$1.8 Billion Transmission & Battery Investment Promise for NSW

Given AEMO’s warning last week that Australia’s renewables rollout is lagging, this is timely: the NSW State Government is putting $800 million into its Transmission Acceleration Facility to speed up the transmission build between its Renewable Energy Zones (REZs) and the state’s grid.

The money will also support various benefit schemes planned for communities.

It’s part of a $1.8 billion total investment announced yesterday, which also includes establishing the Energy Security Corporation (ESC).

First cab off the rank will be the Central West Orana REZ near Dubbo, to be followed by the Hunter Transmission Project and the 850 MW / 1680 MWh Waratah Super Battery near Newcastle.

The Central West Orana REZ will take a step forward this month with the state government to submit its environmental impact statement to the Department of Planning and Environment, with a public exhibition to follow “within weeks”.

The Minns Government says the funding is part of a plan to “keep the lights on” during the renewable energy transition.

It said it expects to recover the transmission investment from companies developing REZ projects “once projects reach financial close”. That will then allow investment in further REZ projects.

The Minns Government said it will also budget $1 billion for setting up its Energy Security Corporation (ESC), which could invest in projects such as community batteries and virtual power plants to reduce communities’ reliance on the grid.

The ESC’s investments in commercial projects will operate similarly to the Clean Energy Finance Corporation.

AEMO warned last week in its 2023 Electricity Statement of Opportunities that “urgent and ongoing” investment in transmission and grid-scale renewable projects is required to ensure system stability over the next 10 years, with 62 percent of the NEM’s coal generators slotted for closure during that timeframe.

Original Source: https://www.solarquotes.com.au/blog/battery-transmission-investment-nsw/