Here at Choice Energy, we always have our ear to the ground, listening for the next energy scoop to save our clients money. The latest development in this space is a major milestone in the creation of the South West Renewable Energy Zone (REZ).
The NSW government has officially granted access rights to four large-scale wind, solar, and battery projects, adding around 3.56 gigawatts of clean energy capacity to the South West REZ.
This is great news for the continued adoption of clean energy in the region. But on the other hand, it also signifies the narrowing window of opportunity to feed energy back into the grid.
In this article, we’re taking a look at why this is such an important announcement, what it means for future solar investments, and how this could actually be considered bad news for would-be solar energy producers.
EnergyCO’s South West REZ Announcement
So, EnergyCo’s South West REZ access announcement is great news for four major renewable energy projects and their companies. These projects are:
- The Yanco Delta project by Origin Energy; a windfarm project that will deliver a maximum of 1,460 MW.
- The Dinawan Energy Hub by Spark Renewables; a hybrid wind, solar, and energy storage project delivering a maximum capacity of 1,007 MW.
- The Pottinger Energy Park by Someva Pty Ltd/AGL Energy Hubs Ltd, a wind and battery project delivering a maximum capacity of 831.2 MW
- The Bullawah Wind Farm by BayWa r.e., a wind farm delivering a maximum of 262.3 MW.
Together, these projects represent over 3.5 gigawatts of combined wind, solar, and community battery storage capacity. Enough to power over 1.6 million homes!
This secures the renewable energy future for those in the South West REZ, such as the towns of Hay, Balranald and Buronga. But this announcement also effectively cuts off future competition from being granted access rights to supply capacity back to the grid.
This means that grid access is no longer an open season in which governments welcome everyone to contribute energy supply to the grid. It now means that grid access is being allocated competitively.
By all accounts, the AEMO Services access rights tender process was a rigorous one. Not all applicants were successful. In fact, more than 19 GW worth of renewable capacity was proposed, but only 3.56 GW of access rights were awarded.
So, if your business is considering a commercial solar system — especially one that aims to export excess power to reinforce its profitability — the time to act is fast approaching.
Why This Matters for Businesses
To understand why this is so important, you need to understand a bit more about the South West REZ.
NSW Renewable Energy Zones are a relatively recent development, and the South West REZ is one of the first of its kind. Its rollout is being treated by many as a study of what the renewable energy landscape might look like in the near future.
One key insight is already becoming clear: there’s more than enough interest from renewable energy producers to sustain the South West REZ. But what’s lacking is the infrastructure to support all that demand. As more REZs reach capacity, the window to secure export rights is rapidly narrowing.
And this matters — because export access directly impacts your return on solar investment. If your business installs solar but can’t export excess power to the grid, you’ll miss out on feed-in tariffs, credits, or participation in virtual power plants (VPPs). For larger commercial setups, those lost earnings can really change the viability of a solar installation.
Even if you’re not planning to sell large amounts of power back to the grid, network congestion can still slow or block connection approvals altogether, leading to costly delays or project redesigns. This is especially true for systems larger than 100kW, which often face stricter requirements.
The key takeaway here is that if solar or battery storage is a part of your future plans, conditions won’t be favourable forever, and failing to act could cost big time when grid access rights tighten up in your area as well.
So, What Are Your Options?
Even though grid access is becoming more competitive, you still have options. In fact, the smartest strategies right now are about working within the limitations, not against them.
Here are the proactive ways businesses like yours can get ahead and stay there.
Behind-the-meter systems
Generate, store, and use your energy on-site without needing to export back to the grid. These setups can help you avoid export constraints altogether.
Battery-ready solar
We always advise businesses to install a solar system that is compatible with commercial solar batteries, even if they’re not ready to invest in battery storage yet.
Virtual Power Plants (VPPs) or Hybrid PPAs
Join an energy-sharing network where your system becomes part of a larger, aggregated asset. These programs often come with pre-secured export rights, making it easier to unlock value without going it alone.
Get Started With Choice Energy
Clearly, the South West REZ is only the beginning. As more Renewable Energy Zones are rolled out across Australia, competition to provide supply will remain fierce. This will likely lead to a reduction in incentives for solar installation, causing a hit for large solar installations, whether you plan to export your energy or not.
But for now, the opportunity to be a part of Australia’s low-carbon future is there, and forward-thinking businesses stand to gain plenty by installing solar soon.
Let the team at Choice Energy help you get your solar installed. Take the first step and book your free energy assessment today.
