Deal sealed to unlock 3.56 GW capacity in NSW renewable energy zone

The New South Wales (NSW) government’s planned South West Renewable Energy Zone (REZ) is a step closer to delivery after EnergyCo signed a Project Development Deed with Transgrid to upgrade a key section of the grid between Jerilderie and Wagga Wagga to support 3.56 GW of new renewable energy capacity.

The deed sets out the scope for a series of transmission upgrades that will allow four solar and wind generation and battery energy storage projects that hold access rights under the South West REZ Access Scheme to connect to the National Electricity Market (NEM).

The agreement follows the NSW government’s recent $225 million (USD 157 million) investment to accelerate delivery of the South West REZ.

The infrastructure works include upgrades to the Dinawan substation, including raising its operating voltage from 330 kV to 500 kV and the installation of a new switchyard, as well as upgrading 11 kilometres of 330 kV transmission line between the Gugaa and Wagga Wagga substations and the conversion of the existing Dinawan to Wagga Wagga powerlines from 330 kV to 500 kV, increasing capacity across the corridor. Transgrid will plan, deliver and operate the works.

Transgrid Chief Executive Officer Brett Redman said the upgrades will help bring more clean, affordable and reliable energy into the grid, helping replace capacity lost as ageing -fired generators to exit the system.

“This significant project will reinforce the reliability of the grid and provide real benefits to consumers across NSW and the National Electricity Market, by enabling the connection of lower-cost renewable energy to the grid,” he said.

The South West REZ is one of five designated clean energy zones detailed in the NSW government’s Electricity Infrastructure Roadmap which calls for at least 12 GW of renewable energy backed up by 2 GW of storage by 2030. REZs will also be developed in the New England, Hunter-Central Coast, Central-West Orana and Illawarra regions.

The South West REZ stretches from west of Jerilderie in the state’s south to the Victorian border near Mildura, incorporating the towns of Buronga, Gol Gol, Balranald and Hay.

The zone is traversed by the 900 km EnergyConnect project that links NSW and South Australia. The Victoria NSW Interconnector West (VNI West) is also planned to run through the zone, with Transgrid as the delivery entity for both.

The state government said the South West REZ is expected to attract more than $17.8 billion in private investment and is forecast to support an average of about 1,690 jobs during construction.