CONSTRUCTION is officially underway on the Hunter-Central Coast Renewable Energy Zone (REZ), a project the state government says will generate enough energy to power more than all the homes in the Hunter.
REZs aim to group new wind and solar power generation and batteries into locations where it can be efficiently stored and transmitted across NSW.
The Hunter-Central Coast REZ stretches from the Upper Hunter in the north to the Central Coast in the south and includes the Newcastle, Lake Macquarie and Port Stephens regions.
In December 2024, EnergyCo selected Ausgrid as the preferred network operator to design, build, finance, operate and maintain the network infrastructure.
Ausgrid will upgrade its electricity network in the Hunter region (between Kurri Kurri and Muswellbrook) to provide an additional one gigawatt of network transfer capacity by 2028, enabling up to 1.8GW of generation and storage projects.
Energy Minister Penny Sharpe visited Kurri Kurri last week to meet workers and see the beginning of construction.
“Upgrading this critical infrastructure is another step forward in securing clean, affordable and reliable energy for households and businesses as ageing coal-fired power stations retire,” she said.
“This project will unlock hundreds of local jobs and boost the economy in the Hunter region.
“The renewable energy sector directories open another door for local businesses to participate in the growing pipeline of energy projects across the state.”
The project is expected to create 590 jobs during construction, with a further 220 local jobs once operational.
“It is a great day when you can announce hundreds of new jobs coming to our local area,” said Member for Cessnock Clayton Barr.
“I would strongly encourage locals to make every effort to be a part of this exciting time in upgrading our electricity system network.”
EnergyCo Chief Executive Hannah McCaughey said the start of construction is a “major milestone for energy security in NSW”.
“We are proud that 90 percent of the ongoing jobs are expected to be filled by locals,” she said.
“The Hunter region has a rich history when it comes to energy in NSW, and the REZ will ensure it remains a major player in future electricity generation.”
The network infrastructure project will connect an additional 1.8 GW of new renewable generation and storage projects.
It includes:
– upgrading approximately 85km sub-transmission lines
– installing 18km of new underground fibre optic communications cable
– building two new energy hubs in Muswellbrook LGA (Sandy Creek and Antiene), and
– upgrading existing substations, including the one at Kurri Kurri
The Hunter-Central Coast Network Infrastructure Project is the first REZ project to upgrade existing distribution poles and wires instead of building all new transmission lines.
Dr Helen Nugent AC, the Independent Chairman of the Ausgrid Board, said, “As Australia’s first Distribution REZ, Ausgrid is proud to lead the way in demonstrating how we can play a key role in the energy transition.
“I’m incredibly proud of the work Ausgrid has done over the past 12 months to plan this project – and importantly to carry out extensive engagement with landowners, residents and local businesses.
“We look forward to our solution providing ongoing benefits for the Hunter Region, for generations to come.”

