Critical NSW transmission access decision now expected by February as largest developers jockey for position

Renewable energy developers will imminently find out if they have secured access to a transmission line key to the nation’s push for net zero.

Australia’s largest renewable energy developers will be informed whether they have secured transmission access to a much-coveted development site within weeks, The Australian understands, a decision that threatens to leave some of the country’s largest renewable energy developers disappointed.

The NSW South West Renewable Energy Zone (REZ) – one of five the state has earmarked for a concentration of large-scale wind and solar power generation, and batteries – has attracted a plethora of Australia’s largest developers.

But The Australian last year revealed that demand would outstrip the capacity of the transmission line and competition for access would be intense.

The results of the first tender for capacity is now scheduled by the end of February.

The decision from AEMO Services, which is evaluating the tenders, is much anticipated as bidders are pushing to accelerate the proposed developments.

Power companies including Neoen, Origin Energy, Acciona Energia, Squadron Energy and Iberdrola have zeroed in on the South West REZ, stretching from Murrumbidgee in the east to Buronga in the west.

Origin is pushing ahead with its giant Yanco Delta wind farm in the South West REZ, and industry sources last year said Australia’s largest electricity and gas developer had begun the process of seeking partners for the 1.5GW wind farm and 800MW battery development.

The Yanco Delta wind farm is one of the few onshore wind farms to have secured planning permission in NSW.

Yanco is the most advanced renewable energy project in the South West REZ, giving it an advantage in the race to secure ­access. However, Australian authorities have shown a tendency to allow as many developers as possible access.

The success of Origin will be closely watched by potential investors in the Yanco development and advocates of Australia’s energy transition.

NSW has made the creation of the five renewable energy zones a key pillar of its plan to transition from fossil fuels to renewable energy, with a mix of concentrated zero emission sources allowing the state to minimise the building new transmission lines.

Transmission lines are critical to delivering Australia’s energy transition. Picture: Thomas Kienzle/AFP

The delay to the South West REZ announcement comes as work on the transmission line begins to advance after a series of delays.

Power from the South West REZ will be carried by the near $5bn 500KV ­HumeLink high-voltage transmission line, primarily built to serve Snowy Hydro. With line constraints, the South West REZ will house about 2.5GW of new renewable energy projects, much less than other REZs.

Works on HumeLink will begin within weeks after the Transgrid board gave the development the go-ahead after federal and state approvals.

The Australian Energy Market Operator has said work on HumeLink and five other transmission lines must be completed urgently or the National Electricity Market will face a decade of unreliable supplies.

The allure of the region contrasts significantly with the New England REZ, where nearly all developers insist new projects will struggle to secure community support and therefore planning approval.

The New England REZ has been earmarked to house 8GW of renewables and batteries, but large parts of the region have signalled their opposition to onshore wind and solar projects, a stance likely to delay any planning applications.

Delays or even suspension of developments in the New England REZ will be a major blow to Australia’s transition goals.

The federal government hopes to see renewables generate more than 80 per cent of the country’s electricity by 2030, but it is well behind schedule.

NSW is particularly sluggish. Last year it agreed to keep its largest coal power station, Origin’s Eraring, open for up to four years longer than scheduled.

Originally published as Critical NSW transmission access decision now expected by February as largest developers jockey for position