Origin Energy says its success in gaining grid access rights for the giant Yanco Delta wind project in the south-west of NSW will trigger a final milestone payment of $175 million to Belgium-based Virya Energy.
The 1.46 gigawatt (GW) Yanco Delta wind project was the only one of four winning projects to have been granted grid access for its full potential capacity, thanks to its location within the south west renewable energy zone.
The others – the Pottinger renewable hub owned by AGL and Someva Renewables, the Dinawan hub owned by Spark Renewables and the Bullawah wind project owned by BayWa – only have approval for some of their capacity.
Origin bought the Yanco Delta wind project from Virya in May 2024, and it would be the biggest in the country if built now, although by the time it is constructed it will likely have competition from several other projects.
Origin paid Virya an initial $125 million, and says that securing of access rights will trigger a final milestone payment of $175 million.
Origin will now work through connection applications and hopes to find a buyer for the project, and hopes to reach a final investment decision in 2027. Origin will buy most of the generation. It struck a similar deal with the 530 MW Stockyard Hill wind project in Victoria.
CEO Frank Calabria says that the grid access rights win means Origin is “well on the way to transitioning our portfolio towards cleaner forms of energy supply, firmed by batteries, pumped hydro and the nation’s leading gas peaking fleet.”
The company operates the biggest coal fired generator in the country, Eraring, which was to have closed in August this year but will now stay open until at least August, 2027, after securing an underwriting agreement with the state government.
Origin says it aims to build, or contract up to 5 GW of renewables and storage, and said its proposed Skye Ridge and Northern Tablelands wind projects in the New England REZ had a planned capacity of more than 1,350 MW.
AGL, meanwhile, aims to build 12 GW of renewables and storage over the coming decade and says its plans will be boosted by the awarding of access rights to Pottinger, which it is developing with Someva Renewables.
The two companies plan to build up to 831 MW of wind capacity, backed by a 400 MW, 1600 MWh battery that will share the same connection point, and will be plugged into the new Project EnergyConnect transmission line that will form the backbone of the new REZ.
Someva managing director Jamie Chivers says construction is slated to begin in late 2026.
“From the outset, this project has been about working with the local community to ensure that the benefits of renewable energy are shared,” he said in a statement.
“From supporting more resilient and sustainable local farming operations, to providing employment and training opportunities and direct support for community and First Nations groups, the Pottinger Energy Park is designed with the region’s long-term prosperity in mind.”
Spark Renewables, now owned by Malaysia’s Tenaga Nasional Berhad (TNB), the largest listed energy utility in southeast Asia, will be partnering with Danish giant Copenhagen Infrastructure Partners for the development of the Dinawan hub, which will combine 707 MW of wind, 300 MW of solar and a 300 MW, 1200 MWh battery.
Anthony Marriner, the CEO of Spark Renewables, said CIP has an option to buy a minority interest at financial close.
“The project will become a long-term user of products and services in the Riverina region and will be spending a significant amount on Australian-sourced content during construction and the project’s 35-year lifespan,” Marriner said in a statement.
“We have made over 30 commitments that support the clean energy transition through a community fund for local initiatives, advancing First Nations’ accessibility to workforce participation, and next-generation training and education opportunities.”
