The AER has made its final decision on Ausgrid’s Hunter-Central Coast Renewable Energy Zone (HCC REZ) network infrastructure project (the HCC Project) revenue determination for the 2026–31 regulatory control period.
As required under the NSW Electricity Infrastructure Investment Act 2020 (EII Act) and Electricity Infrastructure Investment Regulation 2021 (EII Regulation), our revenue determination has been made within 126 days of receiving Ausgrid’s revenue proposal on 16 May 2025.
Our revenue determination, including the approved revenues and the amounts payable for the project, will be published following notification from EnergyCo (the Infrastructure Planner for the project) that financial close for the HCC Project has been achieved.
Background
The HCC Project involves the construction and operation of network infrastructure to enable the connection of new renewable energy generation and storage projects in the HCC REZ. It will provide an additional 1 GW of network transfer capacity in three portions:
- Portion 1: Upper Hunter secondary systems modernisation (providing 350MW additional network capacity), scheduled for completion in late 2025.
- Portion 2: Muswellbrook network rearrangement, Singleton to Kurri 132kV link, and installation of a communications link across the Hawkesbury River (providing a cumulative total of 630 MW additional network capacity), scheduled for completion in June 2028.
- Portion 3: Antiene 132kV switching station and Antiene to Singleton 132kV link (providing a cumulative total of 1 GW of additional network capacity), scheduled for completion in July 2028.
The HCC REZ was declared (opens PDF) by the NSW Minister for Energy under section 19(1) of the EII Act in December 2022.
In April 2025 AusEnergy Services Limited (the NSW Consumer Trustee), in accordance with section 31(1)(b) of the EII Act, authorised Ausgrid as the network operator to develop, construct, own, control and operate the HCC Project.
Ausgrid submitted its revenue proposal to us under the NSW non-contestable framework on 16 May 2025.Upon receiving a compliant revenue proposal, we have 126 business days to make a revenue determination. Our role as the economic regulator under the NSW EII framework is to ensure that Ausgrid only recovers the prudent, efficient, and reasonable capital costs for undertaking the authorised network project.
Our assessment of Ausgrid’s HCC Project has been conducted in accordance with the EII Act, the EII Regulation and our Revenue determination guideline for NSW non-contestable network projects. Consistent with the requirements of clause 53(4) of the EII Regulation, our final decision will be published once we receive notification from EnergyCo that financial close has been achieved for the HCC Project.