The CEFC has unveiled its largest financial commitment to date.

The Clean Energy Finance Corporation (CEFC) says its $490 million investment is aimed at transforming New South Wales' energy infrastructure. 

The funding is part of the Rewiring the Nation Fund (RTN) to modernise NSW's energy grid. 

The funding will support the Central-West Orana Renewable Energy Zone (CWO-REZ), a key project in the state's renewable energy strategy. 

EnergyCo, the state-owned energy coordinator, projects that this financing could yield up to $240 million in savings for NSW electricity consumers over a 20-year period, thanks to reduced project costs.

The Australian Energy Market Operator (AEMO) has highlighted the critical need for timely investments in energy infrastructure, given the increasing reliability risks posed by the decommissioning of coal plants. 

The CEFC's financing to EnergyCo is structured to significantly lower consumer costs and expedite the delivery of the CWO-REZ. 

The new financial approach involves concessional terms that provide a government cost of funds for capital expenditures on land acquisition and biodiversity offsets. 

This arrangement should not only streamline financing for the Network Service Provider but also promote conservation efforts in regional NSW through biodiversity offset credits.

“The Central-West Orana REZ, centred around Dubbo, is a truly transformative project for Australia’s low emissions future and for the NSW economy,” said CEFC CEO Ian Learmonth. “It will deliver a bigger, stronger, cleaner and more reliable energy grid fit for the 21st century. With an additional 4.5 GW in network capacity, it will also unlock new low-cost solar and wind generation, backed up by battery storage.

“This $490 million investment marks an important milestone for the CEFC as well as the new RTN Fund. 

“The considerable scale of this commitment draws on our experience in leading investment in our clean energy future. As the second commitment through the RTN Fund, it also signals the strength of our focus on delivering much-needed capital in a timely manner to this large and complex investment task.”

With coal generation set to decline sharply - 46 per cent by 2030 and completely by 2038 - there is both an urgent need and a significant opportunity to enhance Australia’s renewable energy capabilities. 

Learmonth emphasised the importance of investing in the energy grid to secure a net zero future, highlighting the Central-West Orana region's abundant solar and wind resources.

The CWO-REZ is the first Renewable Energy Zone (REZ) declared in Australia and a priority project in AEMO's Integrated System Plan for the National Energy Market. 

EnergyCo has designated ACEREZ - a consortium of ACCIONA, Cobra, and Endeavour Energy - as the preferred network operator for the CWO-REZ. The CEFC is also collaborating with ACEREZ on potential RTN Fund investments in transmission infrastructure.

The CWO-REZ is expected to significantly bolster NSW's renewable energy capacity, initially adding at least 4.5 GW of new network capacity by the mid-2020s.