NSW to open bids for access to first two renewable zones, in race to plug in new wind, solar and batteries

Applications have opened for solar, wind and battery projects to reserve a spot on the grid in New South Wales’ biggest renewable energy zone, as part of a fast-track process aimed at boosting investor confidence and giving communities more visibility over projects proposed for their region.

State energy minister Penny Sharpe says applications for access rights have opened in the Central-West Orana Renewable Energy Zone near Dubbo, while a tender will open soon for the South West Renewable Energy Zone near Hay.

Sharpe says the state government’s Energy Corporation (EnergyCo) will allocate initial rights for the Central-West Orana (CWO) REZ “to get new renewable energy to households and businesses faster.”

The tender for transmission access rights in the South West REZ is due to launch sometime in the next two months.

NSW in January announced plans to finesse the state’s grid access rights framework to help avoid the bottlenecks that have plagued many large-scale renewables projects built over the last five years.

As RenewEconomy has reported, the original idea was to award access rights to the state’s five renewable energy zones along with the underwriting agreements known as LTESAs (long term energy service agreements) that were being offered to new wind, solar and battery projects.

But the first allocation of access rights was pulled last November because the system was deemed to be too complex, and will now be offered separately to the LTESA program, and fast-tracked to enable the state to complete the design of the first REZ, the Central West Orana zone around Dubbo.

Changes were made to the regulations under the Electricity Infrastructure Investment Act to clarify the responsibilities of EnergyCo and the Consumer Trustee, AEMO Services and enable the establishment of alternative processes for projects to apply for access rights.

The idea, says Sharpe, is to ensure the right combination of projects can connect to the grid in a way that minimises costs for electricity consumers.

As part of the new access scheme, solar, wind and battery projects that gain access rights will pay a fee, a portion of which will go towards providing community and employment benefits in the Renewable Energy Zones.

An initial $128 million over four years for the Central-West Orana Renewable Energy Zone has already been announced by the state, to ensure communities can experience some of the benefits of hosting renewables and transmission before construction begins.

“[This is] the first-time access rights are being offered in NSW Renewable Energy Zones, marking a significant milestone for the Electricity Infrastructure Roadmap,” Sharpe said in comments on Wednesday.

“Access schemes for the Central-West Orana and South West Renewable Energy Zones will ensure we make the best use of new transmission lines, to reduce bills for energy consumers, improve planning outcomes for host communities and deliver new local, secure jobs.

“Directing part of the access fee back into host communities will ensure residents and businesses see tangible benefits well into the future, in addition to low-cost power and a more diversified economy,” Sharpe said.