The NSW Government has taken a fresh step toward establishing its first urban renewable energy zone (REZ) with a community and industry roundtable in Wollongong last week. The roundtable brought together energy experts, business leaders, union representatives and local stakeholders to discuss the Illawarra REZ and identify near-term projects that could be delivered by 2030.
EnergyCo, the agency responsible for leading the rollout of the state’s REZs, is working with Endeavour Energy under a new agreement to explore ways to incorporate consumer and local-scale infrastructure into the region’s future energy network. This includes rooftop solar, household and community batteries, and the use of publicly owned land and large commercial rooftops. The goal is to build around what’s already in place to reduce environmental and community impact.
The Illawarra region’s existing energy, port and transport infrastructure, combined with a skilled workforce and a pipeline of local interest in new energy projects, makes it well-suited to a more decentralised and urbanised approach to renewables.
“This is a chance to leverage the community’s enthusiasm for solar, batteries and EVs to benefit the entire region, as well as pursue longer-term opportunities to support green manufacturing,” Minister for Climate Change and Energy, Penny Sharpe, said.
The REZ was formally declared in February 2023 under the Electricity Infrastructure Investment Act, with a planned initial network capacity of 1 gigawatt. This would allow for the integration of new energy generation and storage in southern NSW and the Illawarra. The declaration also set the geographical area and confirmed EnergyCo’s role as the Infrastructure Planner.
While some proposed energy zones are centred around large-scale greenfield developments, the Illawarra approach is being shaped with a focus on urban integration and community input. Initial geospatial studies to define the REZ boundary began in 2022, and feedback from the public has helped refine the area.
A Registration of Interest process that same year attracted over 40 project proposals valued at more than $43 billion. These included offshore wind farms, battery storage, pumped hydro and green hydrogen projects. While none have been built yet, the level of interest suggests strong potential for future investment, particularly in emerging low-carbon industries.
“The Illawarra is uniquely positioned to show how renewable energy production and consumption can fit into an urban area,” said Minister for Planning and Public Spaces and Wollongong MP, Paul Scully.
The REZ model is part of NSW’s broader Electricity Infrastructure Roadmap, a 20-year plan to shift from coal-fired power to renewable energy. The Illawarra zone, with its urban setting and engaged community, is expected to test new approaches that could inform future urban energy developments across the state.
The local economy is expected to benefit over time, particularly as the region transitions away from coal export dependence. Job opportunities in renewable energy and advanced manufacturing are part of the longer-term plan. EnergyCo has committed to ongoing consultation with local communities, councils and industry groups as the REZ plan develops.
