The New South Wales government has earmarked AU$2.1 billion (US$1.36 billion) for transmission infrastructure to connect its Renewable Energy Zones (REZ) and support utility-scale renewable energy and storage projects.
The AU$2.1 billion investment, revealed in the state’s 2025-26 Budget, will be spread over four years and delivered via the Transmission Acceleration Facility (TAF).
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This facility, first revealed in 2022 and described as a recycling funding facility, is being delivered by the Energy Corporation of New South Wales (EnergyCo).
According to PV Tech, the New South Wales government has committed to delivering at least five multi-gigawatt REZ facilities statewide. These will be connected to the grid and National Electricity Market (NEM) and could be critical in ensuring stability as coal-fired power plants are withdrawn over the next couple of decades.
The five REZs include the Hunter-Central Coast, the South-West, New England, Central-West Orana, and Illawarra. The latter will be the state’s first urban REZ, leveraging rooftop solar PV, community battery energy storage systems (BESS), and virtual power plants (VPPs).
Central-West Orana recently became Australia’s first REZ to begin construction. It is being delivered by ACEREZ, a consortium of ACCIONA, COBRA and Endeavour Energy.
By 2028, it will deliver at least 4.5GW of new network capacity. It will also help connect 7.7GW of wind and solar PV generation projects to the grid, an increase from the initial 6GW proposed.
The New South Wales Budget also includes AU$115 million for a Logistics Precinct at Newcastle Port, one of Australia’s largest seaports and the world’s largest coal port. This Logistics Precinct will support the delivery of the REZs.
Clean Energy Council: Budget allocation ‘sends a powerful message’
Kane Thornton, chief executive of trade association the Clean Energy Council, believes the funding sends a powerful message that the New South Wales government is fully committed to tackling the challenges of the energy transition.
“This Budget announcement marks a major step forward in fast-tracking the construction of transmission lines and energy storage systems necessary to integrate new wind and solar projects into the grid,” Thornton said.
“With this investment, New South Wales continues to lead the nation in its dedication to building the infrastructure needed to unlock the full potential of renewable energy while phasing out outdated and unreliable coal-fired power stations.
“This commitment highlights the government’s resolve to ensure that NSW’s energy grid can effectively support the transition to renewable energy, while also tapping into the job and economic opportunities that come with it.”
Last year, Kane Thornton told PV Tech Premium that Australia needs around 6-7GW of utility-scale renewable energy and 3GW of rooftop solar PV per year. He also noted the “enormous” growth Australia is beginning to see in hybrid renewables-plus-storage projects.
