete by 2030. |
| Dec 2024 | EnergyCo selected Ausgrid as the preferred network operator for the Hunter-Central Coast REZ, signing a commitment deed. |
| Dec 2024 | Ausgrid has awarded a $140 million contract to Genus to deliver early services and construction works for the project. Separately, John Holland was selected by Ausgrid as delivery partner for the project. |
| Mar 2025 | The project was included in the Federal Government's inaugural Renewable Energy Priority List. The Priority List aims to provide coordinated support through Federal, state and territory regulatory and environmental approval processes on a case-by-case basis and provide a 'faster to yes, faster to no' approach to regulatory approvals. |
| Aug 2025 | The Australian Energy Regulator has released a preliminary position paper for the REZ network infrastructure project revenue determination for the 2026-31 regulatory period. Submissions to the paper are due 4 September. |
| Sep 2025 | The NSW Government has granted planning approval for the project. |
| Dec 2025 | The NSW Government announced that EnergyCo has signed a Project Deed with Ausgrid to deliver the project. |
| Dec 2025 | The Australian Energy Regulator (AER) made its final revenue decision regarding the amounts payable to Ausgrid as Network Operator for the Hunter-Central Coast REZ. The AER published its decision in December, following confirmation from EnergyCo that financial close for the project had been reached. The AER’s final determination considers $615 million in capital expenditure as a prudent, efficient, and reasonable forecast for the period between 2026 and 2031. This figure includes $285 million in capital costs incurred before 2026, as Ausgrid was contractually required to commence early works before the regulatory period. The AER has determined Ausgrid can recover $189.6 million in revenue over this timeframe, a decrease of $14 million from Ausgrid’s proposed revenue. |
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Resources
Government resources
2023/02/23 Notice of Proposal to Delcare an Area - Pacific Ocean off Hunter, NSW2022/12/06 Renewable Energy Zone (Hunter-Central Coast) Order
National Renewable Energy Priority List
Hunter-Central Coast Renewable Energy Zone Network Infrastructure Project (non-contestable) Preliminary position paper
