Deed signed to boost export link from new renewable energy zone to main demand centres

The NSW government controlled EnergyCo says it has signed a deed for a grid upgrade that is critical in enabling the output of wind and solar farms in one of the state’s main renewable energy zones to reach the major load centres.

The agreement with Transgrid will allow an upgrade of a critical section between Jerilderie and Wagga Wagga that will enable the 3.56 gigawatts (GW) worth of new generation capacity from wind, solar, and battery projects in the South West Renewable Energy Zone get to market..

The announcement comes a month after the NSW Labor government announced a $225 million investment in the South West REZ to accelerate its development.

The NSW government has also fast tracked an initial $60 million investment through the Community and Employment Benefit Program to deliver benefits to the local community well before construction begins on the new transmission links and renewable energy generation.

All of this investment is expected to eventually attract more than $17.8 billion in private investment as well as support an average of 1,690 direct jobs per year during construction, as well as hundreds of ongoing operational jobs once construction is completed.

The worlds include an upgrade to the 330kV Dinawan substation so it can operate at 500kV, an upgrade to 11 kilometres of 330kV transmission line from Gugaa to Wagga Wagga substations, and the conversion of the existing Dinawan to Wagga Wagga powerlines from 330kV to 500kV.

“EnergyCo is pleased these upgrades will now get underway, with the South West Renewable Energy Zone expected to provide enough clean energy to power up to 1.6 million homes,” said Hannah McCaughey, EnergyCo CEO.

The South West REZ is one of at least five renewable zones planned by NSW to host capacity needed to replace its fleet of ageing coal fired power station.

However, it is now generally accepted that the capacity of the zone is too small to support the huge number of wind and solar projects planned for the area, and only a small number of projects have been granted access rights to the grid within that zone.

Other projects are hoping to plug into existing grid infrastructure, but their ability to find a way to market has been limited by the size of the transmission lines feeding into the major load centres in and around Sydney.

To join more than 29,000 others and get the latest clean energy news delivered straight to your inbox, for free, click here to subscribe to our free daily newsletter.

To support independent media, and combat AI slop, you can click here to make a one off donation or become a regular supporter of Renew Economy.