Multibillion-dollar deal to supercharge NSW renewable energy

Almost $8 billion will be spent on poles, wires and other critical infrastructure connecting renewable energy zones across NSW to the national grid as part of a major deal between the Albanese and Perrottet governments to supercharge electricity supply.

The $7.8 billion deal is expected to be announced on Wednesday as NSW parliament is called back to pass emergency legislation allowing the state government to cap coal prices in an attempt to reduce soaring energy costs.

The federal and NSW governments have agreed to a multibillion-dollar deal to supercharge the east coast electricity supply by connecting major renewable energy zones to the national grid.Credit: Dominic Lorrimer

The Commonwealth government will contribute $4.7 billion from its Rewiring the Nation fund to support NSW connecting eight renewable energy zones to the east coast energy grid, as well as Snowy 2.0.

The money will fund crucial infrastructure, such as transmission lines, to connect wind, solar and other renewable energy sources to the electricity grid and into people’s homes.

Meanwhile, the NSW government will tip in $3.1 billion from the NSW Transmission Acceleration Facility, with the new deal expected to create close to 4000 jobs throughout the regions.

The federal funding is understood to have been secured by NSW as part of the broader national cabinet agreement to introduce caps on coal to curb energy prices.

NSW Premier Dominic Perrottet and Prime Minister Anthony Albanese in Sydney last September.Credit: Dominic Lorrimer

Prime Minister Anthony Albanese said connecting the renewable energy zones, which include the Sydney Ring, HumeLink, and potential offshore wind opportunities, would help transform Australia into a “renewable energy superpower”.

“The Australian economy can seize the opportunity of more affordable and reliable renewable energy over the long term – creating jobs in the regions that have always powered Australia, and insulating ourselves from global fossil fuel shocks at the same time.”

NSW Premier Dominic Perrottet expected the funding deal would help generate $32 billion in private investment in renewable energy infrastructure by 2030.

“This is our opportunity to invest in our future industries that will drive jobs and wealth creation in our state,” Perrottet said.

NSW parliamentarians will descend on Macquarie Street on Wednesday for a one-off emergency sitting to pass legislation placing a temporary cap on coal used for domestic electricity generation.

Parliament sitting was not expected to return until after the March 2023 election, with major refurbishment work underway to the Legislative Assembly and Council. With both houses under construction, MPs will instead sit in the nearby Macquarie Room usually reserved for committees and functions.

Red leather benches from the Legislative Council have been moved into the Macquarie room to facilitate members during the extraordinary sitting.

Federal Climate Change and Energy Minister Chris Bowen said the best and cheapest way to lower energy prices was by increasing firmed renewables across the grid.

“Today’s announcement helps make that a reality by supporting the projects to plug Snowy 2.0 into the grid and linking renewable energy zones to ensure the energy can be supplied from wherever the wind is blowing, and the sun is shining, to where it’s used by households and industry,” he said.

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