Big step forward for the state's next Renewable Energy Zone in the Hunter and Central Coast

The Minns Labor Government has reached a major milestone in the transformation of the state's energy system, signing a commitment deed to appoint Ausgrid as the preferred network operator for the Hunter-Central Coast Renewable Energy Zone (REZ).

Ausgrid will design, build, finance, operate and maintain the REZ network infrastructure.

This 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.

This approach demonstrates the NSW Government's 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.

The project will allow for the delivery of an additional 1 gigawatt (GW) 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.

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.

Under the Minns Labor Government, the Hunter-Central Coast REZ is the second REZ coordinated by EnergyCo to progress to the appointment of a network operator. It means three of NSW's five planned REZs (Central-West Orana, South West and Hunter-Central Coast) are now reaching the final stages ahead of construction.

The REZ will 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 will also 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.

Quote attributable to Minister for Climate Change and Energy, Penny Sharpe:

"Under the Minns Labor Government, NSW 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."

Quote attributable to Minister for the Hunter, Yasmin Catley:

"The Renewable Energy Zone 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.

"Additionally, the Minns Labor Government is committed to engaging more First Nations people and businesses, women and young people in the project."

Quote attributable to Ausgrid CEO, Marc England:

"Ausgrid is proud to be getting on with the job of delivering the first extension to our network in a generation, enabling more renewables for the communities our 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 1 GW of energy into the grid, which is enough to power around one-million homes."

Further information:

What is a Renewable Energy Zone?

Renewable Energy Zones will group new wind and solar power generation into locations where it can be efficiently stored and transmitted across NSW. Five zones have been identified and will keep NSW electricity reliable as coal-fired power stations retire, delivering large amounts of new energy to power our regions and cities.

REZs will help deliver lower wholesale electricity costs and place downward pressure on customer bills through increased competition, while supporting local jobs and business opportunities during construction and operation.

Where is the Hunter-Central Coast Renewable Energy Zone?

EnergyCo is in the early stages of planning the REZ in the Hunter and Central Coast regions which have excellent renewable energy resources and can utilise existing power stations, rehabilitated mining land, electricity network infrastructure, port and transport infrastructure and a skilled workforce.

The Hunter-Central Coast REZ takes in cities and towns including Newcastle, Maitland, Cessnock, Singleton and Muswellbrook.

Photographs available: https://bit.ly/3BGDV5l