Industry invited to help develop renewable energy zone in Australia

Energy project developers and businesses with large electrical loads have been invited to express their interest and take part in developing a major renewable energy zone in Australia.

The government of the New South Wales (NSW) plans to deliver the state’s first five Renewable Energy Zones (REZs) in the Central-West Orana, New England, South-West, Hunter-Central Coast, and Illawarra regions, as set out in the state’s Electricity Strategy, and Electricity Infrastructure Roadmap.

The NSW government has now, through the Energy Corporation of NSW (EnergyCo), the state-controlled statutory authority that will lead the delivery of the REZs, launched a Registration of Interest (ROI) procedure for energy project developers and businesses to take part in the development of the Illawarra REZ, the first step in engaging with industry on the design, location, and delivery of the first of the five REZs.

The ROI will be open for six weeks and will close on Friday, 22 July 2022.

Submissions will be used to inform the best timing, capacity, design, and location of the Illawarra REZ in conjunction with ongoing stakeholder and community consultation, EnergyCo said. This includes consideration to existing primary-land uses, local priorities, existing economic activity, and social values.

The objectives of the Illawarra REZ are to connect multiple renewable energy generators and storage projects to help replace the NSW’s ageing coal-fired power stations which are due to close over the next 10 to 15 years; and to provide cheap, reliable, and clean electricity to homes and businesses in the state.

The Illawarra region is said to already host major energy, port, and transport infrastructure, and to have a skilled workforce.

The region also has the potential to utilise existing dams for pumped hydro, could harness significant offshore wind generation, and has a strong demand for future hydrogen projects, including for future green steel production.

Two separate offshore wind projects have been proposed off the coast of the Illawarra, which could connect to existing infrastructure to generate affordable, clean, and reliable electricity, EnergyCo said.

The projects are the 1.6 GW Wollongong floating wind farm, being developed jointly by Spain’s BlueFloat Energy and Australia’s Energy Estate, and the 2 GW Illawarra floating offshore wind farm proposed to be developed some 20 kilometres off Wollongong/Kembla Port. This project is being developed by Australia’s Oceanex Energy.

Future hydrogen projects are also expected to play a significant role in the Illawarra REZ, EnergyCo said. The NSW government has already announced an AU$ 83 million (US$ 59.5 million) investment in Australia’s first dual-fuel capable hydrogen/gas power plant, Tallawarra B, which includes a AU$ 5 million contribution from the Commonwealth Government.

Tallawarra B will provide over 300 MW of dispatchable energy, forming part of the infrastructure needed to replace the Liddell Power Station and supporting the expansion of green hydrogen. This builds on the NSW government’s AU$ 70 million commitment to develop hydrogen hubs in the Hunter and Illawarra.

The ROI is also open to developers and businesses with projects located outside the Illawarra region as these may also influence the design and location of the REZ, according to EnergyCo.