Type
Communications
Sector
Electricity
Segment
REZ
Transmission
Issue date
AER reference
AER24009373
Contacts
General enquiries - REZ

The AER has made its final decision on Transgrid’s Enabling Central-West Orana Renewable Energy Zone network infrastructure project (the CWO Enabling 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 business days of receiving a compliant revenue proposal from Transgrid on 31 July 2025.

In line with the EII Act requirements, we will publish our revenue determination, including the amounts payable for the project, following notification from EnergyCo that financial close for the CWO Enabling Project has been achieved.

Background

The Central-West Orana Renewable Energy Zone (CWO REZ) was declared by the NSW Minister for Energy under section 19(1) of the EII Act in November 2021. In June 2024, the Consumer Trustee (ASL) authorised Transgrid to carry out the CWO Enabling Project.

The CWO Enabling Project will enable the CWO Main Project to connect to the NSW transmission network. It comprises of upgrades to the existing transmission network to alleviate network constraints so that renewable electricity generated in the CWO REZ can be transported to consumers throughout NSW. Our revenue determination for the CWO Main Project, under the contestable framework, was separately made on 13 December 2024.

Our role as the economic regulator under the NSW EII framework is to ensure that Transgrid only recovers the prudent, efficient, and reasonable capital costs for undertaking the authorised network project.

Our assessment of Transgrid’s CWO Enabling 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, we will be publish our final decision as soon as reasonably practicable once we receive notification from EnergyCo that financial close has been achieved for the CWO Enabling Project.