Hunter-Central Coast renewable energy zone takes crucial shape, opens to feedback

The New South Wales government has moved a step closer to opening up of one of the state’s most promising and highly sought-after renewable energy zones, with the release of a draft declaration of the Hunter-Central Coast REZ.

The draft declaration sets out the intended size, location and infrastructure of the key REZ, which attracted renewable generation and storage projects representing almost 40GW and more than $100 billion of potential investment in a recent ROI process.

The Hunter-Central Coast REZ takes in a NSW industrial hub best known for coal power generation and aluminium smelting, and which offers huge promise for a transition to renewables – not least of all, offshore wind.

As RenewEconomy reported in February, the ROI process rallied interest from 24 solar projects, 13 onshore and seven offshore wind projects. This was joined by eight pumped hydro energy storage projects and proposals for 35 big batteries.

As the Hunter region is already host to several coal-fired generators that are scheduled to close it is expected that some proposed projects will seek to re-purpose existing network infrastructure, potentially reducing project costs.

Ideal location for a REZ

The renewables promise of the Hunter and Central Coast regions comes from the excellent wind and solar resources, existing power station and network infrastructure, rehabilitated mining land, port and transport infrastructure and skilled workforce.

“The Hunter-Central Coast REZ will ensure these regions have a key role in a renewable energy future, powering existing industries and supporting economic growth,” the EnergyCo documents say.

“[This includes] emerging technology in green hydrogen, ammonia and metal production, offshore wind, electric vehicle fleet operators and electrification of industrial processes.

“They have excellent renewable energy resources and can utilise existing power stations, rehabilitated mining land, electricity network infrastructure, port and transport infrastructure and a skilled workforce.”

Mapping it out

The draft documents, open to public feedback for four weeks, propose a location for the REZ that takes in the lands of the Awabakal, Bahtabah, Biraban, Darkinjung, Mindaribba, Wanaruah and Worimi people (see map).

The documents set an intended network capacity of 1GW.

Energy Corporation of NSW (EnergyCo) says that while 1GW is less than half of the 2GW-plus of the solar and onshore wind projects – alone – identified in the ROI, it is sufficient given the variable nature of wind and solar.

EnergyCo says the capacity of the Hunter-Central Coast REZ is likely to increase over time with the retirement of coal-fired power stations, re-purposing of mining land and the growth of offshore wind.

Further, the Hunter Transmission Project will deliver up to 8GW of additional transfer capacity, EnergyCo says.

Offshore wind promise

On top of all of its other renewables-friendly qualities, the Pacific Ocean off the NSW Hunter and Illawarra region has been named alongside six other regions around Australia to be prioritised by the federal government in the establishment of an offshore wind industry.

After Victoria’s Bass Strait off Gippsland, the Hunter and Illawarra are expected to be the next two offshore wind zones to be declared by the Albanese government, which just this week tabled the final piece of legislation to kick-start the industry.

“Offshore wind has incredible potential to strengthen our economy, create jobs and opportunities for Australians,
and ensure the delivery of affordable and reliable power,” said federal energy minister Chris Bowen in Parliament on Wednesday.

“While we’re currently behind the pack, we’re not out of the race yet, and the bill enables the necessary changes
to allow for licencing and construction to begin,” he said.

“There are at least a dozen offshore wind projects waiting for this legislation—and the passage of this bill is the
next step in regulatory consideration.”

See RenewEconomy’s Offshore Wind Map of Australia