The New South Wales Government has signed a commitment deed to appoint a preferred network operator for the Hunter-Central Coast Renewable Energy Zone (REZ).
Under the commitment, Ausgrid will design, build, finance, operate and maintain the REZ network infrastructure.
The State Government said it will be the first REZ in Australia to leverage the distribution network of poles and wires, rather than a transmission network. Ausgrid will do this by upgrading existing infrastructure.
The project is expected to allow for the delivery of an additional 1GW of network transfer capacity, to get more renewable energy into the state’s electricity grid. It will enable new renewable energy generation and storage providers to connect to the network.
The New South Wales Government said the approach demonstrates its commitment to increasing utilisation of the existing grid to boost the connection of more renewable energy in the short-term, which minimises impact on the local community and the environment.
Signing the commitment deed allows EnergyCo and Ausgrid to ramp up community consultation, finalise the design, finalise regulatory and planning approvals and commence construction, subject to approvals.
The Hunter-Central Coast REZ is the second REZ coordinated by EnergyCo to progress to the appointment of a network operator, meaning three of the state’s five planned REZs (Central-West Orana, South West and Hunter-Central Coast) are now reaching the final stages ahead of construction.
The REZ is expected to bring significant economic benefits to the Hunter and Central Coast regions and local communities, including more jobs, by mandating local employment construction targets and opportunities for local businesses.
The REZ is also expected to help power existing industries and emerging green technologies.
EnergyCo will continue engaging closely with the community, industry, local government and other stakeholders as the design and delivery of the renewable energy zone progresses.
New South Wales Minister for Climate Change and Energy, Penny Sharpe, said the New South Wales Government is leading the way when it comes to delivering the infrastructure needed to keep the lights on and prevent electricity price spikes.
“The appointment of Ausgrid demonstrates our commitment to finding innovative solutions to quickly increase the supply of reliable, renewable energy in a way that minimises impacts on communities and the environment.
“Hunter-Central Coast communities will see economic benefits from more jobs, opportunities for local businesses through the local first program, and the potential for new industries to set up in the area.”
New South Wales Minister for the Hunter, Yasmin Catley, said, “The REZ will help shore up our electricity system and ensure the Hunter continues to power the state for decades to come.
“I’m pleased this project will support good, local jobs with Ausgrid guaranteeing that most of its workforce during construction and operation will be from our local area,” she said.
“Additionally, the State Government is committed to engaging more First Nations people and businesses, women and young people in the project.”
Ausgrid CEO, Marc England, said Ausgrid is proud to be getting on with the job of delivering the first extension to its network in a generation, enabling more renewables for the communities its people both serve and live in.
“By enhancing our existing medium-voltage network, we are enabling a faster and cheaper integration of renewables into the grid, minimising the impact on communities.
“The proposed upgrades will facilitate more than 1GW of energy into the grid, which is enough to power around one-million homes.”
