Project

NSW Renewable Energy Zones

PROJECT STATUS
Announced
NSW Renewable Energy Zones

The NSW Government has committed to develop five Renewable Energy Zones (REZ) in the state, beginning with a pilot Central-West Orana REZ, before additional zones are added in the South-West, New England, Irrawarra and Hunter-Central Coast regions.

The REZs are intended to encourage investment in renewable generation and storage projects. These will need to be supported by transmission upgrades, which the NSW Government expects to support in line with the 2018 NSW Transmission Infrastructure Strategy.

The NSW Government estimates that the REZs could foster up to $20.7 billion in investment in the five regions. This estimated investment is not reflected in ANZIP's forward pipeline. Individual investments within the REZs will be tracked through ANZIP as they are planned, developed and delivered.

Key Dates

Nov 2020 Project Announcement
2022 Expected commencement of first auction for REZ projects

Funding contributions

NSW Government

The NSW Government's contribution is to develop the REZ, including the establishment of the Energy Corporation of NSW, which will coordinate development of the REZ.

The 2021-22 NSW Budget allocated a total of $380 million to deliver the roadmap, including $164 million over four years for capital works.

PROJECT HISTORY

Nov 2020 The NSW Government released its Electricity Infrastructure Roadmap, outlining the steps required to support the transition of the electricity system to a much higher level of renewable generation. The Roadmap highlights the need to coordinate investment into generation, transmission and storage infrastructure in NSW over the next 20 years as coal-fired power stations reach their scheduled retirement.
Jun 2021 The 2021-22 NSW Budget allocated a total of $380 million to deliver the roadmap, including $164 million over four years for capital works.
Nov 2021 The Australian Energy Regulator (AER) was appointed the regulator of the NSW Renewable Energy Zones under the Electricity Infrastructure Investment Act 2020 (NSW). The AER will be required to make five-year revenue determinations for network infrastructure projects authorised by the independent Consumer Trustee for each REZ.
Jun 2022 Registrations of Interest for renewable generation and storage projects in the Illawarra REZ opened, closing 22 July. Separately, the NSW Government called for Expressions of Interest for Commercial Advisory Services for the project, closing 17 June.
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
High Priority Initiative (medium-term, 5-10 years)
Resources
Media releases
2020/11/09
2021/11/15
Project pages
Energy NSW
Major Contract

NSW New England REZ

PROJECT STATUS
Announced
NSW New England REZ

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 scope of works for each stage of the network expansion is yet to be identified. The precise location of the New England REZ will be determined through industry and community consultation, and further input gained during the tender process.

Key Dates

Jul 2031 Expected construction commencement of projects in the REZ.
Jul 2036 Expected construction completion of projects in the REZ.

Funding contributions

Federal Government
NSW Government

The Federal Government's contribution comes through the Australian Renewable Energy Agency (ARENA) to TransGrid to support a $3.5 million feasibility study into the potential development of new transmission capacity.

PROJECT HISTORY

Nov 2019 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.
Jul 2020 The NSW Government announced it will proceed with the REZ and in its 2020 Integrated System Plan, AEMO identified New England REZ network expansion as a critical project.
Jun 2021 The NSW Government commenced a Registration of Interest (ROI) process for existing and proposed generation, storage and network infrastructure projects in the New England region to inform the next stage of design, closing 23 July.
Aug 2021 The NSW Government announced 80 ROIs were received, totaling 34 gigawatts of potential renewable energy projects. The first auction for renewable energy projects across the NSW REZs is expected in 2022.
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
Priority Initiative (medium-term, 5-10 years)
Resources
Project pages
Energy NSW (New England)
Major Contract

NSW South-West REZ

PROJECT STATUS
Prospective
NSW South-West REZ

The South West Renewable Energy Zone (REZ) will be developed in the area surrounding Hay in the South-West region of NSW.

The South-West REZ will be developed following planning and procurement of the Central-West Orana REZ. Transmission upgrades to support the REZ will be proposed and developed over the coming years.

Key Dates

Oct 2021 ROIs Open
Nov 2021 ROIs Close

PROJECT HISTORY

Nov 2019 The REZ was outlined in the NSW Government's 2019 Electricity Strategy, identifying its proximity to existing transmission infrastructure, the Snowy Hydro Scheme and potential options for new interconectors between New South Wales, Victoria and South Australia as key factors determining the REZ's location.
Oct 2021 EnergyCo NSW opened Registrations of Interest seeking information from generation, load, storage and network developers interested in being part of the Project.
Nov 2021 Registrations of Interest seeking information from generation, load, storage and network developers interested in being part of the Project closed.
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
High Priority Initiative (medium-term, 5-10 years)
Resources
Project pages
Energy NSW (South-West)
Major Contract

NSW Central-West Orana REZ Transmission Project

PROJECT STATUS
Detailed Planning
NSW Central-West Orana REZ Transmission Project

The proposed transmission project aims to support the delivery of a pilot Renewable Energy Zone (REZ) in the New South Wales Central-West Orana region.

Transmission lines will run north-west from the existing network near Merriwa, passing south of Dunedoo before connecting to the existing network east of Wellington. The project also includes a proposed upgrade to the Wollar substation and related infrastructure upgrades.

