The Energy Corporation of New South Wales (EnergyCo) has obtained Commonwealth planning approval for Australia’s first Renewable Energy Zone (REZ): Central-West Orana.
As confirmed yesterday (8 August), securing planning approval for the 4.5GW project brings the development closer to construction. EnergyCo stated it will now begin awarding the final contract to the preferred network operator for designing, building, operating, and maintaining the transmission line network for the Central-West Orana REZ.
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Readers of PV Tech will be aware that the Central-West Orana REZ secured NSW planning approval in late June 2024. At the time, the state government said this marked a “significant milestone” in the project’s development timeline and would pave the way for the construction of essential transmission infrastructure to connect large-scale solar, wind, and energy storage projects to the electricity grid.
Due to the scale of the project and the potential impact it could have on Australia’s infrastructure and environment, EnergyCo also needed to seek Commonwealth planning permission. With both now secured, the project transitions into the delivery phase.
EnergyCo’s chief executive, James Hay, hailed securing planning permission for the project stating that it means the project has taken a “huge step forward in progressing 12GW of generation”.
“This is the first REZ in the country to obtain full planning approval, paving the way for a significant boost in renewable energy generation to replace ageing coal-fired power stations. The Central-West Orana REZ isn’t just about clean energy. This project will bring long-term financial benefits to both NSW electricity consumers and the local communities where the REZ will be built,” Hay said.
“EnergyCo will continue to work closely with local communities, and the preferred network operator to finalise the project to financial close.”
NSW submitted an Environmental Impact Statement (EIS) for the REZ in October 2023, which included measures to avoid, minimise, or mitigate potential environmental and community impacts.
The project’s financial close is scheduled for the second half of 2024. Construction works are expected to begin in late 2024, and the initial operation is anticipated in 2028.
Last week (2 August), EnergyCo confirmed that it had started conducting a headroom assessment to increase the amount of aggregate maximum capacity that can connect in the REZ from 3GW to 6GW. The headroom assessment is a technical process primarily designed to support generation and energy storage projects that are already working with EnergyCo and covered by the Central-West Orana REZ.
PV Tech previously reported that the NSW government is developing at least five separate multi-gigawatt REZ facilities connected to the grid and partially using long-duration energy storage (LDES) to replace traditional centralised power plants. The five REZ include the Hunter-Central Coast, the South-West, New England, Central-West Orana, and Illawarra.
The REZ are not restricted to NSW but are scattered across the country’s states. Queensland, for instance, recently published a roadmap detailing how it would develop its 12 REZs. Victoria, on the other hand, has identified six REZ locations.
