NSW advances $17.8b REZ with grid upgrade deal

Project will connect 3.56GW of new wind, solar and battery capacity to the electricity grid.

The South West Renewable Energy Zone (REZ) has moved closer to delivery after EnergyCo signed a Project Development Deed with Transgrid to upgrade a key section of the electricity network between Jerilderie and Wagga Wagga.

The agreement will support 3.56 gigawatts (GW) of new wind, solar and battery generation by expanding transmission capacity and improving grid reliability.

An initial $60m has also been allocated through the Community and Employment Benefit Program to support local communities and workforce initiatives.

The South West REZ is expected to attract more than $17.8b in private investment and create an average of 1,690 direct construction jobs each year during the construction phase, along with hundreds of ongoing operational roles.

The project is also expected to boost demand across manufacturing, transport, retail and other local industries.

The agreement covers several major transmission infrastructure upgrades, including increasing the capacity of the Dinawan Substation from 330 kilovolts (kV) to 500kV, constructing a new switchyard at the substation, upgrading 11 kilometres of the 330kV transmission line between the Gugaa and Wagga Wagga substations, and converting the existing Dinawan–Wagga Wagga transmission line from 330kV to 500kV.

The milestone follows the NSW Government's recent $225m investment to accelerate the South West REZ.

The project is expected to increase the supply of low-cost renewable energy, helping reduce pressure on electricity prices whilst delivering economic benefits to regional communities.