Siemens Energy has been selected to supply and install synchronous condensers for the Central-West Orana Renewable Energy Zone (REZ) in New South Wales, supporting one of Australia’s most significant renewable energy infrastructure programs.
The contract was awarded by ACEREZ, a consortium of ACCIONA, COBRA, and Endeavour Energy, marking a key milestone in enabling up to 4.5 gigawatts (GW) of renewable energy under Stage 1 of the REZ rollout. The project achieved financial and commercial close with NSW Government for a 35-year Public-Private Partnership Contract.
Siemens Energy - Contract Details
Under the agreement, Siemens Energy will supply, install, commission, and test seven synchronous condensers, each equipped with flywheels and auxiliary systems designed to strengthen the electricity grid. The contract also includes a five-year service agreement covering scheduled maintenance, condition monitoring, rapid-response support, and integrated cybersecurity solutions to protect this critical infrastructure.
It is understood that Siemens Energy’s role is limited to equipment supply, with balance-of-plant works remaining the responsibility of ACEREZ
What is a synchronous condenser?
A synchronous condenser (SynCon) is a rotating electrical machine that plays a vital role in grid stability — especially in systems with high levels of renewable energy. Though similar in appearance to a motor or generator, it does not produce power. Instead, it stabilises voltage and provides inertia, helping to absorb fluctuations caused by variable sources like wind and solar.
By delivering these grid support services, synchronous condensers enable the stable integration of renewable energy while reducing reliance on fossil-fuel-based generators. The video below details its installation and functionality of a SynCon in a project in Ireland by ESB.
The Syncons for Central-West Orana Project
Spanning more than 20,000 square kilometres across the Dubbo, Dunedoo, and Mudgee regions, the Central-West Orana REZ is a cornerstone of Australia’s energy transition. As coal-fired power stations are phased out, large-scale renewables must be supported by technologies that maintain voltage, frequency, and system inertia.
The deployment of synchronous condensers will help address these challenges, supporting a more resilient and secure grid as low-emissions generation is brought online.
“By deploying advanced technologies such as our synchronous condensers, we are improving grid stability and security while paving the way for the integration of up to 4.5 gigawatts of renewable energy,” said Samuel Morillon, Managing Director of Siemens Energy Australia.
“This is a big step towards creating a cleaner, more sustainable energy system for future generations. Our collaboration with ACEREZ reflects a unified effort to meet the nation’s renewable energy targets while delivering tangible benefits to local communities.”
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