The NSW Government has unveiled a $1.8 billion investment into the State’s energy transition, including establishing the Energy Security Corporation and connecting new projects to the grid.
“This additional $1.8 billion investment puts the renewable energy roadmap back on track. It will accelerate the transition to renewables, to ensure NSW households and communities have a reliable supply of clean, affordable electricity,” Minister for Energy Penny Sharpe said.
The State Government also announced an additional $800 million commitment to the Transmission Acceleration Facility to expedite the connection of NSW’s Renewable Energy Zones (REZ) to the grid.
The funding injection will support early work in the Central-West Orana Renewable Energy Zone. The REZ is projected to generate 5000 construction jobs and $10 billion in private investment by 2030.
The NSW Government also noted it is set to submit the Central-West Renewable Energy Zone’s Environmental Impact Statement for the Department of Planning and Environment approval.
“These investments will reignite the first of our Renewable Energy Zones in the Central West-Orana and make sure local communities see early benefits,” Minister Sharpe stated.
According to the Government, the funding will keep the Hunter Transmission Project, Waratah Super Battery, and other planned REZs moving forward.
The Transmission Acceleration Facility accelerates the implementation of new transmission projects by subsidising early work in the zones and community benefit programs.
Private sector developers of REZ projects will ultimately recoup the investments once projects reach financial close, which will be recycled back into the facility for future REZ projects.
The investment takes the total government commitment to the Transmission Acceleration Facility to $2 billion since its inception in 2022, administered by EnergyCo.
Additionally, the NSW Budget will allocate $1 billion to establish the Energy Security Corporation to invest in storage projects, address market gaps, and enhance electricity network reliability during the renewable transition.
The Energy Security Corporation will be established with funding from Restart NSW, and the government will engage with stakeholders throughout the development process.
“We’re not just investing in large, grid-scale projects. We want to give households and communities more power to make choices about how they generate and use energy. That’s why the Energy Security Corporation will invest in projects like community batteries to help more households use their rooftop solar to become self-sufficient,” Minister Sharpe said.
These investments will assist the State Government in meeting the target of 12 gigawatts of additional renewable energy generation and 2 gigawatts of long-duration storage by 2030 as part of its response to the Electricity Supply and Reliability Check Up.
“We’re determined to get NSW back on track when it comes to the energy transition, and this announcement is part of that,” NSW Premier Chris Minns said.
“We want the state to be able to invest in solutions that ensures reliability in the system, keeps the lights on, and creates new jobs for the state,” Premier Minns added.
