Andrew Forrest’s Windlab Project Faces Grid Access Issue
A significant wind and solar project in south-west NSW, proposed by Windlab under Andrew Forrest’s control, appears to be facing challenges as it could potentially be the first failure among the 19 winning projects selected by the federal government’s renewable energy policy. The Junction Rivers project, with a budget of $1.4 billion, aimed to integrate a 600-megawatt wind farm with a 200-megawatt, 800-megawatt-hour big battery, located approximately 15 kilometres south of Balranald. Despite being an unexpected winner in the federal government’s auction, the project has encountered obstacles in gaining access to the grid.
The project’s setback stems from its reported failure to secure access to the Renewable Energy Zone (REZ) in a separate auction conducted by the NSW state government. The auction, managed by AEMO Services, offered 3.98 gigawatts of capacity, with winners and losers notified in January. However, the official announcement, initially planned for February, is still pending.
Implications for the Renewable Energy Sector
If reports are accurate, the winning projects include the 1.5-gigawatt Yanco Delta wind project owned by Origin Energy and the potential 2-gigawatt Pottinger Energy Park, jointly owned by AGL Energy and Someva Renewables. The latter project aims to combine wind and solar capacities with a substantial battery component. With limited space for additional projects in the REZ, competition remains fierce, potentially involving projects like Origin’s 450-megawatt Yarrabee solar project and an Engie initiative.
The failure to secure grid access jeopardises the future of the Junction Rivers project, as connectivity was a prerequisite for its success in the Capacity Investment Scheme (CIS) tender. Developers are required to meet various milestones, including grid access and regulatory approvals, independently of the CIS process.
Challenges in Transitioning to Renewable Energy
The situation underscores the complexities of transitioning to renewables and achieving the government’s target of 82% renewable energy by 2030. Issues such as overlapping tenders between federal and state authorities, despite AEMO Services’ involvement, highlight coordination challenges. Moreover, insufficient capacity allocation in the south-west REZ, partly due to transmission line limitations, poses a significant hurdle.
The decision to construct a lower-capacity transmission line from South Australia to NSW restricts the region’s potential for wind, solar, and battery projects. The competition for grid access rights, exceeding 20 gigawatts, underscores the need for strategic infrastructure planning to accommodate renewable energy growth effectively.
While some projects may explore alternative grid connections, the Junction Rivers project’s options appear limited. The slow progress and cost escalations of transmission projects, including PEC and those linked to Snowy 2.0, impede renewable energy expansion efforts.
Debates persist regarding the focus on interstate transmission versus distribution networks, with calls for greater utilisation of existing network capacities. The industry’s shift towards centralised control, exemplified by REZ initiatives, has prompted divergent views, with some stakeholders advocating for projects outside designated zones.
Despite these challenges, the renewable energy sector continues to evolve, driven by innovation and policy support. Overcoming grid access barriers and enhancing transmission infrastructure will be crucial in realising Australia’s renewable energy ambitions.
