Enabling Central-West Orana Renewable Energy Zone Network Infrastructure Project (non-contestable)

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 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.