Renewable energy zone Orana blows out costs to $5.5b from $650m, adding to list of Labor's net zero failures across regional Australia
Located in the NSW Central-West region and spanning 20,000 square kilometres, the Australian Energy Regulator said Orana costs has blown out to $5.52 billion from the original $650 million figure.
The AER said on Tuesday said the blow out in cost, calculated by Energy Co, was based on 'development and construction capital costs', which will be charged to the consumer further down the line.
The Central-West Orana Renewable Energy Zone (CWO REZ) covers more than 20,000 square kilometres around Dubbo, Dunedoo, and Mudgee and aims to generate over 6 gigawatts of renewable energy through wind, solar, and battery projects. Picture: Supplied
The government operated EnergyCo said 4.5 gigawatts of electricity will be delivered by the Orana REZ transmission project - which will encompass areas such as Dubbo, Mudgee and Dunedoo - to support up to 7.7GW of energy from solar, wind and storage plants.
EnergyCo said that blowout was due to 'significant challenges' in the infrastructure and electricity sectors.
Institute of Public Affairs research fellow Mia Schlicht told SkyNews.com.au the latest price-tag on Orana revealed that the notion renewable energy was cheap is 'farcical in reality'.
'The federal and New South Wales governments need to halt Orana now and stop destroying our affordable and reliable energy generators,' Schlicht said.
'Projects like Orana destroy regional communities, the very ones that feed and power this nation.'
Environment Minister Murray Watt is yet to sign off on 10 electricity facilities involving solar, wind and batteries across the zone - including ACEN Australia's 'Valley of the Winds'.
The Orana REZ is one of five planned for NSW slated to generate 12GW of renewable energy projects and 2GW of storage capacity, all of which will need transmission lines to connect to the main grid, which the Australian Energy Market Operator said would help lower energy costs.
The NSW government said Orana will generate $20 billion of private investment and about 5,000 jobs at peak construction, from civil and land works to catering, graphic design and fencing.
But Ms Schlicht said Orana was just one of a growing number of net zero impact zone 'disasters' which were springing up across regional Australia.
The Albanese government's Orana renewable energy zone has been branded as yet another net zero 'disaster' taking place across regional Australia. Picture: Supplied
'The proposed projects in these zones are being overwhelmingly rejected by local communities because it will destroy prime farmland, and it pits neighbour against neighbour – all for very little in the way of actual energy produced, while fuelling an explosion in household energy bills,' she said.
'All of this damage is inflicted in the name of net zero, with the true costs hidden from the public and never honestly accounted for.'
On Monday, Centre for Independent Studies energy analyst Zoe Hilton claimed the Albanese government's pursuit of net zero was causing power prices to "spike continuously".
Ms Hilton claimed that rather than focusing on how net zero could or should be achieved, the government needed to simply ensure Australians had access to the cheapest and most reliable source of energy available.
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