Central-West Orana REZ Access Scheme
The Central-West Orana REZ Access Scheme is the first of its kind in the National Electricity Market. The Access Scheme was formally declared by the Minister for Energy on Monday 19 December 2022. Following consultation, an amended Access Scheme was declared on Friday 5 April 2024.
View the Central-West Orana REZ Access Scheme Declaration
The amended declaration was part of the reforms to enable EnergyCo to allocate the initial tranche of access rights under the Central-West Orana REZ Access Scheme. The updates are in line with the market information notice published in January 2024.
For details on the timing and form of the application process, visit Central-West Orana REZ Access Rights Application Process.
Consultation on the Central-West Orana REZ Access Scheme
Public exhibition of both the Access Scheme Declaration and 2024 update were conducted in line with the statutory process for the declaration of access schemes under Section 24 of the Act.
Central-West Orana REZ Access Scheme Headroom Decision
In December 2023, the Minster for Energy increased the intended network capacity of the Central-West Orana REZ from 3 gigawatts (GW) to 6 GW, noting it will initially operate at 4.5 GW.
The increase in transfer capacity was formalised under the Central-West Orana REZ Access Scheme via a transfer capacity determination.
The network capacity of 4.5 GW allows for 7.7 GW of projects to connect because wind, solar and battery projects can operate at different times of the day and do not all export energy at exactly the same time.
On 16 January 2025, EnergyCo formally updated the amount of renewable generation and storage that can connect to the transmission network in the Central-West Orana REZ to 7.7 GW.
The capacity increase does not increase the scope of the Central-West Orana REZ transmission corridor. Extensions are not currently proposed and would be subject to separate planning and regulatory approval processes. More information on the Central-West Orana REZ transmission project can be found on the project page.
This decision was made, following consultation on the Notification of Draft Headroom Assessment which was published on 1 August 2024. The final decision is contained in the document below:
Central-West Orana Renewable Energy Zone: Headroom Assessment – Final Decision
A factsheet has also been prepared to assist with understanding the headroom assessment and final decision. View the factsheet.
Some of this increased capacity will allow projects listed in the Central-West Orana REZ Environmental Impact Statement to add battery storage technology to deliver energy even when the wind isn’t blowing or the sun isn’t shining, with minimal changes to the overall footprint of the REZ.
If the full 7.7 GW of generation capacity is awarded, it would increase the Community and Employment Benefit Program funding from access fees.
For more information on headroom assessments refer to the Target Transmission Curtailment Limit and Headroom Assessment Method paper.
Key concepts for the Central-West Orana REZ access scheme
The transmission network (poles and wires) that an access scheme applies to. For the Central-West Orana REZ this is Central-West Orana REZ transmission project. All other existing networks in and outside the REZ are not subject to an access scheme.
Also known as transfer capacity. It is the maximum amount of energy that can be transferred (or exported) from the REZ into the external network at any given time.
The transfer network capacity for the Central-West Orana REZ is 6 GW, but the transmission network is being built to operate at a capacity of 4.5 GW.
The network capacity was increased in December 2023 from the original 3 GW when the REZ was declared.
This can also be referred to as aggregate maximum capacity and refers to the total amount of potential generation that can be provided by all renewable generation (wind/solar farms) and storage (batteries) connected to the REZ transmission network.
The aggregate maximum capacity cap is the limit of the amount of generation capacity that can connect to the transmission network. The cap for the Central-West Orana REZ was initially 5.84 GW, however, this has now been increased to 7.7 GW.
The generation capacity is usually higher than the network capacity because wind, solar and battery projects can operate at different times of the day and do not all export energy at the same time.
A flexible energy supply that can be activated to top-up variable supply when the sun isn’t shining, or the wind isn’t blowing.
Firming technologies such as batteries are used in tandem with variable energy sources such as wind and solar. In the case of Central-West Orana REZ, some of the increase in the generation capacity will allow batteries to be added to projects listed in the Central-West Orana REZ Environmental Impact Statement with minimal changes to the footprint of the REZ.
In energy transmission terms, an energy generator such as a wind or solar farm is ‘curtailed’ when the amount of electricity they are allowed to send to the grid is restricted.
A generator may be curtailed because the network has reached its capacity. For example, in the Central-West Orana REZ, during periods where more than 4.5 GW are trying to export energy at the same time.
The access rights regime designed for the renewable energy zones aims to manage curtailment by coordinating the development of the transmission network along with the energy projects that connect into it.
This is the target level of transmission curtailment set for the REZ as a whole.
The target transmission curtailment level for the Central-West Orana REZ is 4.37%.
This means that on average over a typical year, no more than approximately 4.37% of the energy generated in the REZ will be curtailed due to limitations in the REZ transmission network.
An assessment to check whether there is more capacity for generators to connect to a REZ without overloading it.
Generation and storage projects that wish to connect to the Central-West Orana REZ network infrastructure will need to secure an access right.
Access right holders will be charged a yearly access fee that include components to fund community benefit and employment programs. Access fees are set by the Consumer Trustee. Generators would start paying access fees once their projects start the commissioning process.
Previous Consultations
EnergyCo started the process of conducting a headroom assessment to increase the amount of aggregate maximum capacity that can connect in the REZ.
Submission closed on 5 September 2024.
Notification of Draft Headroom Assessment in the Central-West Orana Renewable Energy Zone (August 2024)
The NSW Government published a Draft Central-West Orana REZ Access Scheme for consultation between 22 February and 20 March 2024.
The proposed amendments to the declaration were to provide for EnergyCo, as the Infrastructure Planner under the Act, to allocate the initial tranche of access rights after conducting an expedited application process.
There were no proposed changes to the connection model, terms and conditions, or target transmission curtailment level of the Central-West Orana REZ Access Scheme. The proposed changes did not impact how access schemes benefit the local community.
The proposed updates to the access rights application process were in line with the market information notice published in January 2024.
Supporting materials
The Central-West Orana REZ Access Scheme was formally declared by the Minister for Energy under section 24(1) of the Act on Monday 19 December 2022. The Access Scheme was published in the NSW Government Gazette on Friday 23 December 2022.
A Draft Central-West Orana REZ Access Scheme was placed on exhibition from July to August 2022.
The exhibition followed consultation on the Central-West Orana REZ Access Scheme Issues Paper in March 2021 and the REZ access rights and scheme design: Central-West Orana Consultation Paper in December 2021.
In August 2023, EnergyCo as the Infrastructure Planner, extended the term of the Access Scheme from 20 years to 33 years following consultation with key stakeholders. The Notice under the Renewable Energy Zone (Central-West Orana) Access Scheme Order 2022 is available here.
The extended term aligns with the Central-West Orana REZ Network Operator’s Concession Period and the typical asset life of major generation projects.
Supporting materials
- Notice under the Renewable Energy Zone (Central-West Orana) Access Scheme Order 2022 (August 2023)
- Renewable Energy Zone (Central-West Orana) Access Scheme Order 2022 (December 2022)
- Draft Renewable Energy Zone (Central-West Orana) Access Scheme Order 2022 (July 2022)
- Central-West Orana REZ Access Rights and Scheme Design Positions Paper (July 2022)
- REZ access rights and scheme design: Central-West Orana Consultation Paper (December 2021)
- Webinar: REZ access rights and scheme design consultation (December 2021)
- Central-West Orana REZ Access Scheme Issues Paper (March 2021)
Contact us
For more information, please contact [email protected].