Construction begins on landmark Hunter-Central Coast REZ solar farm and battery project
Thousands of Hunter homes will soon be powered by new renewable energy generated in the region, with construction starting on the first major solar and battery project to connect to the Hunter-Central Coast Renewable Energy Zone.
Once operational, the 135 megawatt (MW) solar farm and 100 MW Battery Energy Storage System (BESS) will generate enough renewable energy to power around 52,000 homes while helping strengthen energy reliability in the region.
Construction commenced today at the former coal mine site 2.5 km east of Muswellbrook, marking the next chapter in the Hunter's long history as an energy-producing region.
Delivered by renewable energy generator OX2 and co-developed with Idemitsu Australia, the project reached financial close in May 2026 and is expected to support around 200 construction jobs.
The benefits extend well beyond the construction phase. Through an agreement with Muswellbrook Shire Council, OX2 will contribute $115,000 each year to a Community Benefit Sharing Program, helping deliver lasting benefits for local communities.
The project is expected to connect to the upgraded grid in late 2027 and be operational by 2028.
With the first stage of the Hunter-Central Coast REZ network infrastructure complete, renewable energy generators like OX2 can immediately connect to the grid once construction is completed, delivering more affordable, reliable power for customers across the Hunter.
EnergyCo has commissioned Ausgrid to deliver the upgrade to its distribution network and unlock 1 gigawatt of network capacity in the region by 2028. By building on existing infrastructure, the project will minimise impacts on land, local communities, the environment and consumer bills.
The Hunter-Central Coast REZ is expected to attract up to $3.9 billion in private investment and support an average of about 590 direct jobs per year during construction, and 220 ongoing operational jobs from 2030.
Quote attributable to EnergyCo Chief Executive Hannah McCaughey:
“It's pleasing to see that the additional network capacity we are building in the Hunter-Central Coast REZ is already unlocking new renewable energy and storage projects, delivering economic benefits to the Hunter region.”
Quote attributable to Vice President OX2 Australia, Stephen Symons
“Today's sod turning marks the beginning of construction on a project that demonstrates how Australia's energy transformation can deliver lasting benefits for regional communities.
“By repurposing a former coal mine site into a renewables hub, we're investing in infrastructure that will provide reliable energy, create local jobs, strengthen regional supply chains and support the Hunter's future prosperity.”
About the Hunter-Central Coast Renewable Energy Zone (REZ):
The Hunter-Central Coast Network Infrastructure Project is the first REZ project to upgrade existing distribution poles and wires instead of building all new transmission lines.
This REZ is expected to create 590 jobs during construction, with a further 220 secure local jobs once operational.
The network infrastructure project will connect an additional 1.8 GW of new renewable generation and storage projects.
It includes:
- upgrading approximately 85km sub-transmission lines
- installing 18km of new underground fibre optic communications cable
- building two new energy hubs in Muswellbrook LGA (Sandy Creek and Antiene)
- upgrading existing substations.