The contract to connect Australia’s first renewable energy zone to the electricity grid has been signed.

Last week, the NSW Government-owned Energy Corporation of NSW (Energy Co) said it had appointed the ACERES consortium to deliver the Central-West Organa REZ transmission project to the NSW electricity grid.

The consortium consists of ACCIONA, COBRA and Endeavour Energy.

It will design, build and finance the project and operate and maintain the transmission for the next 35 years.

Set to become operational in 2028, the project will deliver transmission network capacity to connect solar and wind farms from the Central-West Orana Renewable Energy Zone -Australia’s first renewable energy zone located approximately 350 km northwest of Sydney near Dubbo.

One operational, the project will deliver 4.5 gigawatts of new network capacity to connect 707 gigawatts of wind and solar projects. This is enough to power more than 2 million homes each year.

Originally expected to cost around $400 to $800 billion, the project’s expected costs have now increased to $3.2 billion.

The increases are primarily due to increased project capacity and route changes that were implemented to address community concerns.

Early works started in February. Construction is scheduled to commence mid-year.

All up, the project is expected to support more than 5,000 construction jobs and bring in $20 billion in private investment into the region by 2030.

NSW Minister for Climate Change and Energy Penny Sharpe welcomed the latest development.

“Getting this deal done brings us closer to delivering more affordable and reliable renewable energy to NSW households and businesses,” Sharp said.

“With three out of four of the state’s remaining coal-fired power stations set to close in less than 10 years, this Renewable Energy Zone will help us meet our future energy needs in order to keep the lights on and avoid price spikes.

“The project will also inject billions of dollars in private investment into the Central-West Orana region by 2030, along with thousands of jobs and opportunities for local suppliers.”

 

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