New South Wales allocates USD 284m to back renewables transition

Solar panels in New South Wales. Image by NSW Department of Planning and Environment (www.planning.nsw.gov.au/).

New South Wales’ 2021/22 budget will include AUD 380 million (USD 284m/EUR 239m) in funding over four years to advance the Australian state’s Electricity Infrastructure Roadmap that calls for the delivery of 12 GW of renewable energy and 2 GW of storage by 2030.

The funding represents the biggest investment ever by the state government in large-scale renewable energy, energy minister Matt Kean said last week as he announced the funding with treasurer Dominic Perrottet.

The package is intended to ensure transmission upgrades in the Central West-Orana renewable energy zone are construction-ready by the end of 2022 and to bankroll the set-up of the roadmap including the Consumer Trustee, Financial Trustee and Regulator.

“With four of our five coal fired power stations due to reach the end of their technical lives in the next fifteen years, we are on the clock to replace them before they close to keep the lights on and prices down,” Kean said.

Perrottet said the roadmap is expected to trigger AUD 32 billion of investment over the next 10 years.

The state government plans the development of five renewable energy zones which it views as modern-day power stations. Earlier this month it launched a registrations of interest (ROI) process in relation to an up to 8-GW renewable energy zone in the New England region.

The budget funding adds to about AUD 110 million of existing commitments, including AUD 40 million for the Central West-Orana renewable energy zone and AUD 79 million for the New England zone.

Separately, on Sunday, New South Wales announced a AUD-490-million Electric Vehicle Strategy as part of the 2021/22 budget.

The state wants more than 50% of new cars sold in New South Wales by 2030 to be electric vehicles, which would reduce carbon emissions and air pollution.

Alongside rebates and weaving stamp duty for battery and hydrogen fuel cell vehicles under certain prices, the funding includes AUD 171 million for new charging infrastructure across the state and AUD 33 million to help make the state government passenger fleet electric.

Rebates of AUD 3,000 will be offered to the first 25,000 private buyers of battery and hydrogen fuel cell vehicles under AUD 68,750 from September.

(AUD 1.0 = USD 0.748/EUR 0.630)

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