Major Consortium Proposes "Inland Renewable Energy Region" for NSW
A consortium of six renewable energy developers has submitted a proposal for the "Inland Renewable Energy Region" in remote, inland New South Wales (NSW). The proposal was submitted to the Australian Energy Market Operator’s (AEMO) Draft 2026 Integrated System Plan.
Proposal Overview
The consortium advocates for additional transmission capacity across Far, North West, and Western NSW. This strategic move aims to unlock a significant inland renewable region characterized by strong resource fundamentals, minimal development constraints, and supportive local communities.
The consortium comprises:
- Tilt Renewables
- Squadron Energy
- Iberdrola
- Acciona Energía
- Ark Energy
- Voyager Renewables
Key Capacity and Timeline
The proposed outback zone is projected to support over 10 gigawatts (GW) of new renewable power at full scale.
- Stage One: 2-4 GW by 2035.
- By 2040: 6 GW.
- Long-term potential: Exceeds 10 GW, potentially supporting future interconnections with South Australia, Queensland, and Victoria.
Rationale and Benefits
The submission highlights the region's ability to offer a dependable and scalable source of renewable energy, crucial for NSW's future supply as coal-fired power plants retire. It argues that existing Renewable Energy Zones (REZs) face limitations in social license, land use, and hosting capacity. In contrast, offshore wind projects present high costs and extended lead times. The inland region, therefore, offers strong fundamentals and lower development barriers.
Previous Support
The proposal aligns with previous recommendations from NSW network company Transgrid. In its 2024 and 2025 Transition annual planning reports, Transgrid suggested utilizing "excellent solar and wind resources on under-utilised, low-density land" in remote NSW as an alternative to offshore wind for meeting energy demand. Transgrid had identified potential remote REZs around Broken Hill, Noona, and the north-west, proposing connection via new HVDC transmission lines.
Consortium Actions and Recommendations
In December, the consortium members signed a Memorandum of Understanding (MoU) to jointly assess the feasibility of constructing a major new transmission link to the Cobar region, approximately 300km north-west of Dubbo.
The submission urges AEMO to:
- Declare the new transmission line a priority project in the final 2026 ISP, due for publication in June.
- Include the Inland Renewable Energy Region transmission project in the Optimal Development Path (ODP).
- Ensure the regulatory and planning framework facilitates timely delivery, providing clear guidance on sequencing, cost-benefit assessment, and integration with existing and future ISP projects.
Technical assessments by the consortium members have identified potential connection points for various configurations, including Broken Hill, Mt Piper, Bannaby, and Wollar, offering credible integration pathways into the existing network.
Industry Context
While Transgrid is not formally part of this consortium, it has collaborated with some members on other projects, such as with Acciona's infrastructure arm on the HumeLink transmission project. Iberdrola is also involved in Australia's transmission market and is a contender for the New England REZ network operator in NSW.
The consortium emphasizes that the Inland Renewable Energy Region represents a timely, scalable, and nationally significant opportunity to help meet Australia’s reliability, affordability, and decarbonisation objectives.