AER publishes final decision for Ausgrid’s Hunter-Central Coast REZ non-contestable network infrastructure project

The Australian Energy Regulator (AER) has today published its revenue determination on the amounts payable to Ausgrid for the Hunter-Central Coast Renewable Energy Zone (HCC REZ) network infrastructure project (the HCC Project). 

The HCC Project, initiated under the New South Wales (NSW) Electricity Infrastructure Investment Act (EII Act), provides for upgrades to Ausgrid’s existing network infrastructure to enable an additional 1 GW of network transfer capacity to support renewable energy generation and storage within the HCC REZ region. 

We made a determination for the HCC Project on 12 November 2025. Consistent with the requirements of clause 53(4) of the EII Regulations, we have published the final decision as soon as reasonably practicable, following EnergyCo (as the Infrastructure Planner) notifying us on 17 December 2025 that financial close has been achieved.

Our final decision on Ausgrid’s HCC Project is to allow for $189.6 million in revenue to be recovered over the 2026–31 period via a schedule of quarterly payments to be paid to Ausgrid. This is a decrease of $14.0 million (–6.9%) from Ausgrid’s proposed revenue. The revenue determination also includes mechanisms to adjust revenues annually over the regulatory control period.

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.