Overview

Sector
Electricity
Segment
REZ
Transmission
Region
New South Wales
Status
Open
Commencement date
Regulatory period
-
AER reference
AER22005187

The AER is required to make revenue determinations for network operators who are authorised or directed to undertake network infrastructure projects. We undertake this role as a Regulator under the NSW Electricity Infrastructure Investment Act 2020 (EII Act).

Between 2022 and 2024, NSW Energy Corporation (EnergyCo) undertook a competitive assessment process to select a network operator for the main Central‑West Orana Renewable Energy Zone network project (CWO REZ network project). ACEREZ Partnership (ACEREZ) was the successful tenderer.

On 4 June 2024, AEMO Services Limited (the NSW Consumer Trustee) under s. 31(1)(b) of the EII Act authorised ACEREZ as the network operator to develop, construct, own, control and operate the main CWO REZ network project.

On 24 October 2024, ACEREZ submitted a revenue proposal to the AER seeking to recover the costs for the main CWO REZ network project. We have commenced assessing ACEREZ’s revenue proposal. As the revenue proposal was submitted under the contestable framework, we have 42 business days from the date the revenue proposal is submitted to make a revenue determination. 

If we find a competitive assessment process to be ‘genuine and appropriate’ then we are able to adopt the outcome of the process in our revenue determination. Key outcomes of a competitive assessment process are the revenues to be recovered by the network operator and the mechanisms by which those revenues can be adjusted. Our Revenue determination guideline for NSW contestable network projects sets out the factors and criteria we take into account when deciding whether a tender process was ‘genuine and appropriate’.

Under the EII Act, ACEREZ is required to be paid by the Scheme Financial Vehicle (SFV) in accordance with our determination. The SFV recovers these costs (and other NSW Roadmap costs) from NSW electricity distributors, who in turn recover these costs from NSW electricity customers via their retail bills.

 

Main CWO REZ network project

The Central-West Orana REZ is approximately 20,000 square kilometres centred by Dubbo and Dunedoo. The REZ was declared by the Minister in November 2021 under section 19(1) of the EII Act. The declaration was amended in December 2023. 

The REZ is designed to support 4.5 GW of network capacity with this to be increased to 6 GW by 2038. Operation of the network is expected to commence on a staggered basis between November 2028 and April 2030. 

The scope of the main CWO REZ network project consists of: 

A 500 kV transmission network from Wollar to Elong Elong via Merotherie, inclusive of the Barigan Creek Switching Station, as well as the Elong Elong and Merotherie Energy Hubs. The network between Merotherie and Elong Elong will be built at 500 kV but initially operated at 330 kV.

A 330 kV network of assets extending from the Energy Hubs to the locations of identified generation projects. 

Comprising synchronous condensers with a nominal nameplate rating of up to 1,750 MVA. 

 

EnergyCo, as the Infrastructure Planner for the main CWO REZ network project, completed a competitive assessment process to select a Network Operator. The Consumer Trustee, after considering EnergyCo’s recommendation in relation to the CWO REZ network project, authorised ACEREZ as the network operator on 4 June 2024. ACEREZ will develop, construct, own, control and operate the main CWO REZ network project.