Construction begins on network upgrade to bring major coal region into the energy future

Ausgrid has signed the final piece of paper with EnergyCo to start building the Hunter-Central Coast renewable energy zone (REZ), which will add another gigawatt of capacity by expanding and upgrading existing network infrastructure.

Construction will begin in early 2026 now the project deed is signed, which outlines all of the responsibilities, deadlines, and financials for the major infrastructure project.

The Hunter-Central Coast REZ was declared in late 2022 and two years later, Ausgrid was picked to build it.  But it also had to receive a carve out from energy market transmission rules before being allowed to start anything. 

In October, the Australian Energy Regulator (AER) green-lit a waiver that lets Ausgrid provide network services inside the REZ alongside its existing services without separating staff, offices and branding. 

The Hunter zone, unlike others in New South Wales (NSW), is being planned around existing infrastructure.

Ausgrid is allowed to use existing easements to upgrade its network and allow the zone to host another 1 gigawatt (GW) of capacity, in order to speed up development of the REZ.

Streamlining the network upgrades in this way means the REZ is expected to be operational sometime in 2028.

The Hunter-Central Coast REZ is expected to bring up to $3.9 billion in private investment, some 590 jobs during construction, and 220 ongoing operational jobs from 2030.

“We’re excited to see this significant project move ahead, ensuring the region remains a major player in future electricity generation,” EnergyCo CEO Hannah McCaughey said in a statement.

The speed and ease with which the transmission for the Hunter-Central Coast REZ is taking place shows how challenging the job is to get the other more far-flung REZs running. 

The transmission corridor to the New England REZ is on its third iteration, with the new route avoiding Barnaby Joyce country but causing frustration for landowners along the new pathway. 

And ACEREZ, the Central-West Orana REZ transmission builder, found itself embroiled in a major controversy last month following reports of dozens of baby birds winding up in animal shelters following the removal of 670 native trees for the transmission route on Merotherie Road.

ACEREZ said it was following the environmental impact statement (EIS) set up by EnergyCo and approved by the state, but any birds were handled by project ecologists on site during the tree removal.

EnergyCo called it a project delivery issue and it expected all EIS environmental and biodiversity requirements to be met.

Despite the ongoing and vehement opposition from some communities, REZ transmission however is proving to be an attractive proposition for both local operators and international builders than are generally locked out of Australia’s tightly managed networks. 

ACEREZ is made up of Spanish companies Acciona and Grupo Cobra, and local network operator Endeavour Energy. 

In the hunt for the New England gig are a consortium including Iberdrola, Gamuda and Samsung C&T, another led by Ausnet, and a third bid from an EDF Australia offshoot.

Acciona and Iberdrola in particular have energetically pursued the new transmission opportunities.

The former landed deals to build the HumeLink East and Western Renewables Link and the latter grabbed the contract to develop the Victorian section of the Victoria to New South Wales Interconnector West.

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