Allens has advised the financiers to the ACEREZ partnership on the project and financing documentation with Energy Corporation of New South Wales (NSW EnergyCo) for the design, construction and operation of transmission infrastructure for Australia's first renewable energy zone, the Central-West Orana Renewable Energy Zone (REZ) in NSW.
The first-of-its-kind project, which reached financial close last week, will deliver at least 4.5 gigawatts of new network capacity by 2028, which could represent around 25-30% of NSW's total electricity needs and generate a significant economic boost in the Central-West Orana region and broader NSW.
In a major step forward for NSW's energy roadmap and Australia's energy transition, the ACEREZ partnership - comprised of ACCIONA, COBRA and Endeavour Energy and advised by Capella Capital - will now formally commence construction of Australia's first declared REZ.
'Achieving contractual and financial close for Australia's first renewable energy zone marks a significant milestone in Australia's transition to clean and sustainable energy sources,' said lead partner Nicholas Adkins.
'As the remaining coal-fired power stations are retired in coming years, the Central-West Orana REZ will play a critical role in connecting solar and wind farms, as well as energy storage facilities, to the NSW electricity grid and ensuring timely, affordable and reliable energy sources for NSW.
'This is the first competitively sourced REZ transmission project in Australia. It combines features of public-private partnership and regulated asset models, ensuring a tailored procurement process which safeguards the long-term interests of energy consumers. This landmark transaction will set a precedent for future renewable energy zones and other critical projects in Australia ,' said lead Partner Nicholas Adkins.
'Bringing this landmark project to life has required tremendous effort from everyone involved. We are proud to have advised the financing syndicate and we congratulate NSW EnergyCo, the ACEREZ partnership, Capella Capital as financial adviser to ACEREZ and the project financiers on reaching financial close for the project.'
