New South Wales is working on its first urban Renewable Energy Zone (REZ).
The Minns Government has launched planning consultation for a Renewable Energy Zone (REZ) in the Illawarra.
The new REZ is aimed at facilitating decentralised energy solutions that prioritise consumer and community-scale assets.
The Illawarra REZ Roundtable, held in Wollongong last week, brought together industry, government and community representatives to map out initial steps for the region’s transition.
It coincided with a new memorandum of understanding between EnergyCo and Endeavour Energy to develop integrated network and battery solutions across the REZ footprint.
Unlike existing REZs that focus on large-scale renewables and new transmission, the Illawarra initiative emphasises distributed energy resources (DER), including rooftop solar, household and community batteries, and electric vehicles.
The plan also seeks to repurpose government land and commercial rooftops to minimise environmental and social impacts.
“The Illawarra has the potential to be NSW’s first urban renewable energy zone. This is a chance to leverage the community’s enthusiasm for solar, batteries and EVs to benefit the entire region,” said Minister for Energy and Climate Change Penny Sharpe.
The shift comes amid growing concerns about the cost and complexity of building new transmission, with agencies like the Australian Energy Market Operator now recognising the central role DER will play in the energy transition.
The Illawarra is already home to the Rewiring 2515 project – Australia’s first attempt to fully electrify a postcode – offering a proof-of-concept for integrating local energy systems.
The region also boasts key infrastructure, including ports, substations, and industrial loads such as the Port Kembla steelworks, positioning it as a testbed for grid-edge innovation.
“This Roundtable brings together industry pace setters and innovators in a crucial step towards delivering clean green energy that can meet the needs of both residents and local industry,” said Planning Minister and Wollongong MP Paul Scully.
EnergyCo, which leads delivery of the state’s five REZs, will now undertake further engagement with local stakeholders to refine the zone’s design, with a focus on delivering initial projects by 2030.
“The Illawarra already hosts major energy, port and transport infrastructure, we have skilled workers ready to go, and strong demand for projects which capitalise on the region’s ability to innovate,” said Minister for the Illawarra Ryan Park.