Upgrades to existing network proposed for Hunter-Central Coast Renewable Energy Zone network infrastructure project

The NSW Government has reached a major milestone in securing the state’s energy future with EnergyCo signing the Project Deed with network operator Ausgrid to deliver the Hunter-Central Coast Renewable Energy Zone (REZ) Network Infrastructure Project.

It means Ausgrid can now begin construction on the project to deliver an additional one gigawatt of transfer capacity, which is how much energy can be exported from the REZ at any given time.

It is the first of a kind in NSW, providing renewable energy by upgrading Ausgrid’s existing distribution poles and wires rather than building new ones. This approach significantly reduces the impacts on surrounding communities and the environment.

The Hunter-Central Coast REZ Network Infrastructure Project will see the region play a key role in keeping the lights on and preventing price-spikes as coal-fired power stations retire.

The REZ is expected to connect approximately 1.8GW of new renewable generation and storage.

The Project Deed signing follows a revenue determination by the Australian Energy Regulator, signalling the Regulator’s acceptance that Ausgrid will deliver the project in a prudent, reasonable and efficient manner, to ensure the lowest possible cost recovery impacts on energy consumers.

Construction is expected to start in early 2026. Ausgrid will deliver, operate and maintain the project and will continue to work with EnergyCo to build on the Hunter region’s diverse economic skill base and create local jobs.

EnergyCo and Ausgrid will continue to engage closely with the local community, industry, councils and other stakeholders as the project progresses to minimise impacts and realise benefits.

The Hunter-Central Coast REZ is expected to bring up to $3.9 billion in private investment. It is forecast to support an average of about 590 direct jobs per year during construction, and 220 ongoing operational jobs from 2030.

The REZ will also create additional demand for workers in local manufacturing, retail, transport and the supply of goods and services. 

EnergyCo Chief Executive, Hannah McCaughey said:

“We’re excited to see this significant project move ahead, ensuring the region remains a major player in future electricity generation. It will provide communities with tangible benefits and reliable energy for homes and businesses.”

Ausgrid CEO, Marc England said:

“We are proud to deliver this critical project, building reliability for the Hunter. We will continue to engage closely with the community and business owners to maximise benefits and minimise project impacts when construction gets underway next year.” 

About the Hunter-Central Coast REZ Network Infrastructure Project:

The Hunter-Central Coast REZ stretches from the Upper Hunter in the north to the Central Coast in the south and includes the Newcastle, Lake Macquarie and Port Stephens regions.

In December 2024, EnergyCo selected Ausgrid as the preferred network operator to design, build, finance, operate and maintain the Hunter-Central Coast REZ network infrastructure project. Ausgrid will upgrade its electricity network in the Hunter region (between Kurri Kurri and Muswellbrook) to provide an additional one gigawatt of network transfer capacity by 2028.  

The project work includes:  

• upgrading approximately 85km sub-transmission lines  
• constructing 18km of new underground fibre optic in the Upper Hunter  
• building two new energy hubs (substations)  
• augmenting several existing energy hubs (substations), and  
• augmenting underground fibre optic circuits in the Upper Hunter region.