The NSW government has signed a deed of commitment with its preferred operator of the Central-West Orana Renewable Energy Zone.

A Consortium comprised of ACCIONA, COBRA and Endeavour Energy (ACEREZ) will now seek approval to deliver, operate and maintain the REZ network for the next 35 years, including high-capacity transmission lines, energy hubs and infrastructure to connect renewables to the electricity grid.

The consortium will also bear delay and cost overrun risks associated with the project, with the government saying this represents the first time it’s competitively procured a new transmission network without the risk being passed on to electricity consumers.

A final contract is expected to be awarded in the middle of the year pending the completion of regulatory and planning approvals.

Construction is expected to start in early 2025, and the REZ is expected to begin operating in in 2027-28.

Network capacity to increase

In what the state government says is another major milestone for the 20,000 square km REZ centred around Dubbo,the REZ’s declaration has been amended to increase the intended network capacity to 6 GW by 2038, with initial capacity expected to be 4.5 GW.

Energy minister Penny Sharpe said the regions are central to delivering the transition to renewables and the government’s REZ delivery authority EnergyCo will consult will local communities throughout the process.

“These milestones are an important step forward in the development of the Central-West Orana REZ, taking it from vision to reality,” she said in a statement.

“It brings us closer to delivering clean, affordable and reliable energy to households and businesses across NSW for decades to come, helping to meet newly legislated Net Zero targets in NSW.

“EnergyCo will continue working closely with the community in the planning and delivery of the Central-West Orana REZ.”

The Central-West Oranz REZ, one of five planned for NSW, will support up to $10 billion in private investment in wind, solar and storage projects, ACCIONA says.