Source: afr.com
NSW's proposed renewable energy zone near Dubbo has become the first REZ in the country to secure planning approval, allowing construction to start on a venture capable of delivering 4.5 gigawatts of power this decade.
The milestone for the Central-West Orana zone, which involves 240 kilometres of transmission lines and supporting infrastructure, comes a day after the Australian Energy Market Operator released a $122 billion blueprint for the power grid to support the drive to net zero emissions by 2050.
The operator added a further $3.4 billion of transmission projects to its wishlist of work that needs to get under way in time to help replace retiring coal power plants. Just 490 kilometres of new transmission has been built this decade, with almost 10,000 kilometres needed by 2050.
Covering about 20,000 square kilometres, the Central-West Orana REZ is included in the market operator's five "committed and anticipated" projects for its grid blueprint, the Integrated System Plan. The plan targets start-up at January 2028, and full capacity by August 2028.
Slower than anticipated development of the Central-West Orana REZ contributed to the need to extend the life of Origin Energy's Eraring coal power generator by two years to August 2027, and possibly to 2029.
Community resistance
The Central-West Orana REZ was meant to start next year, and its delays have pushed back plans for the state's second REZ, in the New England region.
Since taking office, the Minns government has thrown funding at the energy transition, including $128 million committed last year to community benefits.
Central-West Orana transmission project
Community resistance is still running strong for the Central-West Orana REZ, with only three of the 401 submissions lodged on the environmental impact statement voicing support. In its approval for the project, the NSW government imposed nearly 100 conditions.
"The Minns Labor government will continue to work closely with communities, the Australian government and the preferred network operator to finalise the project," NSW Minister for Climate Change and Energy Penny Sharpe said on Thursday,
Co-ordinating clean power
Planning Minister Paul Scully described it as "a huge step forward" in progressing the 12 gigawatts of generation envisaged under the state's electricity infrastructure road map.
A final investment decision on the project is due in the second half, with construction beginning this year, a spokesman for Ms Sharpe said. The capital cost of the project to be funded by consumers is put by the government at about $5.45 billion, including design and construction, upfront development costs, property acquisition, biodiversity offsets, and road and network upgrades.
The idea behind the REZ concept is to co-ordinate clean generation and storage on the grid in key regions rich in wind and solar resources, creating modern-day power stations that will outlive coal.
The NSW government is planning at least five REZs.
Covering an area bigger than Wales, the Central-West Orana REZ will enable 4.5 gigawatts of new capacity to be unlocked, increasing to up to 6 gigawatts in its second stage.
The government said the infrastructure would drive up to $20 billion in private investment in solar, wind and storage projects.
It involves building twin 500-kilovolt transmission lines between Wollar and proposed substations at Merotherie and Elong Elong, and 330-kilovolt connections from those lines to new wind and solar farms and storage projects in the region.
A consortium involving Endeavour Energy, Spain's Acciona and contractor Cobra won the competitive process last year to build the Central-West Orana REZ, beating a rival consortium that included pipeline owner APA Group.
Meanwhile, NSW grid owner Transgrid and South Australia's ElectrNet welcomed the expansion of the energy market operator's list of "actionable" projects.
Transgrid CEO Brett Redman said its two projects on the list, Sydney Ring South and the QNI Connect upgrade of an interconnector cable between NSW and Queensland would strengthen the grid and improve access and integration of renewable energy.
AEMO put the cost of Sydney Ring South at $221 million, and QNI Connect at $2.52 billion, give or take 50 per cent.
ElectraNet said it would now carry out more detailed analysis on its proposed Green Energy Network, which the market operator calls the Mid North South Australia REZ Expansion and estimates at $389 million, again plus or minus 50 per cent.
