EnergyCo NSW has received strong market interest in its procurement of a private-sector partner to design, build, finance, operate, and maintain the New England Renewable Energy Zone (REZ) transmission network under a Public-Private Partnership (PPP) model. Six consortia submitted expressions of interest (EOIs) for the role of Network Operator, which will deliver up to 6 GW of renewable energy capacity, making the New England REZ the largest in NSW.
EnergyCo CEO Hannah McCaughey noted: “This strong level of interest is a positive signal for the PPP procurement and brings us closer to delivering a reliable energy system that provides long-term benefits for NSW communities.
New England Renewable Energy Zone - Details
The New England Renewable Energy Zone (REZ) is the largest of the state’s planned REZs and is a cornerstone of NSW’s Electricity Infrastructure Roadmap. Located in the New England region of northern NSW, the project will deliver up to 6 GW of renewable generation and storage capacity, helping to replace retiring coal-fired generation and supporting the state’s energy security and decarbonisation targets.
The REZ will require the development of a new transmission network and energy hubs to connect large-scale wind, solar, and storage projects to the existing grid. Under the PPP structure, the appointed Network Operator will be responsible for:
Designing, building, financing, operating, and maintaining the REZ transmission network;
Delivering 2.4 GW of network transfer capacity by 2032, followed by an additional 3.6 GW by 2034;
Establishing centralised energy hubs and coordinating connections for generation and storage proponents;
Managing long-term operational performance and handback of assets to EnergyCo at the end of the concession term.
More details on the video below (courtesy of Energyco.nsw.gov.au).
Market Interest and Procurement Stages (EOI and RFP)
EOIs closed in June 2025 following an interactive market engagement phase. Six consortia submitted bids:
Aura Networks (Plenary, Alupar, Webuild, FCC)
Future Energy Networks (AusNet, CPB, GS, Hyundai, others)
NewLeaf Energy (Iberdrola-led grouping)
Powergrid Corporation of India
Rezult Networks (Acciona & COBRA)
Verta Energy (EDF Australia-led)
EnergyCo will now shortlist two to three proponents to move forward to the Request for Proposal (RFP) stage in late 2025. The preferred Network Operator is expected to be appointed in 2027, with construction commencing shortly thereafter. The procurement starts months after EnergyCo has reached financial close for its first Renewable Energy Zone – Central West Orana.
Public-Private Partnership as the delivery model
The New England REZ network will be delivered through an enhanced regulated concession – a Public-Private Partnership (PPP) that transfers significant design, construction, financing, and operational risks to the private sector. In return, the appointed Network Operator will receive regulated returns linked to clear performance benchmarks, ensuring long-term asset quality and delivery certainty.
Under this model, the Network Operator must demonstrate strong community engagement and partnerships with First Nations groups, landowners, and local councils. Proponents will also be required to commit to robust local supply chain participation and regional workforce development, creating tangible economic and social benefits for the New England region.
The project is forecast to generate around 6,000 construction jobs and 2,000 ongoing operational roles. Employment, skills training, and local procurement outcomes will be key selection criteria throughout the procurement process, ensuring the PPP delivers lasting regional benefits in addition to energy security.
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