South West Renewable Energy Zone in NSW secures four-fold interest from indicative target

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NSW is developing at least five seperate REZs. Image: Nextracker.

The first tender for the South West Renewable Energy Zone (REZ) Access Rights in New South Wales (NSW), Australia, has seen interest from projects amounting to around 15GW of solar PV, wind and energy storage.

Confirmed today (12 September), both the Australian Electricity Market Operator (AEMO) Services and NSW government confirmed that registered interest in the fifth tender figure is around four times the indicative target, which was set at 3.98GW.

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AEMO Services stated substantial interest was shown by hybrid projects, combining traditional generation infrastructure, such as wind and solar PV technology, with storage systems.

The tender has attracted bids for long-duration energy storage (LDES) infrastructure that are more than double the target of 1GW. AEMO Services, acting as NSW’s independent Consumer Trustee, can recommend a greater or lesser volume of supported infrastructure than the indicated tender size.

The NSW government states that the intense competition for access rights in the South West REZ will help determine which projects can become operational quickly and be in the best financial interest for electricity consumers. The delivery of these projects will also aim to best support local communities.

AEMO Services’ executive general manager, Nevenka Codevelle, said the response demonstrated the compelling value proposition for the South West REZ.

“The strong demand for REZ access rights demonstrates continued confidence from industry in our tender process and the attractiveness of the REZ proposition,” Codevelle said.

“From our conversations with investors and proponents, we could see that South West REZ would attract a lot of attention and it’s encouraging that this enthusiasm has been reflected in the slate of proponents who have come forward with bids.”

Penny Sharpe, NSW’s minister for climate change and energy, added: “The very strong interest in this tender shows that NSW continues to be a leader in Australia’s energy transition and a highly attractive destination for investment in renewables.

“The interest means that the best projects can be chosen to provide NSW with affordable, clean and reliable energy.”

The South West REZ

The South-West REZ is to be located west of Wagga Wagga Wagga and will straddle the state’s border with Victoria. Since the launch of its original plan in 2018, its location and design have been slightly amended; it is now expected to take up more land and extend as far west as Buronga.

Up to A$2.8 billion (US$1.87 billion) in private investment is expected to be received by 2030. At its peak, this REZ is expected to support over 2,000 construction jobs in the region.

The location had been picked due to an “abundance of high-quality solar and other energy resources, proximity to project EnergyConnect, relative land-use compatibility and a strong pipeline of proposed projects,” the NSW government said.

PV Tech reported that the NSW government is developing at least five separate multi-gigawatt REZ facilities connected to the grid and partially using LDES to replace traditional centralised power plants. The five REZs include the Hunter-Central Coast, the South-WestNew EnglandCentral-West Orana and Illawarra.

The REZs 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.

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