Overview

Sector
Electricity
Segment
REZ
Transmission
Region
New South Wales
Status
Open
Commencement date
Effective date
Regulatory period
-
AER reference
AER24009373

Overview

On 31 July 2025, we received a compliant revenue proposal from Transgrid for the Enabling Central-West Orana (CWO) Renewable Energy Zone Network Infrastructure Project (CWO Enabling Project).

On 20 October 2025, we published our preliminary position paper which provides an early indication of our assessment of Transgrid’s revenue proposal. It identifies the key areas of focus which we consider require most stakeholder attention in making our final decision.

On 22 January 2026, we made our final decision for the CWO Enabling Project, within the required 126 business day timeframe. Consistent with the requirements of clause 53(4) of the EII Regulation, we published the final decision on 14 April 2026, following EnergyCo’s (as the Infrastructure Planner) notification that financial close has been achieved. Our decision sets out the amounts to be paid to Transgrid for the CWO Enabling Project on a quarterly basis from 1 July 2026 to 30 June 2031. These amounts are based upon our assessment of the prudent, efficient and reasonable costs for the project and may be amended annually through approved adjustment mechanisms. 

Under the EII Act, Transgrid is required to be paid by the Scheme Financial Vehicle (SFV) in accordance with our determination. The SFV recovers these costs (and other NSW Roadmap costs) from NSW electricity distributors, who in turn recover these costs from NSW electricity customers via their retail bills.

Background

We have a role in making revenue determinations for Network Operators who are authorised or directed to undertake network infrastructure projects. We are undertaking this role as Regulator under the NSW Electricity Infrastructure Investment Act 2020 (EII Act).

In making the revenue determination, we must consult with the Infrastructure Planner (EnergyCo) and the Consumer Trustee. We evaluate if the costs are prudent, efficient and reasonable based on the principles in the EII Regulation.

The CWO REZ is approximately 20,000 square kilometres in central NSW, centred by Dubbo and Dunedoo. It is the first renewable energy zone to be developed under the NSW Government’s Electricity Infrastructure Roadmap (NSW Roadmap). The CWO REZ was declared by the NSW Minister for Energy and Environment under section 19(1) of the EII Act in November 2021 - download the Government Gazette Number 569 - Electricity and Water (PDF).

On 4 June 2024, the NSW Consumer Trustee authorised Transgrid as the network operator authorised to develop, construct, own, control and operate the enabling infrastructure for the CWO REZ - download the Notice of Authorisation CWO Enabling (PDF). This project comprises upgrades to the existing NSW transmission network to transfer energy from the CWO REZ to major load centres in NSW. It also includes arrangements to potentially acquire the Barigan Creek Switching Station from the CWO Main Project.

We are required to make our determination in accordance with the EII Act, the EII Regulation and the AER’s Revenue determination guideline for NSW non-contestable network projects.

Key Documents

AER – Final decision – Transgrid – Central-West Orana Enabling REZ non-contestable project 2026–31 – January 2026

Authors
AER
Content type
Document

AER – Final decision – Transgrid – Central-West Orana Enabling REZ non-contestable project 2026–31 – Appendix A – Quarterly service payments – January 2026

Authors
AER
Content type
Document

AER – Final decision – Transgrid – Central-West Orana Enabling REZ non-contestable project 2026–31 – Appendix B – Adjustment mechanisms – January 2026

Authors
AER
Content type
Document

AER – Final decision – Transgrid – Central-West Orana Enabling REZ non-contestable project 2026–31 – PTRM – January 2026

Authors
AER
Content type
Document