The NSW Government has declared the fifth Renewable Energy Zone (REZ) in Illawarra to guarantee the region plays a crucial role in NSW’s clean energy future.
The Illawarra is now the fifth and last REZ to be established under the nation-leading NSW Electricity Infrastructure Roadmap.
Treasurer and Minister for Energy Matt Kean stated that the announcement is part of the State Government’s long-term plan to modernise the energy grid with renewable energy and storage, lowering rates and ensuring the system’s reliability.
“The Illawarra has a proud history of manufacturing, and the REZ will only build on this legacy, powering existing and emerging industries such as offshore wind, green hydrogen and green steel production,” Minister Kean said.
According to Minister Kean, Illawarra is a suitable region to host a REZ due to its energy, port, and transportation infrastructure, highly qualified workforce, and significant desire from existing sectors to decarbonise.
“This is a huge win for the Illawarra with projects registering their interest showing a potential to create more than 8,300 jobs, not including the huge employment potential of offshore wind,” Minister Kean added.
The Illawarra REZ stretches from Wollongong to Shellharbour and then around Dapto, capturing existing infrastructure, including Port Kembla, the Dapto Substation, and the Tallawarra Power Station.
The State Government said the Illawarra region has a tremendous commercial interest, with the potential to unlock more than 17 gigatonnes of capacity and more than $43 billion in private investment in wind, battery storage, pumped hydro, hydrogen, and new load projects, including green steel production.
Minister Kean stated that as the region transitions to a renewable energy future, these projects could potentially create thousands of employment in the Illawarra.
“This is just another example of the NSW Liberal and Nationals Government getting on with the job of transforming our State’s energy system, while the Labor Party develops its secret plan to nationalise the grid, which will spook investment and push up power prices,” Minister Kean added.
EnergyCo will start the next stage of development, which will include keeping a close relationship with the neighbourhood’s industries, councils, and other stakeholders in 2023.
