NSW has given planning approval to the Hunter-Central Coast Renewable Energy Zone.
The approval clears the way for 1 gigawatt of new network capacity through upgrades to existing distribution lines and two new substations.
The project is the first in Australia to establish a Renewable Energy Zone by strengthening existing poles and wires, rather than building new transmission corridors. The NSW Government argues the approach will reduce costs, minimise land impacts, and speed up delivery.
The Hunter-Central Coast REZ stretches from the Upper Hunter to the Central Coast, taking in Newcastle, Lake Macquarie and Port Stephens. According to the government, most works will occur within existing easements, keeping environmental and community impacts relatively low.
The final planning approval followed exhibition of a Review of Environmental Factors (REF), which drew submissions from councils, state agencies, businesses and individuals. Key issues raised included jobs, procurement, Aboriginal business participation, visual amenity, traffic management, and ongoing engagement.
Ausgrid, the network service provider, has committed to addressing these issues in its delivery plan. The company will also prioritise local jobs and skills training. Construction is forecast to create an average of 590 direct jobs per year, particularly for engineers, electricians and labourers.
The project still requires final sign-off from the Australian Energy Regulator before works can begin.
EnergyCo, which coordinates NSW’s REZ rollout, said the project is central to the state’s energy security as coal-fired power plants close. Currently, about 36 per cent of NSW’s electricity comes from renewable sources. Government figures suggest existing projects will push the state two-thirds of the way towards its 2030 renewable generation target, and 40 per cent of the way to its long-duration storage goal.
The Hunter-Central Coast REZ is separate from the Hunter Transmission Project Environmental Impact Statement currently on public exhibition. Unlike the latter, which is focused on high-voltage transmission, the REZ relies on lower-voltage distribution upgrades.
“Planning approval for the Hunter-Central Coast Renewable Energy Zone project is further evidence of progress on a key upgrade that will help keep the lights on as coal-fired power plants retire,” said NSW Minister for Climate Change and Energy Penny Sharpe.
“Upgrading existing distribution poles and wires allows us to minimise the impact on communities and the environment, and speeds up the delivery of this critical infrastructure.”
Minister for the Hunter Yasmin Catley said: “The Hunter-Central Coast region has always been a powerhouse for industry and innovation and now it’s taking a bold step forward into the clean energy future”.
“Fast-tracking the Hunter-Central Coast Renewable Energy Zone is about more than just new poles and substations, it’s about delivering affordable, long-lasting energy while creating good jobs, supporting local businesses and protecting our communities and environment.
“By upgrading existing infrastructure, we’re minimising disruption, maximising benefits and ensuring our local communities are at the heart of the state’s renewable transformation.”
EnergyCo chief executive Hannah McCaughey said: “Fast tracking the Hunter-Central Coast Renewable Energy Zone project is part of EnergyCo’s plan to keep the lights on for everyone in New South Wales, while providing tangible benefits to Hunter communities and their economies.”
Ausgrid’s CEO Marc England said finalising the Review of Environmental Factors “marks a significant milestone toward delivering upgraded network infrastructure that supports clean, reliable energy for the Hunter–Central Coast region”.
“Ausgrid is committed to working closely with landowners and local stakeholders as we enable a lower cost transition that reduces the impact on our communities,” he said.
The Hunter-Central Coast REZ is one of five zones identified under NSW’s electricity roadmap.
REZs are designed to concentrate new wind and solar developments in areas where they can be efficiently stored and transmitted, avoiding piecemeal grid connections.
The government expects REZs to bring down wholesale prices through increased competition, while also creating local employment during both construction and operation.