EnergyCo, New South Wales’ (NSW) renewable energy zone coordinator, has signed the project deed with Ausgrid, the network operator in Sydney, and the Central Coast and Hunter regions of NSW state, to deliver the Hunter–Central Coast (HCC) renewable energy zone (REZ) network infrastructure project, enabling construction to commence on network upgrades to support renewable energy integration in the state.
Ausgrid will deliver an additional 1 GW of network transfer capacity, representing the maximum volume of electricity that can be exported from the REZ at any given time. The project is designed to support the connection of around 1.8 GW of new renewable generation and storage, strengthening supply reliability and mitigating price volatility as coal-fired power stations progressively retire.
The Hunter–Central Coast REZ network infrastructure project is the first of its kind in NSW, as it will primarily involve upgrading Ausgrid’s existing 132 kV sub-transmission towers and conductors rather than constructing extensive new overhead transmission infrastructure. This approach is intended to reduce impacts on local communities and the environment, while accelerating delivery. The Project Deed follows a revenue determination by the Australian Energy Regulator, confirming that Ausgrid will undertake the works in a prudent and efficient manner to minimise cost recovery impacts on consumers. The plan is to integrate the upgraded network with higher voltage systems like the new 500 kV Hunter Transmission Project, to boost renewable energy capacity, aiming for 1 GW of transfer capability.
Under the agreement, Ausgrid will design, build, finance, operate and maintain the network infrastructure. The scope of works includes upgrading approximately 85 km of sub-transmission lines, constructing 18 km of new underground fibre optic cable in the Upper Hunter, building two new energy hubs (substations), augmenting several existing energy hubs, and augmenting underground fibre optic circuits in the Upper Hunter region. The proposed network infrastructure upgrades run from Kurri Kurri to Muswellbrook.
The HCC REZ extends from the Upper Hunter in the north to the Central Coast in the south, covering the Newcastle, Lake Macquarie, and Port Stephens regions. The REZ is expected to attract up to AUD3.9 billion in private investment, support an average of around 590 direct jobs per year during construction, and create approximately 220 ongoing operational jobs from 2030, alongside indirect employment across manufacturing, transport, retail, and local services.
The construction of the project is expected to start in early 2026, with the additional 1 GW of transfer capacity targeted to be available by 2028.
(AUD1=USD0.66)
