Proposed Central-West Orana REZ reaches two new milestones

The delivery of the Central-West Orana Renewable Energy Zone (REZ) in New South Wales is progressing following the announcement of a preferred network operator and the amendment of the REZ’s capacity. 

The State Government has signed a commitment deed with ACEREZ – a consortium comprising of ACCIONA, COBRA and Endeavour Energy – as preferred operator for the REZ. With this deed, the consortium signed on to seek approval to design, finance, build, operate and maintain the transmission network for the REZ over the next 35 years. 

Through this agreement, ACEREZ will deliver new high-capacity transmission lines, energy hubs and related infrastructure. 

“ACEREZ is looking forward to working with EnergyCo to deliver the nation’s first Renewable Energy Zone in the Central-West Orana. 

“We’ll work with each of the potential generators to bring the REZ to life and are committed to consulting with the community every step of the way as we help build a sustainable energy future for NSW,” ACEREZ Chief Executive Trevor Armstrong said. 

The new transmission infrastructure will enable renewable energy generators such as solar and wind farms as well as energy storage providers in the Central-West Orana REZ to connect to the electricity grid, providing a reliable supply of clean, affordable electricity for businesses and households across the State while also helping to meet New South Wales’ newly legislated net zero targets. 

Central-West Orana Renewable Energy Zone map (source: EnergyCo)

In addition, the Central-West Orana REZ’s declaration has been amended following public consultation, increasing its intended network capacity to 6GW by 2038 from its initial capacity of 4.5GW to better support future energy needs. 

The increase in capacity will not alter the geographical size of the REZ that covers an area of approximately 20,000km2 around Dubbo. 

The next step in the development of the Central-West Orana REZ is the completion of regulatory and planning approvals ahead of the awarding of the final contract to the network operator and financial close – scheduled for the second half of this year. 

The REZ’s environmental impact statement was recently placed on public exhibition to allow stakeholders to have their say on the project. A response to submissions is expected early this year prior to granting State and Commonwealth planning approvals, expected in mid-2024. 

Subject to approval, construction on the REZ is anticipated to begin in early 2025, with initial operation in 2027-28. 

The Central-West Orana REZ is estimated to generate up to $10 billion in private investment in the region by 2030 and supporting up to 5,000 construction jobs. 

“THese milestones are an important step forward in the development of the Central-West Orana REZ, taking it from vision to reality. 

“It brings us closer to delivering clean, affordable and reliable energy to households and businesses across NSW for decades to come, helping to meet newly legislated net zero targets in NSW. 

“Regional communities are central to delivering our transition to renewables. Those that host new energy infrastructure will share in the benefits of the once-in-a-generation economic opportunity presented by the transition. 

“EnergyCo will continue working closely with the community in the planning and delivery of the Central-West Orana REZ,” Minister for Climate Change and Energy Penny Sharpe said. 

Source: NSW Government – Media Releases; EnergyCo; ACCIONA; Endeavour Energy