PRODUCED BY INFRASTRUCTURE PARTNERSHIPS AUSTRALIA
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
Other
2019 NSW Electricity Strategy
2018 NSW Transmission Infrastructure Strategy
Tender notices
Commercial Advisory Services
Illawarra REZ ROI - Generation and Storage
Project pages
Energy NSW
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
Confirmed PPP |
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 New England REZ

PROJECT STATUS
Under Procurement
NSW New England REZ

The New England Renewable Energy Zone (REZ) has a proposed capacity of 8,000 megawatts of generation. The REZ is to be located  in the New England region, centred around Armidale. 

The scope of works for each stage of the network expansion is yet to be identified. 

 

Key Dates

Jun 2021 ROIs for the development of projects in the REZ opened.
Jul 2021 ROIs for the development of projects in the REZ closed.
Sep 2022 EOIs for generator and storage projects in the REZ opened.
Oct 2022 EOIs for generator and storage projects in the REZ closed.
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 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.
Sep 2022 The Energy Corporation of NSW (EnergyCo) opened an Expression of Interest to identify and select generator and storage projects for the New England REZ, closing on 4 October.
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
Priority Initiative (medium-term, 5-10 years)
Resources
Media releases
2020/07/10
2020/07/17
2021/08/27
2021/06/03
Tender notices
2022/09/09 - EOI for Generator and Storage Developers to Participate in New England REZ Design Development
Project pages
EnergyCo
Major Contract

NSW South West REZ

PROJECT STATUS
Under Procurement
NSW South West REZ

The South West Renewable Energy Zone (REZ) has a proposed capacity of 2.5 gigawatts of new renewable generation and storage capacity. The REZ is to be developed around Hay, stretching from the Murrumbidgeee LGA in the east to Buronga in the west, in the South-West Region of NSW.

It is anticipated that the 500kV eastern section of Project EnergyConnect (between Dinawan and Wagga Wagga) and HumeLink will provide transmission support.

Key Dates

Oct 2021 ROIs Open
Nov 2021 ROIs for generator and storage projects in the REZ closed.

Procurement

Procuring Agency: EnergyCo

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 for generation and storage project in the REZ, closing on 24 November.
Sep 2022 Project EnergyConnect (NSW - Eastern Section) received planning approval from NSW Government.
Nov 2022 The NSW Government formerly declared the scope of the REZ, which would extend from Buronga to Hay. NSW Government received 49 ROIs representing 34 gigawatts from potential generation and storage projects (more than 13 times the intended 2.5 gigawatt capacity).
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
High Priority Initiative (medium-term, 5-10 years)
Resources
Government resources
Renewable Energy Zones (Energy NSW)
Media releases
2022/11/04
2022/02/04
Project pages
Energy NSW (South-West)
Project EnergyConnect
Major Contract

NSW Illawarra REZ

PROJECT STATUS
Under Procurement
NSW Illawarra REZ

The Illawarra Renewable Energy Zone (REZ) has a proposed capacity of one gigawatt of renewable energy generation. The REZ will be located in the area surrounding Wollongong to Dapto and the Shellharbour LGA.

The Federal Government has announced a potential Commonwealth Offshore Wind Project off the coast of the Illawarra which may utilise the transmission infrastructure constructed as part of this REZ. 

 

 

 

Key Dates

Jun 2022 ROIs for generator and storage projects in the REZ opened.
Jul 2022 ROIs for generator and storage projects in the REZ closed.

Procurement

Procuring Agency: EnergyCo

PROJECT HISTORY

Jun 2022 Registrations of Interest (ROIs) opened for renewable generation and storage projects in the REZ, closing on 22 July.
Aug 2022 The NSW Government revealed 44 registered projects, with the potential for 17 GW of energy generation and storage capacity.
Dec 2022 A draft declaration was placed on exhibition, closing on 6 February 2023.
Feb 2023 The REZ was formally declared by the NSW Minister for Energy, confirming the intended location and capacity.
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
High Priority Project (medium-term, 5-10 years)
Resources
Government resources
Formal declaration
Media releases
2022/08/29
2023/02/27
2022/08/05
Project pages
EnergyCo
Major Contract

NSW Hunter-Central Coast REZ

PROJECT STATUS
Under Procurement
NSW Hunter-Central Coast REZ

The Hunter-Central Coast Renewable Energy Zone (REZ) has an intended capacity of one gigawatt of renewable energy generation. The REZ is to be developed in the region between and around Muswellbrook and Newcastle, and the northern areas of the Central Coast.

