Construction is set to commence on the first REZ, with the New South Wales Government awarding a contract and reaching financial close for a major transmission project.
ACEREZ – a consortium of ACCIONA, COBRA, and Endeavour Energy – will design, build and finance the Central-West Orana REZ transmission project and operate and maintain it for the next 35 years.
The landmark project is expected to establish critical infrastructure that will connect solar and wind farms and energy storage to the New South Wales electricity grid.
It will deliver at least 4.5GW of new network capacity by 2028, to connect 7.7GW of wind and solar projects – enough to power more than two million homes each year.
The project is also expected to generate a significant economic boost in the Central-West Orana region and New South Wales as a whole, supporting more than 5000 construction jobs at its peak and bringing $20 billion in private investment into the region by 2030.
This milestone of reaching contract and financial close follows a robust procurement process overseen by the Australian Energy Regulator.
The project is the first competitively sourced REZ transmission project in Australia. EnergyCo implemented a tailored procurement model, that incentivises early delivery and cost efficiency for the network operator, safeguarding long-term interests of energy consumers.
Early works on the project started in February 2025, and construction is scheduled to begin in mid-2025.
The New South Wales Government said it is also investing $128 million in communities which will host the Central-West Orana REZ, through grants for councils as well as community and First Nations groups and projects to inject funding into the area before major construction starts.
New South Wales Minister for Climate Change and Energy, Penny Sharpe, said getting this deal done brings the state closer to delivering more affordable and reliable renewable energy to households and businesses.
“With three out of four of the state’s remaining coal-fired power stations set to close in less than ten years, this REZ will help us meet our future energy needs in order to keep the lights on and avoid price spikes.
“The project will also inject billions of dollars in private investment into the Central-West Orana region by 2030, along with thousands of jobs and opportunities for local suppliers.”
EnergyCo CEO, Hannah McCaughey, said, “We look forward to continuing our relationship with ACEREZ as we move into the delivery phase for the state’s first REZ, which will harness our abundant wind and solar resources to power New South Wales.
“The Central-West Orana REZ is part of a once-in-a-generation extension of the New South Wales electricity grid. It’s a major step in securing our energy future and keeping the lights on as coal-fired power stations retire.”
ACEREZ Chief Executive, Trevor Armstrong, said the contract is a significant milestone and ACEREZ is proud to play a role in powering homes and businesses in New South Wales for generations to come.
“We will work alongside Central-West Orana communities to provide jobs and economic growth and lasting benefits across the region.”
