The NSW Government has signed 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, said Minister for Climate Change and Energy, Penny Sharpe.
“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,” said Minister Sharpe.
“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.”
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.
“The Renewable Energy Zone will help shore up our electricity system and ensure the Hunter continues to power the state for decades to come,” said Minister for the Hunter, Yasmin Catley.
“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.”
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.
“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,” said Ausgrid CEO, Marc England.
“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.”
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.