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.  

The Federal Government has identified a potential Commonwealth Offshore Wind Area off the coast of the Hunter which may utilise the transmission infrastructure constructed as part of the REZ.

 

 

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.

Procurement

Procuring Agency: EnergyCo

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.
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
High Priority Project (medium-term, 5-10 years)
Resources
Project website
EnergyCo Project Website
Government resources
2023/02/23 Notice of Proposal to Delcare an Area - Pacific Ocean off Hunter, NSW
2022/12/06 Renewable Energy Zone (Hunter-Central Coast) Order
Media releases
2022/02/16
Other
Offshore Proposal
Project pages
Waratah Super Battery
Major Contract

NSW Central-West Orana REZ

PROJECT STATUS
Under Procurement
NSW Central-West Orana REZ

The Central-West Orana Renewable Energy Zone (REZ) has a proposed capacity of 3,000 megawatts of new renewable generation. The REZ is to be located across approximately 20,000 square kilometres centred by Dubbo and Dunedoo. 

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.

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 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.

PROJECT HISTORY

May 2020 Registrations of Interest for renewable generation and storage projects in the REZ opened, closing on 5 June.
Jun 2020 The NSW Government revealed 113 Registrations of Interest were received, with proposals representing an estimated 27 gigawatts of total capacity.
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.
Sector
Energy
Procurement approach
Unconfirmed |
Location
New South Wales |
Infrastructure Australia status
High Priority Initiative (medium-term, 5-10 years)
Resources
Media releases
2020/06/23 (NSW Government)
2020/06/23 (ARENA)
2022/05/04
Other
AEMO 2020 ISP
Tender notices
20/12/2021
Project pages
EnergyCo
Major Contract

NSW Central-West Orana REZ Transmission Project

PROJECT STATUS
Awarded
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 will include:

  • a new switching station at Wollar, to connect the project to Transgrid’s existing Wollar Substation and onto the NEM
  • new twin double circuit 500 kV transmission lines and associated infrastructure to connect to the NEM
  • single and double circuit 330 kV single lines to connect energy generation and storage projects within the Central-West Orana REZ to the energy hubs
  • additional energy hubs and switching stations to connect energy generation and storage

Transmission upgrades will be required to support the increase in renewable generation and storage in the REZ. 

 

Key Dates

Apr 2023 Preferred Bidder Selection
Apr 2023 Contract Award
2024 Expected Construction Commencement
Jul 2027 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.

Procurement

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
Successful Tenderer: ACE Energy consortium comprising ACCIONA, Endeavor Energy, and Cobra
Adviser (Tenderer): Capella Capital

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 portion of the project.
Sep 2022 The scoping report for the project was released and a request for SEARs for the transmission portion of the project was made.
Oct 2022 SEARs were issued for the project.
Apr 2023 EnergyCo selected ACE Energy, comprising ACCIONA, Endeavour Energy and Cobra, as the preferred bidderr for the project. The consortium will design, finance, build, operate, and maintain the REZ network infrastructure through an Availability-based Public Private Partnership-like contract.
May 2023 EnergyCo opened a Registration of Interest (ROI) for Independent Certifier Services for the project, closing 30 May.
Sector
Energy
Procurement approach
Confirmed PPP |
Location
New South Wales | National |
Infrastructure Australia status
High Priority Initiative (medium-term, 5-10 years)
Resources
Government resources
Central-West Orana Access Scheme Issues Paper
Scoping Report - September 2021
Issued SEARs
Supplementary SEARs
Media releases
2020/06/20
2020/06/23 (NSW Government)
2020/06/23 (ARENA)
2020/12/17
2023/04/27
Other
Scoping Report
2020 AEMO ISP
Project Factsheet
SEARs
Tender notices
2023/05/30
Project pages
TransGrid
NSW Planning Portal
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