The state’s first Renewable Energy Zone (REZ) is one step closer to delivering electricity into the grid after ACEREZ Partnership (ACEREZ) was granted a transmission operator’s licence for the Central-West Orana REZ transmission system.
ACEREZ, a consortium of Acciona Concesiones, Cobra and Endeavour Energy, was selected by the Energy Corporation of NSW (EnergyCo) as the preferred network operator to deliver the Central-West Orana REZ transmission system, following a rigorous competitive tender.
The Minister for Energy Penny Sharpe granted the licence, which will enable ACEREZ to design, construct, own and operate the Central-West Orana REZ transmission system, which will connect renewable energy projects within the REZ to the existing Newcastle, Sydney and Wollongong load centres.
When operational, the Central-West Orana REZ transmission system will unlock 4.5 gigawatts of network capacity, allowing generation and storage projects to connect at scale. This is expected to deliver $3 billion in net benefits for NSW energy consumers, drive $20 billion in regional investment and support 5000 jobs during peak construction.
The Central-West Orana REZ is a vital component in the government’s Roadmap to powering the state with affordable, clean and reliable energy.
The decision follows the Independent Pricing and Regulatory Tribunal’s (IPART) recommendation to the Minister for Energy on ACEREZ’s application for the licence, published in its final report.
In granting the licence, the Minister included several licence conditions, some unique to ACEREZ, which were recommended by IPART and developed in response to public consultation, including consultation with the NSW Department of Climate Change, Energy, the Environment and Water (DCCEEW), EnergyCo and ACEREZ. These are intended to support safe and reliable operation of the Central-West Orana REZ transmission system. An important condition to support social licence is a requirement for ACEREZ to become a member of an external dispute resolution scheme.
A copy of the ACEREZ transmission operator’s licence, along with IPARTs final recommendation report, are available on the IPART website.
Central-West Orana REZ Key Facts
- The REZ will initially unlock at least 4.5 gigawatts of new network capacity by the late-2020s.
- New transmission infrastructure will enable generators (such as solar and wind farms) participating in the REZ to export electricity to the rest of the network.
- It is expected to bring up to $20 billion in private investment to the Central-West Orana region by 2030.
- At its peak, this REZ is expected to support around 5,000 construction jobs in the region.
