What are generation and storage projects?
Generation projects
Generation projects are projects that produce electricity. In the context of a renewable energy zone (REZ) and the work we do at EnergyCo, these projects include:
- solar power plants (sometimes called solar farms)
- wind generation plants (sometimes called wind farms)
- other types of renewable power generation like biomass
- hybrid facilities, which may combine solar, wind, energy storage or more.
Peak generation capacity for these types of projects in a REZ is generally measured in megawatts or gigawatts.
For smaller household and commercial solar systems, you'll usually see it measured in kilowatts.
Storage projects
Energy storage projects store electricity from the grid for later use. They include:
- battery energy storage systems, which charge up with electricity and discharge it into the grid when needed
- pumped hydro plants, which involve pumping water into a reservoir and then releasing it to create electricity.
Energy storage capacity is measured in 2 ways.
- Peak output capacity is measured in megawatts or gigawatts. This is similar to a generator's peak generation capacity.
- Storage capacity is the amount of energy a storage facility can hold, usually measured in megawatt-hours or gigawatt-hours.
Smaller household and commercial battery storage systems are usually measured in kilowatts and kilowatt-hours.
Learn about generation and storage projects in NSW's REZs
Access schemes are a key part of the NSW Government’s plan to unlock clean, reliable and affordable energy for everyone.
Ten projects have been awarded rights to connect to the new grid the Central-West Orana REZ.
Four projects have been awarded rights to connect to the new grid in the South West REZ.
Learn about projects in the planning pipeline for the New England REZ.
Planning considerations and progams for project developers
Projects need approval to connect to the grid
We’re leading the delivery of 5 renewable energy zones. These are geographic areas that group renewable energy generation such as wind and solar, storage like batteries and pumped hydro as well as high-voltage poles and wires, to deliver energy to the homes, businesses and industries that need it.
Generation and storage projects in NSW need approval under NSW planning laws the National Energy Rules to connect to the grid
- The NSW Government approves energy infrastructure under Part 5 of the Environmental Planning and Assessment Act 1979. They will typically be a regionally significant or state-significant development.
- We approve access for generation and storage projects to dispatch electricity through the network under access schemes for renewable energy zones.
Other programs for generators
Developers can also apply for Long-Term Energy Service Agreement (LTESAs) and the Capacity Investment Scheme.
LTESAs give projects the option to sell their electricity for an agreed minimum price, which helps them secure construction finance. AEMO Services, as the consumer trustee, grants LTESAs through competitive tenders. Their role is to help NSW ensure that new investment in the electricity system is orderly and efficient. A project with an LTESA may be located inside or outside a REZ.
The Capacity Investment Scheme is an Australian Government program that provides revenue certainty to developers of renewable energy generation and storage projects. It uses government-backed contracts that guarantee a minimum revenue floor while allowing developers to capture upside benefits when market prices are high. This helps unlock investment in critical clean energy infrastructure by reducing risk and creating a stable investment environment
Recent news
Released by: Minister for Energy and Climate Change
Released by: Minister for Energy and Climate Change
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