South West Renewable Energy Zone powers up
Released by: Minister for Energy and Climate Change
In a major milestone, four wind, solar and battery projects have been granted the right to connect to new power lines in the South West Renewable Energy Zone (REZ).
These landmark projects will help keep the lights on in NSW and deliver long-term benefits for local workers, communities and electricity consumers.
EnergyCo has granted access rights to wind, solar and large-scale battery projects with a combined generation capacity of 3.56 gigawatts. That’s enough to power more than 1.6 million homes a year.
This follows a competitive access rights tender process by AEMO Services Limited. The strong level of interest and competition between developers is a testament to the high quality of the renewable energy resources in the South West REZ.
The grant of access rights provides more certainty to communities in the south west of NSW about the renewable energy projects that will be developed in the region over coming years.
The access fees paid by these projects will fund community benefits programs that will deliver legacy benefits informed by community priorities.
The projects are Origin Energy’s Yanco Delta wind farm, Spark Renewables Dinawan Energy Hub, Someva’s Pottinger Energy Park and BayWA’s Bullawah Wind Farm:
| Developer | Project | Project type | Maximum capacity (megawatts/MW) |
|---|---|---|---|
| Origin Energy Pty Ltd | Yanco Delta | Wind | 1,460 MW |
| Spark Renewables | Dinawan Energy Hub | Wind, solar and battery | 1,007 MW |
| Someva Pty Ltd/AGL Energy Hubs Ltd | Pottinger Energy Park | Wind and battery | 831.2 MW |
| BayWa r.e. Projects Australia | Bullawah Wind Farm | Wind | 262.3 MW |
The projects include more than 700 megawatts of battery storage, capable of powering up to 300,000 households during peak demand.
The granting of access rights is a key milestone in the Minns Labor Government’s plan to unlock reliable renewable energy for homes and businesses, and put downward pressure on prices.
The South-West REZ projects will play a critical role in ensuring reliable, more affordable and clean energy as the state’s existing power stations retire. The REZ is expected to create more than 2,800 jobs at the height of construction.
This includes opportunities for around 265 apprentices, reflecting a strong commitment to skills development and training.
Quote attributable to Minister for Climate Change and Energy, Penny Sharpe:
“The South West Renewable Energy Zone is expected to drive more than $17 billion in private investment in solar, wind and energy storage projects, and this landmark tender shows the high interest in investing in NSW.
“These projects will help ensure NSW has enough renewable energy generation and storage when coal-fired power stations retire. They also give certainty to host-communities, who will directly benefit from the fees paid by these companies to connect to the REZ.”
Quote attributable to EnergyCo chief executive, Hannah McCaughey:
“We had strong interest from industry in the South West Renewable Energy Zone access rights tender. The access scheme will also ensure we make the best use of new power lines, to put downward pressure on energy bills for everyone in NSW.
“The first projects are expected to come online from 2027 to 2030, which will help keep the lights on and secure our energy future.”
Further information:
What is a Renewable Energy Zone?
- REZs will group new wind and solar power generation and batteries into locations where it can be efficiently stored and transmitted across NSW.
- Five zones have been identified and will keep NSW electricity reliable as coal-fired power stations retire, delivering large amounts of new energy to power our regions and cities.
- REZs will help deliver lower wholesale electricity costs and place downward pressure on customer bills through increased competition and efficient use of the network, while supporting local jobs and business opportunities during construction and operation.
Where is the South West Renewable Energy Zone?
- The South West REZ is centred around Hay and takes in towns including Balranald and Buronga.
- The location was chosen due to an abundance of high-quality wind and solar resources, proximity to existing and planned high voltage transmission including Project EnergyConnect, relative land-use compatibility and a strong pipeline of proposed projects.
- At its peak, this REZ is expected to support over 2,000 construction jobs in the region.