Australia’s EnergyCo increases New South Wales REZ size to 7.7GW

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The New South Wales government initially announced an increase in the REZ’s intended network capacity in December 2023. Still, EnergyCo had yet to formally confirm an increase in projects able to connect.

The network capacity of the Central-West Orana West REZ will initially operate at 4.5GW. This network capacity enables up to 7.7GW of solar PV, wind and battery energy storage system (BESS) projects to inject power into the grid, as they will be doing so at different times of the day and not all exporting energy simultaneously, EnergyCo said.

One of the perks of this increased capacity means that projects listed within the Central-West Orana REZ Environmental Impact Statement (EIS), submitted in October 2023, which included measures to avoid, minimise, or mitigate potential environmental and community impacts, could add additional co-located BESS to capture renewable energy generated from solar PV and wind to be exported at times of low output.

EnergyCo also confirmed that the increase in capacity means that the company would increase the Community and Employment Benefit funding from access fees, which is currently at an initial AU$128 million (US$79 million).

The Central-West Orana REZ will be built on roughly 20,000 km2 near Dunedoo, Mudgee, and Dubbo, a rural area about 330km northwest of Sydney. It will potentially unlock an estimated AUS$20 billion in private investment in solar PV, wind, and energy storage.

Energy storage developer Akaysha Energy is one such company exploring the opportunities within the Central-West Orana REZ via its proposed 1,660MWh 4-hour duration Orana BESS. In July 2024, 11 banks agreed to lend AU$650 million towards its development.

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