South West REZ communities to help shape $60 million funding program as region prepares for growth
Communities across the South West Renewable Energy Zone, including several towns newly added to the funding area, are set to share in an initial $60 million community benefit program funded through NSW Government support and future renewable energy project access fees.
An initial $60 million in community funding will be made available across the South West Renewable Energy Zone (REZ), with the NSW Government expanding the eligible funding area and inviting local input into how the program is designed.
The funding will be delivered through the Community and Employment Benefit Program, which is intended to support local infrastructure, services and employment opportunities in communities hosting renewable energy development and associated infrastructure.
EnergyCo will consult with councils and local communities as it develops the program, with funding directed toward priorities identified by the region.
Expanded footprint for community benefits
Alongside the funding announcement, the NSW Government has widened the area eligible to receive support. The change means towns including Coleambally, Jerilderie and Deniliquin can access funding despite being located outside the formal REZ boundary.
The decision reflects the role these communities are expected to play in supporting renewable energy projects and transmission infrastructure associated with the zone.
Future funding contributions will come from access fees paid by renewable energy developers that have secured agreements to connect to new transmission infrastructure within the REZ. Current access right holders include projects being developed by BayWa r.e., Origin Energy, Someva, AGL and Spark Renewables.
Minister for Energy Penny Sharpe said investment would begin flowing into communities before energy projects became operational.
“The Renewable Energy Zone will deliver meaningful and lasting benefits for regional communities in the South West, as investment starts to flow into communities well before projects come online.”
Access rights begin generating local returns
The South West REZ is expected to add 3.56 gigawatts of generation capacity to the NSW electricity grid over the next decade through a combination of wind, solar and battery storage projects.
Four projects have been granted access rights following a competitive tender process run by AusEnergy Services Limited in its role as NSW Consumer Trustee. The successful projects were selected from bids representing more than 15 gigawatts of proposed generation and storage capacity.
The projects awarded access rights are Bullawah Wind Farm near Hay, Dinawan Energy Hub between Coleambally and Jerilderie, Pottinger Energy Park south of Hay and Yanco Delta Wind Farm near Jerilderie.
Together, they will connect to an access rights network supported by Project EnergyConnect and the Victoria NSW Interconnector West transmission projects.
Building on an established model
The Community and Employment Benefit Program follows a model already used in the Central-West Orana REZ, where funding has supported initiatives including key worker accommodation, water security projects and early childhood education services.
The program has also funded employment initiatives aimed at young people, workers returning to the workforce and people seeking careers in the renewable energy sector.
According to the NSW Government, these investments are intended to help host communities participate in the economic activity generated by renewable energy development.
Jobs, investment and regional development
The South West REZ stretches from the Dinawan Substation in the east to the Buronga Substation in the west, extending from west of Jerilderie to the Victorian border near Mildura.
The zone is expected to attract more than $17.8 billion in private investment and support an average of about 1,690 direct local jobs each year during construction. Hundreds of operational roles are also forecast from 2031, alongside increased demand for workers in manufacturing, retail, transport and local supply chains.
EnergyCo Chief Executive Officer Hannah McCaughey said communities hosting new infrastructure were helping support the state's electricity system.
“EnergyCo is working to ensure the best outcomes for communities hosting new infrastructure, and South West communities are playing a critical role in keeping the lights on in NSW.”
