1.6 Energy and climate change

Reliable, renewable and affordable energy is key to our economic future with increased productivity, higher standards of living and lower emissions.

This Budget continues the Government’s investment in the Electricity Infrastructure Roadmap, transforming our electricity system to provide clean, reliable and affordable energy.

Renewable Energy Zones

This Budget includes continued investment of $2.1 billion over the next four years in the Transmission Acceleration Facility, primarily to support the five Renewable Energy Zones at Central-West Orana, New England, Hunter-Central Coast, Illawarra and South West. This builds on the $1.1 billion invested to date on these critical projects.

Central-West Orana

This investment completes the financing arrangements of the Central-West Orana Renewable Energy Zone transmission project, unlocking $20.0 billion in private investment into the Central-West Orana region by 2030, and supporting more than 5,000 construction jobs at its peak. Ten new projects, which will deliver over seven gigawatts of renewable generation and storage, have been awarded access rights. They will provide enough power for two million homes each year.

To support the construction of the Central- West Orana Renewable Energy Zone, the Budget invests an additional $115.5 million to build a logistics precinct at the Port of Newcastle that will facilitate storage and transportation of critical components. This project is expected to deliver around 90 construction jobs and 20 full-time positions once operational.

It is important that the benefits of Renewable Energy Zones are realised by local communities. The NSW Government is continuing the Community and Employment Benefit program and has allocated $128.0 million to communities which will host the Central-West Orana Renewable Energy Zone, with future funding for the other Renewable Energy Zones host communities.

Cheaper energy

The Budget also includes an additional $579.0 million from the Australian Government to extend the national Energy Bill Relief payment, providing all households and eligible small businesses with energy bill rebates up to $150 between 1 July and the end of 2025.