By 2028, electricity distributor Ausgrid will unlock 1 GW of transfer capacity to supply generation from the Hunter-Central Coast (HCC) Renewable Energy Zone (REZ) to Sydney, Newcastle, and Wollongong load centres, opting to upgrade its existing distribution poles and wires, instead of building new ones.
The decision is the first of its kind in New South Wales (NSW) and will include upgrading approximately 85 kilometres (km) sub-transmission lines, construction of new underground fibre optic in the Upper Hunter, building two new energy hubs (substations), augmenting several existing energy hubs (substations), and augmenting underground fibre optic circuits in the Upper Hunter region.
The strategy to upgrade existing network infrastructure follows the release on 10 December 2025 of the Australian Energy Market Operator’s (AEMOs) Draft 2026 Integrated System Plan (ISP), which says measures such as renewable energy firmed with storage and connected by upgraded networks, presents the least-cost way to supply secure and reliable electricity to consumers.
Hunter-Central Coast REZ
The HCC REZ, which is expected to connect approximately 1.8 GW of new renewable generation and storage, stretches from the Upper Hunter in the north to the Central Coast in the south and includes the Newcastle, Lake Macquarie and Port Stephens regions.
Ausgrid will deliver, operate and maintain the project, which is expected to bring up to $3.9 billion (USD 2.5 billion) in private investment.
Ausgrid Chief Executive Officer Marc England said the company is proud to deliver the critical project and deliver energy reliability for the Hunter.
“We will continue to engage closely with the community and business owners to maximise benefits and minimise project impacts when construction gets underway next year,” England said.
The New South Wales (NSW) government agency leading the development of renewable energy zones (REZs) EnergyCo, has signed the HCC REZ Network infrastructure project deed with Ausgrid, opening the gate for works to begin in early 2026.
The Australian Energy Regulator (AER) has today published its revenue determination on the amounts payable to Ausgrid for the Hunter-Central Coast Renewable Energy Zone (HCC REZ) network infrastructure project (the HCC Project).
Australian Energy Regulator
Following advice from EnergyCo on 17 December 2025, that financial close was achieved on HCC Project, the Australian Energy Regulator’s (AERs) final decision is to allow for $189.6 million in revenue to be recovered over the 2026–31 period via a schedule of quarterly payments to be paid to Ausgrid.
This is a decrease of $14 million (–6.9%) from Ausgrid’s proposed revenue. The revenue determination also includes mechanisms to adjust revenues annually over the regulatory control period.
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