BY OLI GOELDNER
Construction has begun on the first project to be connected to the Hunter-Central Coast Renewable Energy Zone (REZ).
A large solar farm and battery project is being built on a former coal mine site 2.5 kilometres east of Muswellbrook.
Delivered by renewable energy generator OX2 and co-developed with Idemitsu Australia, it reached financial close in May and is expected to support around 200 construction jobs.
Once operational, the 135 megawatt (MW) solar farm and 100 MW Battery Energy Storage System will general enough electricity to power more than 50,000 homes.
The project is expected to connect to the upgraded grid in late 2027 and be operational by 2028.
With the first stage of the Hunter-Central Coast REZ Network infrastructure complete, projects, including OX2, can immediately connect to the grid once construction is finalised.
Ausgrid was commissioned by EnergyCo to deliver the upgrade to its existing distribution network and unlock 1 gigawatt of network capacity in the region by 2028.
In total, the REZ will connect an additional 1.8 gigawatts of new renewable generation and storage projects.
Included will be the upgrade of around 85 kilometres of sub-transmission lines, installation of 18 kilometres of new underground fibre optic communications cable, two new energy hubs at Sandy Creek and Antiene in Muswellbrook and the upgrade of existing substations.
It's is expected to attract up to $3.9 billion in private investment and support an average of 590 direct jobs per year during construction, and 220 ongoing operational roles from 2030.
Executive Project Director at EnergyCo Phil Bratney said it's been a long-time coming.
"We signed a commitment deed with Ausgrid in December 2024 and then signed a construction contract in December last year," he said.
"So, it's great to see the first project looking to connect to this [REZ]."
OX2 Vice President Stephens said the project demonstrates how Australia's energy transformation can deliver lasting benefits for regional communities.
"By repurposing a former coal mine site into a renewables hub, we're investing in infrastructure that will provide reliable energy, create local jobs, strengthen regional supply chains and support the Hunter's future prosperity," he said.

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