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

Today, we commenced consultation on Transgrid’s non-contestable revenue proposal for the Enabling Central-West Orana (CWO) REZ network infrastructure project (CWO Enabling Project) for the 2026–31 regulatory period. This is separate from the Main CWO REZ network project for which we made a contestable revenue determination in December 2024.

We are taking a staged approach in making a determination for this proposal in accordance with the Revenue determination guideline for NSW non-contestable projects. This includes a:

  • First round of consultation to help identify the most material and/or contentious issues for the Preliminary position paper (to be published in October 2025).
  • Second round consultation including a public forum to hear stakeholders’ feedback on the Preliminary position paper and Transgrid’s revenue proposal.

Under the NSW Electricity Infrastructure Investment Act 2020 (EII Act), we are required to make revenue determinations for network operators such as Transgrid who are authorised or directed to undertake the network infrastructure projects. 

As Transgrid’s revenue proposal was submitted under the non-contestable framework, we have 126 business days from receiving a compliant revenue proposal to make a revenue determination. Our role is to ensure that Transgrid only recovers the prudent, efficient, and reasonable capital costs for undertaking the network project. 

We expect to make our final decision in February 2026.

 

All submissions will be made publicly available to facilitate an informed and transparent consultative process, unless otherwise requested. For further information regarding the AER's use and disclosure of information provided to it, see the ACCC/AER Information Policy.

Background

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).

The CWO REZ network infrastructure project contains two components - the Main CWO REZ network project to be carried out by ACEREZ Partnership, and the CWO Enabling Project to be carried out by Transgrid. 

The Main CWO REZ network project comprises new network infrastructure within the CWO REZ to connect new generation and storage projects to the existing NSW transmission network. We made our contestable revenue determination for the Main CWO REZ network project in December 2024.

The CWO Enabling Project comprises upgrades to Transgrid’s existing NSW transmission network to transfer energy from the CWO REZ to major load centres in NSW. As this is a non-contestable project, we will make our determination in accordance with the EII Act, the EII Regulations and our Revenue determination guideline for NSW non-contestable projects.