Spanish wind heavyweights join running to become New England REZ network operator

A consortium of companies led by Spanish renewable energy heavyweight Iberdrola and another involving Acciona are among six contenders pitching for selection as the network operator for the proposed New England Renewable Energy Zone (REZ) in northern NSW.

EnergyCo says it has received formal expressions of interest (EoI) for the role of network operator in the key zone from consortia comprising companies based in all corners of the globe including Australia, Spain, France, Brazil and India.

“It’s great to see such strong market interest in this project. It brings us one step closer to delivering a new, reliable energy system that will keep the lights on in NSW with lasting regional benefits,” said New England REZ Project Director Doug Parris.

In the role of network operator, the successful consortium will be fully responsible for the transmission lines and associated grid infrastructure required to connect to the New England REZ, including its design, construction, financing, operation and ongoing maintenance. 

With a predicted transfer capacity of 6 GW delivered across two distinct construction phases through to 2034, the New England REZ has the potential to be NSW’ largest.

Spanish interest

Included among the six consortia expressing their formal interest is one spearheaded by global energy company Iberdrola, dubbed “NewLeaf Energy.” Iberdrola is already hugely involved in several European and US electricity networks, and this week announced a huge €5 billion (A$8.9 billion) capital raise aimed at grid expansion across these regions.

Although Iberdrola has a growing portfolio of renewable energy projects in Australia, being selected as the network operator for the New England REZ would be the company’s first venture of this kind in Australia.

The rest of the NewLeaf Energy consortium is made up of Ferrovial, Genus Infrastructure, Gamuda, Capella Capital and Samsung C&T.  

Another of the consortia, dubbed Rezult Networks, is made up of multinational conglomerates Accionia and Cobra who are also both headquartered in Spain.

As part of a separate consortium that also includes development firm Endeavour Energy,  the two companies have already struck a deal with EnergyCo to build the infrastructure needed for NSW’ Central West Orana REZ.

The names of the six consortia and their constituent companies can be found below:

1. Aura Networks (comprising Plenary, Alupar, Webuild, FCC Construction) 

2. Future Energy Networks (comprising AusNet, Pacific Partnerships, GS, Hyundai, Ghella, CPB Contractors, UGL) 

3. NewLeaf Energy (comprising Iberdrola, Capella Capital, Gamuda, Samsung C&T, Ferrovial, Genus Infrastructure) 

4. Powergrid Corporation of India 

5. Rezult Networks (comprising ACCIONA and COBRA) 

6. Verta Energy (comprising EDF Australia)

EnergyCo has said it will now assess submissions from the six consortia before shortlisting two or three that will progress to the request for proposals process later this year.

“We are pleased to be progressing the selection of a network operator that not only brings technical expertise and financial strength but also understands the importance of working with local people,” said EnergyCo chief executive Hannah McCaughey.