NSW fast tracks $60m to win over local communities, years before first poles erected in new renewable zone

The NSW has kickstarted its community funding program for communities hosting the country’s biggest renewable zone, announcing a first $60 million fund to deliver benefits years before construction begins on new transmission links.

The funding is to be allocated to communities in New England and Upper Hunter – for youth centres and sporting facilities, etc – as part of a program to garner support for the proposed New England Renewable Energy Zone, which could be the biggest in the country with capacity of more than eight gigawatts (GW).

“This funding is being brought forward to ensure initiatives can start to be delivered well before REZ projects begin construction,” state energy minister Penny Sharpe said in a statement.

“Renewable energy projects will deliver meaningful and lasting benefits for regional communities in New England and the Upper Hunter, and we’ve taken action to ensure investment will begin to flow well before projects come online.”

The REZ is expected to bring more than 6,000 full-time construction jobs and 2,000 ongoing operational jobs to the region, as well as opportunities in local manufacturing, retail and transport, the state government says.

But it has already attracted backlash from some members of the community, much of it led and amplified by federal New England MP Barnaby Joyce, the former Nationals leader who has defected to One Nation.

Changes have already been announced to the proposed route for the main transmission line that will connect planned wind, solar and battery projects to the main grid and into the state’s principal load centres. Work continues on the final design, and environmental and planning approvals.

That program, like the other renewable energy zones in the state in the central west, the south west, the Hunter and the Illawarra, is being managed by EnergyCo.

Sharpe said that EnergyCo will get input from councils and the community on the design of the funding program, and the first $60 million “is just the beginning” of further benefits to the region that will be unlocked by the New England REZ.

She said the experience in the Central-West Orana zone had amplified the need for early action on community benefit funding. It had delivered worker accommodation in Mudgee, water security initiatives in the Warrumbungle Shire and early education services for children in Dunedoo.

Sharpe said the New England REZ is part of a once-in-a-generation transformation of NSW’s power system, to keep the lights on and put downward pressure on prices as coal-fired power stations retire.

“This initial $60 million for legacy benefits means communities can start seeing practical benefits early. And it’s just the start – there will be more investment, more local jobs, and significant work for local businesses.”

Local mayors said the main issues for the community was about housing, water and waste management.

“It will counteract a lot of the problems we have in our community, around housing, water and sewers,” said Walcha council mayor Eric Noakes. “So we look forward to engaging in the conversation and also getting some of the money for the things that the community want.”

Uralla mayor Robert Bell said the council was looking to maximise the benefits. “What we now have is something to talk about with the community, whereas before we had thought bubbles, so this is a very positive step forward.

EnergyCo CEO Hannah McCaughey says negotiating are continuing with a number of consortia for the construction of the infrastructure needed for the New England REZ.

“I am excited to see funding start to roll out for communities in another Renewable Energy Zones,” she said in a statement. “This is just one of the ways we will see renewable energy translate into regional development.”

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