The NSW transition plan from coal to renewables has taken a small but significant step forward with news that planning approval has been given in relatively quick time to the Hunter-Central Coast renewable energy zone.
The Hunter zone is notable because it is largely built around existing infrastructure, using existing easements to upgrade its network so it can host an additional one gigawatt of network transfer capacity.
It is the first of its type in Australia, with the other zones in NSW – notably Central West Orana, the South West and New England REZs requiring significant investment in new transmission lines, and a complicated process to plot a route and gain community support.
Unfortunately, there is little opportunity to replicate similar upgrades in other regions because the best wind and solar resources tend to be located away from existing transmission lines.
But many developers are now focusing on local networks for opportunities, encouraged by the network operators themselves, and assessing whether the lower connection costs – and less central control over grid access – can compensate for slightly inferior wind and solar resources.
The Hunter REZ stretches stretches from the Upper Hunter in the north to the Central Coast in the south and includes the Newcastle, Lake Macquarie and Port Stephens regions.
“Planning approval for the Hunter-Central Coast Renewable Energy Zone project is further evidence of progress on a key upgrade that will help keep the lights on as coal-fired power plants retire,” state energy and climate change minister Penny Sharpe said in a statement.
“Upgrading existing distribution poles and wires allows us to minimise the impact on communities and the environment, and speeds up the delivery of this critical infrastructure.”
The Hunter-Central Coast REZ network infrastructure includes upgrades to existing distribution lines – replacing wooden poles with bigger and stronger metal poles, for instance, and the construction of two new substations.
It has been assessed as having a relatively low environmental impact, as most of the works are taking place on existing easements.
Ausgrid, the local network operator, has committed to addressing feedback in the Review of Environmental Factors feedback, which included priorities such as jobs, support for local businesses and procurement, traffic management and protection of visual amenity and environment, as well as community benefit schemes.
NSW currently sources around 36% of its electricity from renewables, with most of the rest coming from its remaining legacy coal plants.
Most, if not all, are expected to retire within a decade, with the 2.88 GW Eraring coal generator – the country’s biggest – currently scheduled to close in August, 2027 after already gaining one two-year extension underwritten by the state government.
However, there is ongoing speculation that at least one or two units may continue beyond that – to early 2029 – although Origin Energy has denied any such decision has been made. But Origin, like the other major energy utilities, has so far invested little, and contracted little in the way of new wind and solar capacity to replace those generators.
Still, the NSW government says that the projects it has already backed will get the state “two thirds” of the way to its renewable generation goal, and nearly half way to its long duration storage target. It recently upped those targets in an effort to spark further investment.
The Hunter Central Coast REZ project is now subject to final approvals from the Australian Energy Regulator. Construction is expected to start in 2026 and be complete in mid 2028.
The project is separate to the Hunter Transmission Project, whose environmental empact statement is currently on public exhibition, and which has drawn more protest because new transmission easements are being sought.
