The State Government of New South Wales (NSW) in Australia has officially 'declared' its 2nd Renewable Energy Zone (REZ) in New England which is a major milestone in realizing the same as it sets out the intended network capacity or size, location and infrastructure needed for it. The declaration also enables and sets the scope of key legislative functions under the Electricity Infrastructure Investment Act 2020, including access schemes and REZ network solutions.
To be implemented by the Energy Corporation of NSW (EnergyCo NSW), the New England REZ is to have a minimum of 8 GW renewables capacity, but the number could grow with registrations of interest (ROI) it received for the zone, which added up to 34 GW in August 2021 (see 34 GW In Response To 8 GW New England REZ).
"The New England REZ will drive AUD 10.7 billion ($7.5 billion) in private investment, around 830 operational jobs, as well as 1,250 construction jobs each year," stated EnergyCo CEO James Hay. "It's phenomenal to get this REZ declared as New England has some of the best natural energy resources in the country, including some of the state's best potential sites for pumped-hydro and strong investor interest."
It is also expected to be a major revenue generator for landholders as they could earn around AUD 660 million in lease payment to 2042.
Hay describes REZs as the modern-day equivalent of a power station comprising low-cost renewables with energy storage ensuring back up and transmission services. The state government plans to invest AUD 78.9 million ($55.6 million) to support the New England REZ development.
The New England REZ is the 2nd of 5 planned REZs of the state government. The government has already declared Central-West Orana REZ for which it attracted 27 GW capacity for 3 GW offered.
The remaining REZs planned are in South-West, Hunter-Central Coast and Illawarra regions.