The first stage of the Hunter-Central Coast Renewable Energy Zone (REZ) network infrastructure project has been completed, delivering 350 megawatts of additional network capacity and moving the project closer to its target of unlocking 1 gigawatt of capacity by 2028.
EnergyCo commissioned Ausgrid to undertake the network upgrades, which are designed to prepare the electricity system for new renewable generation and storage projects connecting across the Hunter and Central Coast.
The completed works account for more than one-third of the total additional capacity required under the REZ network infrastructure program.
Fibre network forms first stage of upgrade
Stage 1 focused on communications infrastructure, including the installation of new fibre optic links between Muswellbrook Switching Station, Muswellbrook Bulk Supply Point and Mitchell Line Switching Station.
The works were designed to build on existing electricity infrastructure rather than requiring extensive new construction, allowing the Upper Hunter network to operate more efficiently while preparing for future energy connections.
EnergyCo Chief Executive Hannah McCaughey said the completion of the first stage provided confidence for future renewable energy developments planned for the region.
“EnergyCo welcomes the completion of this important milestone and reinforces that construction is underway to ensure the Hunter will continue to play a critical role in powering NSW. With these works complete, it will provide greater certainty to renewable energy generators to connect to the Hunter-Central Coast REZ by 2028.”
A different approach to renewable energy zone infrastructure
The Hunter-Central Coast REZ is the first renewable energy zone project in Australia to focus on upgrading existing distribution poles and wires rather than relying entirely on new transmission infrastructure.
The REZ network infrastructure project is expected to connect an additional 1.8 gigawatts of renewable generation and storage projects and support 590 construction jobs, along with 220 ongoing local positions once operational.
Future works include upgrades to approximately 85 kilometres of sub-transmission lines, installation of 18 kilometres of underground fibre optic communications cable, construction of energy hubs at Sandy Creek and Antiene in the Muswellbrook local government area, and upgrades to existing substations.
Ausgrid Chief Executive Marc England said the completed works marked an important point in the project’s delivery.
“This is an exciting milestone for the Hunter-Central Coast REZ project. We’re proud of the progress our teams have already made to get the network ready for new connections. It’s another step towards delivering more affordable, reliable power for customers across the Hunter.”
Capacity designed for future growth
The Hunter-Central Coast REZ spans nine local government areas including Muswellbrook, Singleton, Cessnock, Maitland, Port Stephens, Newcastle, Lake Macquarie, Dungog and the Central Coast.
EnergyCo identified the region as well suited to renewable energy development because of its existing electricity infrastructure, industrial base, transport networks, rehabilitated mining land and skilled workforce, port access and skilled workforce.
The 1 gigawatt network capacity set out in the REZ declaration was based on assessments that identified more than 2 gigawatts of proposed wind and solar generation projects in the Upper Hunter region around Muswellbrook.
According to EnergyCo, the initial capacity was considered sufficient to support expected renewable generation because of the variable output of wind and solar projects.
The agency has also indicated that the capacity of the Hunter-Central Coast REZ may grow over time as coal-fired power stations retire, mining land is repurposed and offshore wind projects develop.
Part of a wider transformation across the Hunter
The REZ forms part of a broader package of energy projects planned for the Hunter and Central Coast, alongside the Hunter Transmission Project, the Waratah Super Battery and transmission infrastructure linking the New England Renewable Energy Zone to the rest of NSW.
EnergyCo has stated that the Hunter Transmission Project could provide up to 8 gigawatts of additional transfer capacity from inland renewable energy zones to support existing industries, including Tomago Aluminium, as well as emerging sectors such as hydrogen production.
The completion of the first stage of the HCC REZ signals that the transition from planning to construction is now underway, with new network infrastructure beginning to create the capacity needed for the next generation of energy and industrial projects.
