The creation of Renewable Energy Zones involves the grouping of new wind and solar power generation into locations where it can be efficiently stored and transmitted across NSW.

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Five zones across the state, including the Hunter-Central Coast, have been identified as suitable.

EnergyCo is in the early stages of planning the REZ in the Hunter and Central Coast, to utilise the region’s renewable energy resources, existing power stations, rehabilitated mining land, electricity network infrastructure, port and transport infrastructure and skilled workforce.

According to the agreement, Ausgrid will design, build, finance, operate and maintain the network infrastructure for the Hunter-Central Coast REZ.

This will be the first REZ in Australia to leverage the distribution network of poles and wires, rather than a transmission network; Ausgrid will do this by upgrading existing infrastructure.

The Government says the project will allow for the delivery of an additional one gigawatt (GW) of network transfer capacity, to get more renewable energy into the state’s electricity grid.

It will also enable new renewable energy generation and storage providers to connect to the network.

Signing the commitment deed allows EnergyCo and Ausgrid to begin community consultation, finalise the design, finalise regulatory and planning approvals and commence construction, subject to approvals.

Minister for Climate Change and Energy, Penny Sharpe said, “The appointment of Ausgrid demonstrates our commitment to finding innovative solutions to quickly increase the supply of reliable, renewable energy in a way that minimises impacts on communities and the environment.

“Hunter-Central Coast communities will see economic benefits from more jobs, opportunities for local businesses through the local first program, and the potential for new industries to set up in the area.”

Minister for the Hunter, Yasmin Catley said the REZ would “help shore up our electricity system and ensure the Hunter continues to power the state for decades to come”.

“I’m pleased this project will support good, local jobs with Ausgrid guaranteeing that most of its workforce during construction and operation will be from our local area.

“Additionally, the Minns Labor Government is committed to engaging more First Nations people and businesses, women and young people in the project.”

Ausgrid CEO Marc England said, “Ausgrid is proud to be getting on with the job of delivering the first extension to our network in a generation, enabling more renewables for the communities our people both serve and live in.

“By enhancing our existing medium-voltage network, we are enabling a faster and cheaper integration of renewables into the grid, minimising the impact on communities.

“The proposed upgrades will facilitate more than 1 GW of energy into the grid, which is enough to power around one-million homes.”