NSW Renewable Energy Zones




PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
Central-West Orana Renewable Energy Zone
New England Renewable Energy Zone
NSW Renewable Energy Zones
South-West Renewable Energy Zone
STATUS

Prospective pipeline

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.

Credibly proposed

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.   

Announced

The project has a firm commitment and timeline from a state, territory or major local government, but has not yet entered the market.

Under procurement

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.

Recently closed

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:

Australia

Construction projects: > AUD$300m

Investable greenfield & brownfield: > AUD$100m

New Zealand

All greenfield and brownfield projects and divestments: > NZD $100 million


STATUS: Prospective pipeline
SECTOR: Energy
JURISDICTION: NSW
PROCUREMENT APPROACH: Unknown
TYPE: Greenfield

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

The NSW Government’s 2019 Electricity Strategy set out the government's commitment to establish three Renewable Energy Zones (REZs) across the state. The REZs align with the Australian Energy Market Operator’s (AEMO) Integrated System Plan (ISP), which identifies renewable energy zones as key to lowering investment costs and securing a balanced grid.

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 $23 billion in investment in the three 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.



Last reviewed: 03/07/2020

Central-West Orana Renewable Energy Zone


PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
 Central-West Orana Renewable Energy Zone

STATUS: Announced
SECTOR: Energy
JURISDICTION: NSW
PROCUREMENT APPROACH: Unknown
TYPE: Greenfield

Project Summary

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 region is also has a mix of solar and wind resources.

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.

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.

The Australian Energy Market Operator's (AEMO) 2020 Integrated System Plan (ISP) estimates that the Transmission Link component of the Central-West Orana REZ has a cost of between $450 million and $850 million, with a modelled cost of $650 million.

 


 

Key Dates

Late 2022: Construction on projects in the REZ expected to commence

May 2020: ROIs opened for development of projects in the REZ, closing in June 2020.

2024-25 - Scheduled delivery of Transmission Link

 


 

Funding

  • Federal Government: $5,000,000 AUD (towards feasibility study)
    NSW Government: $40,600,000 AUD

    NSW has committed $40.6 million funding to the development of the REZ, including the establishment of the Energy Corporation of NSW, which will coordinate development of the REZ.

    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

May 2020: ROIs opened for renewable generation and storage projects in the REZ.

June 2020: NSW Government revealed 113 Registrations of Interest (ROIs) received, with proposals representing an estimated 27 gigawatts of total capacity.

July 2020: In its 2020 Integrated System Plan, AEMO identified the Central-West Orana REZ Transmission Link as a critical project and provided updated costings for the Transmission Link.

 



Last reviewed: 14/08/2020

New England Renewable Energy Zone


PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
 New England Renewable Energy Zone

STATUS: Credibly proposed
SECTOR: Energy
JURISDICTION: NSW
PROCUREMENT APPROACH: Unknown
TYPE: Greenfield

Project Summary

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.

 


 

Key Dates

2031 - 2036: Expected delivery timeframe, subject to acceleration by NSW Government to meet announced target for development of the REZ

 


 

Funding

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.

 


 

Project History

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

South-West Renewable Energy Zone


PROJECT
PIPELINE
STATUS

Prospective pipeline

Credibly proposed

Announced

Under procurement

Preferred bidder announced

Recently closed
 South-West Renewable Energy Zone

STATUS: Prospective pipeline
SECTOR: Energy
JURISDICTION: NSW
PROCUREMENT APPROACH: Unknown
TYPE: Greenfield

Project Summary

The South West Renewable Energy Zone (REZ) will be developed in the area surrounding Hay in the South-West region of NSW. 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 Austra as key factors determining the REZ's location.

Transmission upgrades to support the REZ will be proposed and developed over the coming years.

The South-West REZ will be developed following planning and procurement of the Central-West Orana REZ.



Last reviewed: 03/07/2020

Presented by

Government sponsors

treasury-website-logobw

Supporting agencies

 
nzte-logo_web

 

 

doird_strip_web_trans
ia_trans