The Victorian and New South Wales Governments have announced they will connect New South Wales’ Renewable Energy Zones (REZs) and plug Victoria’s Snowy 2.0 hydropower project into the grid, in a new deal.
The deal aims to create thousands of new jobs in the energy industry, and deliver energy that’s more reliable, secure and affordable across the east coast.
The joint $7.8 billion deal will back eight critical transmission and REZ projects, supporting more than 3,900 jobs in the regions.
Prime Minister, Anthony Albanese, said, “The Commonwealth has worked hand in glove with the states and territories to shield Australian households and businesses from the worst impacts of the energy crisis caused by Russia’s illegal invasion of Ukraine.”
The Victorian Government’s Rewiring the Nation plan will enable $4.7 billion from the Commonwealth to join with $3.1 billion from the NSW Transmission Acceleration Facility, to help NSW realise its Electricity Infrastructure Roadmap and increase reliability across the east coast grid.
This agreement will unlock multiple critical transmission and REZ projects including; Sydney Ring – Hunter Transmission Project (HTP), Central-West Orana (CWO) Renewable Energy Zones (REZ), New England (NE) REZ, HumeLink, VNI West, Hunter-Central Coast (HCC) REZ, including potential offshore wind opportunities, Sydney Ring – Southern Sydney Ring, and South-West REZ.
NSW Premier, Dominic Perrottet, said, “This joint $7.8 billion funding deal will support the projected $32 billion in private investment for regional energy infrastructure by 2030.
“This is our opportunity to invest in our future industries that will drive jobs and wealth creation in our state.”
Australia’s electricity grid needs to be strengthened and reconfigured to meet the demands of the rapidly changing electricity market it serves.
The agreement marks the next step in its urgent upgrade to ensure reliability and affordability across the network.
Federal Climate Change and Energy Minister, Chris Bowen, said, “The best way to lower energy prices for Australian households and businesses is by increasing firmed renewables across our grid, it is the cheapest and most abundant form of energy across our vast continent.
“Today’s announcement helps make that a reality by supporting the projects to plug Snowy 2.0 into the grid and linking REZs to ensure the energy can be supplied from wherever the wind is blowing and the sun is shining, to where it’s used by households and industry.
“Together, the Sydney Ring, VNI West and the HumeLink projects will increase network resilience and energy reliability for consumers and help put downward pressure on electricity bills in years to come.”
NSW Treasurer and Energy Minister, Matt Kean, said, “This is a huge win for NSW that will create new energy jobs across the state and unlock cleaner, cheaper and more secure energy. This investment will support the delivery of our Electricity Infrastructure Roadmap through fast-tracking the development of REZs and transmission infrastructure.”
This latest Rewiring the Nation backing follows the landmark deal between the Commonwealth, Tasmanian and Victorian governments for two undersea cables to link Tasmania’s Battery of the Nation projects to the mainland; the Victorian leg of VNI West (Kerang Link); and a range of REZ projects, including offshore wind.