Transmission upgrades will be required to support the increase in renewable generation and storage in the REZ. The scope and timeline for these upgrades will be determined following a feasibility study being developed by TransGrid with support from the Australian Renewable Energy Agency.

Key Dates

Jan 2024 Expected Construction Commencement
Jul 2025 Expected Construction Completion

Funding contributions

Federal Government

The Federal Government, through ARENA, has committed $5 million towards a $16.2 million feasibility study, to be undertaken by TransGrid, which will assess the technical and commercial options for the development of new high voltage transmission lines to enable the REZ.

PROJECT HISTORY

Jun 2020 On behalf of the Australian Government, the Australian Renewable Energy Agency (ARENA) committed $5 million in funding to TransGrid to conduct a detailed feasibility study for the project.
Jul 2020 In its 2020 Integrated System Plan, AEMO identified the Central-West Orana REZ Transmission Project as a critical project and provided updated costings for the project. The ISP estimates that the transmission project component of the Central-West Orana REZ has a cost of between $450 million and $850 million, with a modelled cost of $650 million.
Dec 2020 The Central-West Orana REZ Transmission Project was declared Critical State Significant Infrastructure by the New South Wales Government.
Mar 2021 The NSW Government released the Central-West Orana REZ Access Scheme Issues Paper for public consultation. The Paper identifies the key features of the REZ's transmission project.
Sep 2021 TransGrid submitted a Scoping Report and requested the NSW Department of Planning, Industry and Environment Secretary's Environmental Assessment Requirements for the Wollar Substation upgrade project.
Oct 2021 The NSW Department of Planning, Industry and Environment issued Secretary’s Environmental Assessment Requirements (SEARs) for the Wollar Substation upgrade project.
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales | National |
Infrastructure Australia status
High Priority Initiative (medium-term, 5-10 years)
Resources
Major Contract

NSW New England REZ Transmission Project

PROJECT STATUS
Prospective
NSW New England REZ Transmission Project

The proposed transmission project aims to support the delivery of the New England Renewable Energy Zone (REZ) in the New South Wales New England region.

Transmission upgrades will be required to support the increase in renewable generation and storage in the REZ. The scope and timeline for these upgrades will be determined following a feasibility study being developed by TransGrid with support from the Australian Renewable Energy Agency.

Key Dates

Jul 2020 Project Announcement

Funding contributions

Federal Government
NSW Government

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.

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.
Estimated Total Cost
(2020)
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
High Priority Initiative (medium-term, 5-10 years)
Resources
Media releases
2020/07/10
2020/07/17
Project pages
Energy NSW (New England)
Major Contract

NSW Central-West Orana REZ

PROJECT STATUS
Under Procurement
NSW Central-West Orana REZ

The Central-West Orana Renewable Energy Zone (REZ) aims to unlock up to 3,000 megawatts of new renewable generation.

The Central-West Orana region was selected as the first REZ due to level of planning and investment in renewable energy projects already underway, with around 4,500 megawatts of renewable projects either approved or in the planning system.

The precise location of the Central-West Orana REZ will be determined through industry and community consultation, and further input gained during the tender process.

Key Dates

May 2020 ROIs for the development of projects in the REZ opened.
Jun 2020 ROIs for the development of projects in the REZ closed.
Dec 2021 ROIs Open
Jan 2022 ROIs Close
Dec 2022 Construction of projects in the REZ expected to commence.

Funding contributions

NSW Government

The NSW Government's contribution is to develop the REZ, including the establishment of the Energy Corporation of NSW, which will coordinate the development of the REZ.

Procurement

Procuring Agency: Energy Corporation of NSW
Tenderers (EOI/ROI): Registrations of Interest opened for proponents of potential renewable energy and energy storage projects in the region to provide an indication of the scale, location and types of projects being considered for the REZ.
Shortlist: Network Operator Shortlist: - ACE Energy comprising ACCIONA, Cobra and Endeavour Energy - Network REZolution comprising Pacific Partnerships, UGL, CPB and APA Group - NewGen Networks comprising Plenary, Elecnor, Essential Energy and SecureEnergy

PROJECT HISTORY

May 2020 ROIs for renewable generation and storage projects in the REZ opened, closing 5 June.
Jun 2020 The NSW Government revealed 113 Registrations of Interest (ROIs) were received, with proposals representing an estimated 27 gigawatts of total capacity.
Feb 2021 Community engagement commences.
Mar 2021 The NSW Government released the Central-West Orana REZ Access Scheme Issues Paper for public consultation. The Paper identifies the key features of the REZ's transmission project.
Dec 2021 The NSW Government invited Registrations of Interest for the Project's Network Operator role.
Jan 2022 Registrations of Interest for the Project's Network Operator role closed.
May 2022 The NSW Government shortlisted three bidders for the Project's Network Operator role. Shortlisted bidders include ACE Energy comprising ACCIONA, Cobra and Endeavour Energy, Network REZolution comprising Pacific Partnerships, UGL, CPB and APA Group and NewGen Networks comprising Plenary, Elecnor, Essential Energy and SecureEnergy.
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
High Priority Initiative (medium-term, 5-10 years)
Resources
Tender notices
20/12/2021