Latest news with #ACENAustralia
The Australian
6 days ago
- Business
- The Australian
Revealed: NSW renewable energy zone costs surge beyond initial estimate
NSW's Central-West Orana renewable energy zone will cost more than $5.5bn compared with the original $650m estimate when it was planned as a smaller development, adding to the bulging national bill for delivering the shift to green electricity. The Australian Energy Regulator said the $5.52bn budget had been calculated by the NSW government's EnergyCo based on determined development and construction capital costs, which will ultimately be recovered from NSW electricity customers. A raft of other significant costs including connection and system strength infrastructure will be funded through access fees paid by generators and storage projects connecting to the green zone. EnergyCo says the REZ takes in cities and towns including Dubbo, Dunedoo and Mudgee and will deliver 4.5 gigawatts of network capacity, to support up to 7.7GW of new generation from solar, wind and energy storage projects. The original development was expected to unlock 3GW of capacity. The project is expected to drive up to $20bn in private investment in solar, wind, and energy storage projects, supporting about 5000 jobs during peak construction. Ten electricity facilities spanning solar, wind and batteries are slated to be built across the zone including ACEN Australia's giant Valley of the Winds which is still waiting sign-off from Environment Minister Murray Watt after a further extension was granted on Tuesday. The Central-West Orana REZ will be the first of the planned five in the state with NSW intending to establish 12GW of renewable energy projects and 2GW of storage, including large-scale batteries. Each will need transmission lines to connect them to the main grid, but the Australian Energy Market Operator has said bolstering the amount of renewable energy will help lower wholesale electricity prices. Still, delivering the switch from coal to renewables and building enough new transmission infrastructure to deliver power to users has led to a string of cost blowouts. Energy experts, industry and farmers sounded the alarm on the VNI-West interconnector after AEMO indicated the proponents of the project believe it is likely to cost $7.6bn, with a range of 30 per cent lower or 50 per cent higher, meaning it could cost as much as $11.4bn. The Albanese government's target of 82 per cent renewables by 2030 'is looking harder to achieve' due to electricity transmission bottlenecks and community acceptance issues, Macquarie said on Tuesday. Obstacles including delays in major transmission projects such as VNI West, Humelink and EnergyConnect have complicated hitting the goal along with supply chain delays and worker shortages. The Albanese government announced last week it would expand its capacity investment scheme by a further 8GW to 40GW amid warnings not enough renewables will be built before big coal plants exit the power grid. In response Ross Garnaut, the godfather of federal Labor's climate policy, said that energy minister Chris Bowen will miss his goal of 82 per cent renewables by the end of the decade by a 'big margin', warning a Commonwealth underwriting scheme had stymied investment needed to hit green targets. The cost of overhead transmission line projects has ballooned by up to 55 per cent, with substations rising as much as 35 per cent compared with equivalent estimates provided for AEMO's 2024 electricity plan. Australia must develop about 10,000km of high voltage transmission lines by 2050 to deliver a smooth transition from coal to renewables, with half of the project pipeline to be delivered in the next decade. However, pockets of rural opposition and project pressures spanning supply chain constraints, competition, contracting issues and social licence considerations have slowed momentum and added to costs along with delays in delivering a new wave of green energy to households. AEMO has detailed a 25 per cent to 55 per cent increase after accounting for inflation for overhead transmission line projects compared to estimates for its 2024 integrated system plan and a 10 per cent to 35 per cent leap for transmission substation works, saying the figures are in line with increases announced for recent projects. Read related topics: Climate Change Perry Williams Chief Business Correspondent Perry Williams is The Australian's Chief Business Correspondent. He was previously Business Editor and a senior reporter covering energy and has also worked at Bloomberg and the Australian Financial Review as resources editor and deputy companies editor.
Yahoo
15-04-2025
- Business
- Yahoo
ACEN Australia secures $473.5m for renewables portfolio expansion
ACEN Australia has secured $473.5m (A$750m) in portfolio debt financing to bolster its clean energy initiatives in Australia. The financing supports the company's ongoing and future renewable projects, highlighting ACEN Australia's commitment as a long-term investor in the nation's clean economy. The funding will support the nearly finished 400MW Stubbo Solar project in New South Wales and follows the first power output from the 400MW Stage 1 of the New England solar project in 2023. The deal was supported by a group of 11 lenders from Australia and overseas, broadening ACEN Australia's network of finance partners and highlighting strong market trust in the company's growth plans and proven performance. ACEN Australia managing director David Pollington stated: 'Our ability to attract top-tier financial partners re-inforces our position as a trusted, long-term developer, owner and operator of assets, and reflects growing investor appetite for high-quality, renewable infrastructure in Australia.' The financing establishes a funding base for ACEN Australia's diverse portfolio, which includes more than 1GW of renewable capacity in operation and under construction, with an additional 13GW in development across the national electricity market. ACEN Australia chief financial and investments officer Phillip Mak stated: 'This transaction strengthens our funding platform, accelerates our delivery pipeline and positions us as a capable partner backed by a stable and diverse capital base.' The transaction involved a range of financial institutions: ANZ Banking Group, the Commonwealth Bank of Australia, CTBC Bank Co (Singapore branch), CTBC Bank (Philippines) and Cathay United Bank. Other participants included Deutsche Bank (Sydney branch), DBS Bank (Australia branch) and Westpac Banking. Macquarie Capital and Morgan Stanley acted as joint financial advisors for the transaction, with Allens serving as legal adviser for ACEN Australia and Herbert Smith Freehills advising the lenders. ACEN is on track to achieve 100% renewable energy generation by 2025 and reach net-zero greenhouse gas emissions by 2050. "ACEN Australia secures $473.5m for renewables portfolio expansion" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
