NSW pitches first “urban” renewable zone based around rooftop PV, batteries and EVs

The NSW Labor government has flagged the creation of the state’s first “urban” renewable energy zone in the Illawarra, pitching the use of rooftop solar PV, home batteries and EVs in a major switch from the usual pitch of large scale wind, solar and transmission lines.

State energy minister Penny Sharpe and planning minister Paul Scully made the announcement on Friday, highlighting the renewed focus on consumer energy resources, such as rooftop PV on homes an businesses, and household and community scale batteries.

Sharpe says the Illawarra plan could be world-leading, because of the unique nature of the region, and its ability to boast port and transmission infrastructure, a leading university, innovative industries and a skilled workforce.

“We’re trying to move our energy system from five large coal fired power plants to literally thousands of little power plants that need to work together,” Sharpe said at a media event on Friday.

“We want the Illawarra renewable energy zone to be leading in Australia.

“About how do we, how do we make all of these elements work together, rooftop solar, batteries, EVs, community batteries, how do we work with higher emitting industries so that they can actually be at the forefront of green industry for the future that all relies on getting renewables right.”

The focus on consumer energy resources is significant, because there is now a growing recognition that more has to be done to integrate these resources into the grid, because they will be a key part of the transition from fossil to green energy and it is possible they will be a bigger contributor than large scale resources.

Illawarra is already playing host to an Australian first, the Rewiring 2515 project that seeks to electrify an entire postcode, possibly setting a template for other communities to follow.

The focus on CER comes as the Australian Energy Market Operator acknowledges the blow out in transmission costs, and issues around social license, will result in an increased focus on local networks and distributed energy in the next iteration of its multi-decade planning blueprint, the Integrated System Plan.

It also reflects realities in the Illawarra. While the region has been earmarked for offshore wind, this is unlikely to gain much traction over the next decade, so the focus on consumer, or distributed energy resources, will be the main plan for the next five years.

The state government has signed a memorandum of understanding with Endeavour Energy, which owns and operates the local poles and wires, with a focus on community batteries, and it intends to liase with community and industry leaders on its plans for an “urban” REZ.

Scully, who is also the member for Wollongong, says the Illawarra is uniquely positioned to show how renewable energy production and consumption can fit into an urban area, and support big industry such as the local steelworks.

“We’re defining that as we go,” Scully says.

“What we want to do is harness where we’ve got good household solar use, good household batteries, a great deal of government property and community facilities and community batteries that we could all integrate together in an area that’s ready to lead the charge when it comes to setting a new approach to renewable energy, generation, storage and transmission.”

The Illawarra is one of five renewable energy zones created by the state government as it seeks to ensure enough new wind, solar and storage capacity is built in times for the state’s remaining coal fired power stations can retire within a decade.

Most are focused on large scale generation and storage, and new transmission, which has proved controversial in some areas, although the Hunter REZ is more focused on leveraging local infrastructure.

If you wish to support independent media, and accurate information, please consider making a one off donation or becoming a regular supporter of Renew Economy. Your support is invaluable.