Enabling infrastructure is needed to support the transition to renewable energy sources, such as solar and wind farms and batteries, to meet Australian and NSW Government’s emissions reduction targets. Renewable Energy Zones (REZ), areas with high quality renewable energy resources such as high solar irradiance and wind, have been identified in NSW as locations that will optimise renewable energy generation.
Transporting renewable energy generation components to the Central-West Orana (CWO) REZ has the following challenges:
- There are limited port locations on the east coast of NSW that meet the storage capacity needs for the import of the electricity generation components (i.e. wind turbines) required to develop the CWO REZ.
- Many roads between key ports and the CWO REZ cannot accommodate the Over Size and Over Mass (OSOM) vehicles required to transport the renewable energy generation components.
Strategic Fit
Resolving the problems associated with storage capacity and road network access will enable the development of the CWO REZ. This will support Australia's emissions reduction target of 43% from 2005 levels by 2030 and the goal of net zero emissions by 2050 by facilitating the transition to clean energy sources. It also contributes to the Australian Government's ambition of achieving 82% renewable energy share in electricity generation by 2030.
The NSW Government’s Electricity Infrastructure Roadmap and NSW Network Infrastructure Strategy (NIS) are key policy documents that form the targets and framework for transforming and delivering the energy transition towards renewable energy. The CWO REZ is identified as a priority project in NSW’s energy transition.
Societal Impact
Resolving the problems of port storage capacity and road network access upgrades will improve freight productivity and trip reliability for users.
A key indirect impact is enabling the timely development of the CWO REZ and associated transition to clean energy sources. If left unaddressed, the shortage in port storage capacity alone could cause delays in the CWO delivery program, resulting in an estimated $75 million per year of lost benefits to consumers due to decreased downward pressure on wholesale energy prices.
Furthermore, three of NSW’s four remaining coal fired power stations are expected to have closed by 2033 at the latest, increasing the risk of increased energy prices and energy shortages if action to develop the CWO and other REZs is not taken in a timely manner.
Deliverability
A coordinated approach to road network and port storage capacity upgrades is required to reduce planning system backlog and ensure approval, procurement and construction processes are delivered concurrently. It will also ensure that upgrades cover the envelope of the OSOM movements required across the REZ, rather than only addressing the needs of specific energy generators.
EnergyCo, the NSW Government statutory authority responsible for leading the delivery of the REZs, is working with relevant NSW Government departments to undertake feasibility studies of port locations, storage capacities and road network upgrades required to resolve the identified problems.
Proponent to develop potential investment options (Stage 2 of Infrastructure Australia’s Assessment Framework), and complete business case development (Stage 3 of the Framework)
There is strong stakeholder support for a coordinated approach to delivering the required upgrades and EnergyCo are engaging closely with Property and Development NSW, port operators and Transport for NSW to progress planning and approvals.
As planning progresses, Infrastructure Australia recommends that the NSW Government continue to engage with local government authorities and community OFFICIAL OFFICIAL stakeholders to identify necessary road network upgrades. Planning should adopt a programmatic approach to ensure upgrades are coordinated along the preferred route to expedite delivery.
A collaborative and strategic approach will help streamline the implementation process and ensure that local needs and concerns are adequately addressed throughout the project's development.