State to spend $225 million to help critical REZ connect 1.3 GW new of wind and solar

The New South Wales Labor government has announced a $225 million budget spend on critical grid upgrades to unlock the full potential of one of the state’s most important renewable energy zones, that is host to some of the state’s biggest new wind and solar projects.

State energy minister Penny Sharpe says the new funding will unlock 1.3 gigawatts (GW) of network capacity in the South West Renewable Energy Zone (REZ) – more than half of its total 2.5 GW – and enable the extension of the transmission network through to Dinawan substation.

The money will also give access rights holders the certainty they need to progress their projects, including Origin Energy’s huge 1.45 GW Yanco Delta wind farm, which is approved for construction in the REZ, but is still yet to reach a final investment decision.

Other projects lining up to be developed in the zone include BayWa RE’s Bullawah Wind Farm, the Pottinger Energy Park being co-developed by Someva Renewables and AGL, and Spark Renewables’ Dinawan Energy Hub.

“Renewable energy is the cheapest form of new energy, and connecting more of it to the grid is one of the most important things we can do to put downward pressure on electricity bills,” Sharpe said on Wednesday.

“This investment will help make sure NSW has reliable energy as ageing coal fired power stations retire, while making sure communities in the South West share in the jobs, investment and opportunities created by the energy transition.

“This funding for the South West REZ will ensure the grid is fit for purpose, with vital upgrades to bring a significant amount of new renewable energy online for everyone in NSW.”

Sharpe says the money will be used to facilitate the appointment of early works contractors on the required 500 kV transmission upgrade, while also progressing project development and design and procuring an additional transformer and other critical long-lead items like circuit breakers.

The funding will also support early-stage construction works at the Dinawan substation to increase its capacity, which when completed will allow the existing lines connected to Dinawan will be used to run power at a higher capacity.

On the community side of the equation, Sharpe has also announced an initial $60 million has been unlocked from the government’s community and employment benefit program, targeting the South West REZ.

EnergyCo, which is leading the delivery of the state’s renewable energy zones, is seeking input from councils and the community to best design the funding program and ensure the investment targets priorities that matter to the local communities.

In addition to the towns and communities within the SW REZ, the Minns Labor government also announced that funding will be made available to those immediately outside the REZ boundary, but who are still affected by development of the new infrastructure. For the SW REZ, this includes towns such as Coleambally, Jerilderie, and Deniliquin.

Further contributions to communities will continue from access fees paid by renewable energy projects with agreements in place to connect to the REZ’s new transmission lines.

“EnergyCo is working to ensure the best outcomes for communities hosting new infrastructure, and South West communities are playing a critical role in keeping the lights on in NSW,” said Hannah McCaughey, EnergyCo CEO.

“By supporting regional development across the South West, we hope to bring exciting new opportunities to local communities.”

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