South West Renewable Energy Zone attracts 15 GW of access right tenders

A show of hands for access rights to the South West Renewable Energy Zone amounts to more than 15 GW of generation and storage infrastructure, more than four times the tender target.

September 12, 2024 Ev Foley

Image: EnergyCo

The New South Wales (NSW) Electricity Infrastructure Roadmap (EIR) Tender 5 for access rights to the South West Renewable Energy Zone (REZ), located between Wagga Wagga and Balranald in the south of the state, amounts to more than 15 GW of generation and storage infrastructure, four times the indicative 3.98 GW target.

The Australian Energy Market Operator (AEMO) Services, which conducted the tender as Consumer Trustee under the NSW EIR, said projects represent more than 15 GW of solar, battery and wind capacity.

Interest was also high in long-duration storage projects, with proposals in response to the tender totalling more than twice the indicative target of 1 GW.

The final projects selected will be chosen on the merit of being operational in the shortest time, in the best financial interest for NSW electricity consumers and delivered in a way that best supports local communities.

NSW Minister for Climate Change and Energy Penny Sharpe said the very strong interest in the tender shows that NSW continues to be a leader in Australia’s energy transition and a highly attractive destination for investment in renewables.

“The interest means that the best projects can be chosen to provide NSW with affordable, clean and reliable energy,” Sharpe said.

An access rights tender for the South West Renewable Energy Zone received 15 GW of generation and storage infrastructure proposals.
*Image: EnergyCo*

AEMO Services’ Executive General Manager Nevenka Codeville said that the response demonstrated the compelling value proposition for the South West REZ.

“From our conversations with investors and proponents, we could see that South West REZ would attract a lot of attention and it’s encouraging that this enthusiasm has been reflected in the slate of proponents who have come forward with bids,” Codeville said.

“Ahead of our next tenders opening later this year, we’re further engaging with industry and other stakeholders to explore how we can help deliver the energy transition in a way that benefits communities and consumers.”

EnergyCo, as the administrator of the South West REZ access scheme will award the access rights in early 2025, on the recommendation of the Consumer Trustee.

Projects that are awarded access rights will pay access fees, which will contribute millions of dollars to the local community through the Community and Employment Benefit Program.

The EIR supports the delivery of at least 12 GW of new renewable energy generation and 2 GW of long-duration storage by 2030.

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