The NSW Government has entered into a commitment deed with ACCIONA, COBRA, and Endeavour Energy, also known as the ACEREZ consortium, as the preferred network operator for the Central-West Orana Renewable Energy Zone (REZ).
ACEREZ is submitting a request for approval to deliver, operate, and maintain the REZ transmission network for 35 years, including the construction of new high-capacity lines and related infrastructure.
The new transmission infrastructure will enable generators like solar and wind farms and energy storage providers in the REZ to connect to the electricity grid on an unprecedented scale.
The proposed solution will ensure a consistent, cost-effective electricity supply for both residential and commercial users in NSW, thereby achieving the State’s net zero targets.
This is the first time the NSW Government has competitively procured a new transmission network, with the network operator bearing most of the risk of delay and cost overruns rather than transferring them directly to electricity consumers.
The modification of the REZ capacity is expected to enhance its capacity to meet future energy demands.
The Central-West Orana REZ’s declaration has been revised following public consultation, aiming to increase its network capacity to 6 GW by 2038, with an initial transmission infrastructure capacity of 4.5 GW.
The change will enable the REZ to generate more renewable energy, potentially needed by late 2030s, without altering its geographical size, which covers approximately 20,000 km2 around Dubbo.
The Central-West Orana REZ is set to finalise regulatory and planning approvals before the network operator’s award and financial close in the second half of 2024.
The REZ’s environmental impact statement was just made public, allowing stakeholders to weigh in on the project. The response to submissions will be made public early next year, ahead of state and Commonwealth planning approvals due in mid-2024.
The construction is anticipated to commence in early 2025, with the initial operation scheduled for 2027-2028 if approved.
The Central-West Orana REZ is projected to attract up to $10 billion in private investment by 2030, creating around 5000 construction jobs at its peak.
“These milestones are an important step forward in the development of the Central-West Orana REZ, taking it from vision to reality,” Minister for Climate Change and Energy Penny Sharpe said.
According to Minister Sharpe, the move aims to provide clean, affordable, and reliable energy to households and businesses in NSW for decades, thereby achieving the State’s net zero targets.
“Regional communities are central to delivering our transition to renewables. Those that host new energy infrastructure will share in the benefits of the once-in-a-generation economic opportunity presented by the transition.”
EnergyCo plans to maintain close collaboration with the community in the planning and execution of the Central-West Orana REZ.
“ACEREZ is looking forward to working with EnergyCo to deliver the nation’s first Renewable Energy Zone in the Central-West Orana,” ACEREZ chief executive Trevor Armstrong said.
“We’ll work with each of the potential generators to bring the REZ to life are committed to consulting with the community every step of the way as we help build a sustainable energy future for NSW.”
