The New South Wales Government has awarded a contract and reached financial close for the Central-West Orana Renewable Energy Zone (REZ) transmission project, marking the first REZ transmission project in Australia to be competitively sourced.
ACEREZ, a consortium comprising ACCIONA, COBRA, and Endeavour Energy, will design, build, finance, and maintain the project for the next 35 years.
The initiative will create essential infrastructure to connect solar, wind, and energy storage to the state’s electricity grid.
The project aims to deliver at least 4.5GW of new network capacity by 2028, enabling the connection of 7.7GW of wind and solar projects.
This capacity is expected to power over two million homes annually.
It is also forecast to provide a significant economic boost to the region, generating over 5000 construction jobs at its peak and attracting $20 billion in private investment by 2030.
Penny Sharpe, New South Wales Minister for Climate Change and Energy, emphasised the significance of the milestone.
“With three out of four of the state’s remaining coal-fired power stations set to close in less than ten years, this REZ will help us meet our future energy needs in order to keep the lights on and avoid price spikes,” Sharpe said.
“The project will also inject billions of dollars in private investment into the Central-West Orana region by 2030, along with thousands of jobs and opportunities for local suppliers.”
EnergyCo CEO, Hannah McCaughey, highlighted the long-term impact of the project.
“The Central-West Orana Renewable Energy Zone is part of a once-in-a-generation extension of the NSW electricity grid. It’s a major step in securing our energy future and keeping the lights on as coal-fired power stations retire.”
The project is also set to bring a $128 million investment from the New South Wales Government into local communities, with grants for councils and First Nations groups to support regional development before construction commences.
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