Network operator

New England Renewable Energy Zone network operator procurement update

17 December 2024

EnergyCo’s recent progress on the New England Renewable Energy Zone (REZ) includes:

• developing the project scope, including working with landowners and community to refine the alignment and with generation and storage project developers
• progressing planning approvals, including to secure Critical State Significant Infrastructure (CSSI) declaration, lodging the Scoping Report and obtaining Planning Secretary's Environmental Assessment Requirements
• continuing environmental studies and field investigations
• working closely with councils on REZ-wide cumulative studies and other matters.

In addition, EnergyCo has re-assessed delivery strategy options for the New England REZ network infrastructure project. Market feedback from registered participants interested in the delivery, operations, maintenance and financing of the project was used to inform this assessment.

EnergyCo is pleased to confirm in this market update the preferred network operator commercial model, indicative procurement timeline and our approach for ongoing collaboration.

The procurement process for the network operator and delivery timeline has been designed to occur in parallel with our ongoing work with the community and landowners, as well as our environmental investigations, as we continue to refine the project.

Network operator commercial model

An ‘enhanced’ regulated concession model is preferred as the commercial model for the New England Renewable Energy Zone network operator package.

EnergyCo is seeking a partner to help to deliver the New England REZ to meet the NSW Government’s vision set out in the NSW Electricity Infrastructure Roadmap.

Recognising the long-term nature of the REZ, EnergyCo is seeking a partner who brings a whole-of-life approach to the design and delivery of the network infrastructure, relationships with generation and storage projects, as well as landowners and the community.

Key characteristics of the procurement approach will include:

• EnergyCo procuring a private sector consortium to design, construct, finance, operate and maintain the network infrastructure on a whole-of-life basis for a specified period
• having a partner founded on a strong operator with demonstrated experience and capability building and operating high voltage transmission networks, supported by active long-term equity participation to drive performance and outcomes, and backed with an innovative and resilient financing plan
• the scope of works comprising Stage 1 and Stage 2 of the project (as described in the Scoping Report) to deliver an intended network capacity of 6GW over the two stages, with the potential for additional capacity in the future
• integration with renewable energy developers to ensure generation and storage projects are connected with transmission infrastructure on a timely basis
• an efficient procurement process, program and associated documentation tailored to suit the project.

Details on the ‘enhanced’ regulated concession model, including draft risk allocation and commercial principles, will be provided to the market early in the network operator procurement process.

Network operator indicative procurement timeline

The indicative procurement timeline for the network operator package up to release of the Request for Proposal (RFP) is set out below.

• Call for Registrations of Interest release – March 2025
• Industry briefing – March 2025
• Invitation for Expression of Interest (EOI) release – April/May 2025
• RFP release – September/October 2025

Ongoing collaboration with the market

Consistent with the NSW Government Principles for Partnership with the Construction Industry, EnergyCo is committed to collaborating with the market to achieve greater certainty, increased productivity, sustainable risk allocations and overall value-for-money outcomes. 

Throughout the network operator procurement process, EnergyCo will incorporate structured interactive processes during the EOI and RFP stages to ensure that: 

• EnergyCo can test and receive feedback from market participants to inform RFP development
• market participants can test ideas and receive feedback, to aid the development of high-quality and well-considered EOIs and proposals.

EnergyCo welcomes market interest in the project. In the interim, keep up to date with the project via EnergyCo’s website at energyco.nsw.gov.au/ne