The NSW government has unveiled an ambitious renewable energy plan that will need over $10 billion for new poles and wires. 

The plan involves the establishment of a Renewable Energy Zone and transmission projects, and aims to generate 15.5 gigawatts of clean energy across the state. 

However, department data reveals that the plan will require an investment of over $10.6 billion in new infrastructure.

NSW Energy Minister Penny Sharpe says the private sector and renewable energy providers bidding for the project will bear the cost of constructing the necessary transmission infrastructure. 

Although the plan was initially proposed in 2020, delays have pushed back the expected delivery dates for the Central West Orana and New England zones. 

Previously set to be operational by 2025, the Central West Orana zone is now projected to come online by 2027-2028, while the New England zone is expected to be operational by 2029.

Ms Sharpe says the analysis sheds light on the intricate costing and scheduling aspects of the renewable energy and transmission plan put forth by the previous government.

The plan outlines the establishment of renewable energy hubs, comprising multiple wind and solar farms, and even offshore wind projects. The power generated from these hubs will be transported through a network of transmission infrastructure. 

Private bidders have been engaged in a competitive reverse auction process to secure the rights to build and operate the infrastructure. 

However, the government will spearhead the construction of the poles and wires required to connect the zones to the grid, as well as broader transmission projects such as HumeLink and the VNI Link, which will connect NSW to Victoria.

For the Central West Orana renewable energy zone, the government has selected a consortium led by Endeavour Energy as the preferred bidder for constructing the necessary infrastructure. 

The cost of transmission infrastructure and preliminary works to connect the zone to the broader network was initially estimated to be between $400 million and $800 million. 

However, the latest projections indicate that the actual cost will be approximately $3.2 billion.

To support the financing of preliminary works and transmission infrastructure in each zone, EnergyCo, the state's energy provider and administrator, will have access to $1.2 billion. 

This funding will be repaid by the private generator responsible for constructing the project.

The NSW government has already conducted a reverse auction for power generators in the Central West Orana Renewable Energy Zone, near Dubbo. The next zone to undergo the auction process will be New England.

Under the tender process, several projects have received support, including ACEN Australia's proposed 400MW Stubbo solar farm and the 720MW New England solar farm. Additionally, Goldwind Australia's 275MW Coppabella wind farm has also been successful.

With four major coal-fired power stations scheduled for closure in the next decade, the state of NSW aims to have access to approximately 50 gigawatts of energy by that time. 

This includes over 11GW of wind power, 6GW of large-scale solar power, 5GW of rooftop solar, and 6.5GW of long-duration, large and small-scale storage. 

Furthermore, the plan includes approximately 0.5GW of firming capacity to ensure a stable energy supply.