AUSTRALIA’S first declared Renewable Energy Zone will formally commence construction within months after the NSW Government awarded ACEREZ the contract and reached financial close to deliver the Central-West Orana REZ transmission project.

But Dugald Saunders, Leader of the NSW Nationals and Shadow Minister for Regional NSW, Agriculture, and Trade and Natural Resources, on Friday questioned the ongoing impacts on the region.

He said a lack of consultation has residents “fed up with how poorly the process has been handled”.

“Now the financial close stage has been reached with ACEREZ, we need answers on what the ongoing impacts will be on the region, and what the financial implications will be for New South Wales in the future,” Mr Saunders said.

“ACEREZ has signed on to construct, own, control and operate the project for 35 years, including new high-capacity transmission lines, energy hubs and related infrastructure.

“But the Energy Minister needs to be up front about what the cost will be at the end of that 35-year period, when the NSW Government takes over the assets.

“The CWO REZ continues to cause a lot of angst for residents who have had these projects forced into their backyards, and they are fed up with how poorly this process has been handled, including a lack of proper consultation,” he said.

“With more projects being added, the REZ seems to be getting bigger and bigger and we haven’t been able to get a straight answer as to where it is up to.

“That’s why we need a moratorium and stocktake on renewables projects in the region to get a clear idea of the cumulative impact, because our state’s only active REZ is already completely overblown.

“I have always said when it comes to renewables, regional communities are doing the heavy lifting and therefore need to be fairly compensated.

“I have continually raised the idea of a proper shared benefit scheme because I believe the closer you are to large scale renewables projects the more benefits you should get, including cheaper power,” Mr Saunders said.

“But so far in all the Government’s announcements, it is not clear what those benefits will be and how they will be chosen for each community.

“It’s not good enough for regional residents and community groups to be left in the dark and we need the Government to step up and ensure meaningful discussions are happening now,” he said.

The NSW Government says the project will establish critical infrastructure that will connect solar and wind farms and energy storage to the New South Wales electricity grid.

EnergyCo has appointed ACEREZ – a consortium of ACCIONA, COBRA, and Endeavour Energy – to design, build and finance the Central-West Orana REZ transmission project and operate and maintain it for the next 35 years.

The area covers Dubbo, Eumungerie, Gilgandra, Geurie, Wellington, Mumbil, Mendooran, Dunedoo, Gulgong, Mudgee, Coolah and Cassilis across a 20,000 square kilometre area.

The project will deliver at least 4.5 gigawatts of new network capacity by 2028, to connect 7.7 gigawatts of wind and solar projects, which is enough to power more than 2 million homes each year.

It will generate a significant economic boost in the Central-West Orana region and NSW as a whole, supporting more than 5000 construction jobs at its peak and bringing $20 billion in private investment into the region by 2030.

The project is the first competitively sourced REZ transmission project in Australia.

Early works on the project started in February, and construction is scheduled to start mid-year.

Minister for Climate Change and Energy, Penny Sharpe said the project will inject billions of dollars in private investment into the Central-West Orana region by 2030.

“Getting this deal done brings us closer to delivering more affordable and reliable renewable energy to NSW households and businesses,” Ms Sharpe said.

“With three out of four of the state’s remaining coal-fired power stations set to close in less than 10 years, this Renewable Energy Zone will help us meet our future energy needs in order to keep the lights on and avoid price spikes.”

EnergyCo chief executive officer, Hannah McCaughey said the REZ is part of a once-in-a-generation extension of the NSW electricity grid.

“We look forward to continuing our relationship with ACEREZ as we move into the delivery phase for the state’s first Renewable Energy Zone, which will harness our abundant wind and solar resources to power NSW,” Ms McCaughey said.

“It’s a major step in securing our energy future and keeping the lights on as coal-fired power stations retire.”

ACEREZ chief executive, Trevor Armstrong, said the REZ was a significant milestone.

“ACEREZ is proud to play a role in powering homes and businesses in NSW for generations to come,” Mr Armstrong said.

“We will work alongside Central-West Orana communities to provide jobs and economic growth and lasting benefits across the region.”