NSW government throws weight behind first urban renewable energy zone

EnergyCo and New South Wales government representatives have given impetus to the proposed Illawarra renewable energy zone, tipped to be the state’s first urban REZ, and setting a benchmark for future clean energy collaborations.

May 23, 2025 Ev Foley

Image: NSW Government

EnergyCo, the New South Wales (NSW) coordinator of renewable energy zones (REZs) was joined by state government ministers in the Illawarra region south of Sydney on 23 May 2025 to attend a roundtable event with local stakeholders and discuss plans to create an urban REZ.

Initial discussions were had on what developments can be delivered by 2030, and EnergyCo signed a memorandum of understanding (MoU) with electricity distribution system operator, Endeavour Energy, to jointly develop innovative network and battery solutions within the proposed REZ.

Endeavour Energy General Manager Future Grid and Asset Management Colin Crisafulli signing the MoU with Energy Co Chief Executive Officer Hannah McCaughey.
*Image: NSW Government*

EnergyCo Chief Executive Officer Hannah McCaughey said the Illawarra REZ is real proof that renewables can be built at scale not just in regional areas but also in urban areas, and utilising the power of industry.

“That is really exciting for us to have different types of REZs that are going to serve the customers of NSW with clean, affordable, reliable energy,” McCaughey said.

Minister for Planning Paul Scully said the Illawarra REZ will be refined as discussions and planning proceed, but the opportunity is there to harness good household solar, household batteries, utilise government property, community facilities, and community batteries.

“We can integrate these things in an area that’s willing to lead the charge when it comes to setting a new approach to renewable energy, generation, storage and transmission. ” Scully said.

“The Illawarra has all the components We need to test this out, to trial this, to get this ready to be rolled out to other parts of the state. We’ve got a skilled workforce. We’ve got a port. We’ve got a research -led university that does some brilliant work In in energy research.”

Scully added that the Illawarra also has cutting edge companies innovating clean energy solutions.

“Like Green Gravity with their gravity energy storage system, Hysata who are setting a new agenda when it comes to hydrogen production and like, like Sicona Batteries Technologies, who have signed a huge licensing agreement internationally,” Scully said.

NSW Minister for Planning and Public Spaces Paul Scully.
*Image: NSW Government*

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