Central-West Orana REZ to play critical role in NSW energy transformation
Enabling more renewable energy to reach consumers
The CEFC is backing the development of the Central-West Orana Renewable Energy Zone to support the grid connection of 7.7 GW of renewable energy – a critical step in Australia’s transition to net zero emissions.
$750 million
CEFC commitment
Largest
REZ
7.7 GW
renewables
Through this investment, we are seeing CEFC finance “crowd in” substantial additional private sector capital to back this landmark REZ, which will be truly transformational for the NSW energy mix.Ian LearmonthCEO, CEFC
Our investment
The CEFC has committed $750 million in concessional finance, through the Rewiring the Nation Fund, to back the development of the Central-West Orana Renewable Energy Zone (REZ), which is classified as a priority project by the Australian Energy Market Operator.
The CEFC is among a syndicate of financiers giving developer ACEREZ the confidence to accelerate project delivery. ACEREZ, a partnership of ACCIONA, COBRA and Endeavour Energy, was appointed network operator to design, build, finance, operate and maintain the Central-West Orana REZ transmission network. ACEREZ expects construction to begin from mid-2025 with energy to start flowing in late 2028.1
The CEFC eight-year concessional loan aims to accelerate project delivery and lower the overall project cost to NSW electricity consumers.
The CEFC has also committed $490 million to NSW EnergyCo to finance land and biodiversity costs related to the Central-West Orana REZ.
Learn more about how the CEFC is investing in transmission through the Rewiring the Nation Fund.
OUR IMPACT
Unlocking renewable energy potential
The Central-West Orana REZ integrated generation and transmission network will enable as much as 7.7 GW of additional renewable energy power to reach consumers. That’s more than three times the generation capacity of the 2.2 GW Snowy Hydro 2.0 scheme. The project is expected to deliver $3 billion in net benefits for NSW energy consumers, drive billions of dollars in regional investment and support 5,000 jobs during peak construction.
The renewable energy projects hosted by the Central-West Orana REZ could take NSW halfway to its goal of supporting 12 GW of new renewables by 2030.Paul McCartneyRewiring the Nation Fund Chief Investment Officer, CEFC
Benefiting local communities
NSW EnergyCo expects the REZ to bring additional community benefits2 including:
- A Community and Employment Benefit Program which will provide communities in the REZ with $128 million over four years from 2024. This is the first instalment of the hundreds of millions in funding that will flow to local projects and communities over the coming decades and create employment opportunities, collected from fees paid by the wind, solar and energy storage projects connecting to the REZ.
- New income streams for landowners from the lease payments for hosting new renewable energy and storage projects.
- The Strategic Benefit Payment Scheme, which will provide landowners hosting new high voltage transmission projects with a payment of $200,000 per kilometre of easement (indexed to inflation) paid out in annual instalments over 20 years.
- Employment and training programs to promote job opportunities and the use of local content, goods and services.
2. NSW Energy Co recommendations, May 2024
