NSW Government

NSW declares fifth renewable energy zone, with offshore wind and storage focus

Published by

The NSW state government has officially declared the fifth renewable energy zone – this time in the Illawarra region – as part of its roadmap to replace the country’s biggest coal grid with renewables and storage over the next decade.

The declaration of the Illawarra REZ follows similar declaration for the Central West Orana, New England, Hunter, and South West REZs – all designed to foster and host at leat 12GW of new wind, solar and storage projects.

The Illawarra REZ – like the Hunter REZ – will have a large component of offshore wind, thanks to the respective port facilities that were built as a legacy of the coal and steel industries in those two regions.

So far, up to 17GW worth of projects, worth more than $40 billion, have been proposed for the region – mostly for offshore wind projects.

“The Illawarra has a proud history of manufacturing and the REZ will only build on this legacy, powering existing and emerging industries such as offshore wind, green hydrogen and green steel production,” energy minister Matt Kean said in a statement.

 

“The Illawarra is an ideal region to host a REZ, thanks to its existing energy, port and transport infrastructure, its highly skilled workforce and strong demand from existing industries to decarbonise.

“This is a huge win for the Illawarra with projects registering their interest showing a potential to create more than 8,300 jobs, not including the huge employment potential of offshore wind.”

The initial call for projects for the Illawarra REZ unlocked interest in investments in wind, battery storage, pumped hydro, hydrogen and new load projects, including green steel manufacturing.

Last week, Port Kembla, announced plans to turn itself into a support base for a future offshore wind industry,  unveiling two concept plans for its outer harbour.

The Wollongong port is already an import hub for onshore wind farm components and the port operator also wants to add hydrogen to the mix.

 

 

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

Giles Parkinson

Giles Parkinson is founder and editor-in-chief of Renew Economy, and founder and editor of its EV-focused sister site The Driven. He is the co-host of the weekly Energy Insiders Podcast. Giles has been a journalist for more than 40 years and is a former deputy editor of the Australian Financial Review. You can find him on LinkedIn and on Twitter.

Share
Published by
Tags: Governments

Recent Posts

Six wind farms, two solar hybrids and seven-hour batteries win key CIS tenders ahead of coal closure

Six wind farms, two huge solar-battery hybrids and several seven and eight hour battery projects…

2 May 2026

Huge wind and battery project becomes first to seal local benefits deal under rigorous new planning regime

Developer thanks council for helping navigate "evolving regulatory landscape" as it seals the first Community…

2 May 2026

“Let’s actually get projects up and running:” Report warns Australia’s green iron edge is at risk

Australia's renewable energy and rich iron ore deposits make it a potential leader in green…

1 May 2026

New changes trim “essential” REZ transmission route to avoid caves – and another 50 landholders

A new nip-and-tuck to plans for a major new REZ transmission line has trimmed it down…

1 May 2026

Energy Insiders Podcast: Electric trucks are profitable, but diesel struggles

Ben Hutt, the CEO of battery-swap electric truck company Janus Electric on the switch from…

1 May 2026

Claims of huge new blow-outs to the Snowy 2.0 bill are just plain wrong

The latest, much-inflated price estimates Snowy 2.0 critics have come up with for the pumped…

1 May 2026