NSW formally declares its third renewable zone as shift from coal accelerates

The New South Wales government has formally declared its third renewable energy zone, this time in the south-west, as efforts to replace the state’s ageing and increasingly unreliable coal fleet accelerate.,

The South West Renewable Energy Zone follows much of the route of the massive new Project EnergyConnect transmission link between NSW and South Australia, and will open up vast tracts of a part of the state that has excellent renewable resources but suffered from limited grid capacity.

The interest in the South West REZ was highlighted in the registration of interest process late last year that attracted more than 34GW of proposals for a zone that will seek to accommodate just 2.5GW of capacity.

The South West REZ is the third renewable energy zone to be formally declared following those of the Central-West Orana zone, which has now moved into the formal tender process, and the New England REZ.

Other REZs are being created in the Hunter and the Illawarra regions, which will include large amounts of offshore wind, and more could follow as the state seeks solutions on replacing 10GW of coal capacity that is likely to leave the grid within the next decade.

Those plans are being accelerated by fast-tracked closures of the main coal generators, including Liddell early next year, Eraring in 2025, and Bayswater as early as 2030. Vales Point is expected to close by 2029, leaving Mt Piper with the only uncertain closure time.

Mike Young, the head Energy Corporation of NSW (EnergyCo) says the zone – including the towns of Balranald and Hay – is expected to attract up to $2.8 billion in private investment by 2030. At its peak, it will support more than 2,000 construction jobs.