Australia’s federal government has signed an agreement to connect the New South Wales’ Renewable Energy Zones (REZs) and Snowy 2.0 hydro power project to the grid.
The project, which entails A$7.8bn ($5.2bn) investment, is expected to create more than 3,900 jobs during the construction, and deliver affordable clean energy to the east coast.
The government has committed $4.7bn from the ‘rewiring the nation’ initiative, which aims to connect more renewable power generation into the national grid.
It also will contribute $3.1bn from the NSW Transmission Acceleration Facility, which aims to improve electricity infrastructure and reliability in NSW.
Australia’s Prime Minister Anthony Albanese said: “The Commonwealth has worked hand in glove with the states and territories to shield Australian households and businesses from the worst impacts of the energy crisis caused by Russia’s illegal invasion of Ukraine.
“But as well as that critical short-term action, 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.
“Support for critical transmission infrastructure like Sydney Ring, VNI West and HumeLink, to get across the line, will help transform Australia into a renewable energy superpower.”
According to the government, Australia’s electricity grid needs to be strengthened and reconfigured to meet the demands of the rapidly changing electricity market it serves.
The current agreement enables grid connection for REZ projects including Sydney Ring – Hunter Transmission Project (HTP), and Central-West Orana (CWO) REZ.
In addition, it will also connect New England REZ, HumeLink, VNI West, Hunter-Central Coast (HCC) REZ, Sydney Ring – Southern Sydney Ring, and South-West REZ to the grid.
Australia’s Rewiring the Nation initiative previously supported an agreement between the Commonwealth, and the governments of Tasmania and Victoria.
It was for two undersea cables to connect Tasmania’s Battery of the Nation projects to the mainland, the Kerang Link project, and several REZ projects, including offshore wind.
NSW Premier Dominic Perrottet said: “This joint $7.8 billion funding deal will support the projected $32 billion in private investment for regional energy infrastructure by 2030.
NSW Treasurer and Energy Minister Matt Kean said: “This is a huge win for NSW that will create new energy jobs across the state and unlock cleaner, cheaper and more secure energy.
“This investment will support the delivery of our Electricity Infrastructure Roadmap through fast-tracking the development of REZs and transmission infrastructure.
