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1 November 2026

Renewable energy zone access rights in NSW: what they mean for your project

What a NSW renewable energy zone access right gives a generator, what access fees cost, how rights are allocated, where each REZ is up to, and how Victoria's new access regime compares.

By Leigh Heaney, Watson Advisory

In parts of NSW, a wind, solar or battery project can no longer simply apply to connect to the grid. It first needs an access right under a renewable energy zone (REZ) access scheme. This guide explains what an access right gives you, what it costs, how rights are allocated, and where each NSW REZ is up to, with a short note on Victoria’s new regime.

Who this guide is for

  • Developers with projects in, or near, a NSW renewable energy zone.
  • Investors and lenders doing due diligence on a REZ project.
  • Councils, landholders and community organisations who want to understand where access fee funding comes from.

What an access scheme is

The National Electricity Market normally works on “open access”: any generator that meets the technical rules can connect, even if that congests the network and reduces output for generators already there. In NSW, the Electricity Infrastructure Investment Act 2020 lets the Minister for Energy declare an access scheme for a REZ to manage this.

An access scheme caps how much generation and storage can connect to specified REZ network infrastructure, and decides which projects get in. EnergyCo, as the NSW Infrastructure Planner, designs and manages the schemes. An access scheme can use two tools:

  • An access rights regime, where projects must hold an access right to connect to the “access rights network”.
  • An access control mechanism, where projects need EnergyCo’s consent to connect to the “access control network”.

What an access right gives you

Under the Central-West Orana REZ Access Scheme declaration, an access right authorises the holder to:

  • apply to connect the approved project to a specified part of the access rights network; and
  • send out generation into that network up to the project’s maximum capacity for each capacity period, in line with its access right agreement, connection agreement and the National Electricity Rules.

The real value is protection from overbuilding. Each scheme sets a target transmission curtailment level and an aggregate maximum capacity cap, and EnergyCo can only grant new rights or capacity increases if they would not breach those limits. In Central-West Orana, the target is 4.37%: on average over a typical year, no more than about 4.37% of the REZ’s energy should be curtailed because of limits in the REZ transmission network.

Be clear about what an access right does not do:

  • It does not override AEMO’s central dispatch. You can still be constrained by the market and the wider network.
  • It is not a connection agreement. You still go through the connection process and must meet REZ access standards.
  • It is not revenue support. Underwriting comes separately, for example through a NSW long-term energy service agreement (LTESA).
  • It is not permanent. Rights expire at the end of the scheme’s term. The Central-West Orana scheme’s term has been extended by 13 years beyond its initial 20 years.

What it costs: access fees

Access right holders pay access fees to the Scheme Financial Vehicle. The fees are set by the NSW Consumer Trustee, AusEnergy Services Limited (ASL), under section 26 of the Act. Part of each fee funds EnergyCo’s Community and Employment Benefit Program in the region. EnergyCo says fees start once a project begins commissioning.

For the Central-West Orana initial allocation, ASL set a base fee of $4,000 per MW a year ($1,000 per MW a quarter), made up of:

  • a community fee of $425 per MW a quarter;
  • an employment fee of $150 per MW a quarter;
  • an administration fee of $125 per MW a quarter; and
  • a network infrastructure contribution fee of $300 per MW a quarter.

On top of the base fee, projects pay a centralised system strength fee (set at $3,090.84 per MW a quarter, to recover the cost of synchronous condensers) and a project-specific hub-to-project fee for the dedicated network connecting them to the REZ hub, which ranged from $0.40 million to $1.52 million a quarter. These figures exclude indexation, and some components can change on defined events. South West REZ fee information is published separately on ASL’s Tender Round 5 page.

Where each NSW REZ is up to

  • Central-West Orana: the first access scheme in the NEM, declared in December 2022 and amended in April 2024. Ten projects hold access rights totalling 7.15 GW, and EnergyCo declared the initial allocation complete in May 2025. The network is being built to operate at 4.5 GW of transfer capacity, with up to 7.7 GW of projects able to connect because wind, solar and batteries do not all export at once.
  • South West: declared on 12 April 2024, with a 3.86% curtailment target and an initial cap of 3.98 GW. Four projects hold rights totalling 3.56 GW, allocated through a competitive tender run by ASL. In a draft headroom assessment now on exhibition, EnergyCo found no additional headroom for more rights at this time. Feedback closes at midnight on 9 November 2026. (We can help you prepare feedback on the draft headroom assessment: admin@watsonadvisory.com.au)
  • New England: the Minister declared the New England REZ Access Scheme on 23 October 2026, after EnergyCo consulted on a draft from 6 July to 6 August 2026. It has a 4.92% target transmission curtailment level, applies to network infrastructure of 132 kV and above in the REZ, uses both an access rights regime and an access control mechanism, and includes an early access pathway for eligible projects connecting to the existing 330 kV network. EnergyCo says ASL will soon consult on access fees and that it will soon publish guidelines on the application process.
  • Hunter-Central Coast: EnergyCo consulted on a generation and storage paper from 7 July to 25 August 2026, the first of two phases. It is considering applying a scheme to parts of the existing network as well as new infrastructure, and expects to consult on a proposed design later in the year.

The Minister published updated Guidelines for Access Scheme Declarations in May 2026, clarifying EnergyCo’s role in developing schemes. EnergyCo publishes an Access Rights Register listing all rights granted.

When it applies to your project

Once a scheme is declared, the Electricity Infrastructure Investment Regulation 2021 modifies the National Electricity Rules connection process for the access rights network:

  • connection enquiries can no longer be made through the usual Rules process;
  • you cannot apply to connect a generating system unless you hold an access right; and
  • a network service provider cannot make a connection offer unless you hold an access right, including for projects that applied before the scheme was declared.

This is why it pays to know early whether your site will sit on an access rights network. If you plan to bid for an LTESA, ASL’s Tender Round 8 guidelines required projects on allocated REZ networks to hold the relevant access right, and made awards conditional on securing access where a scheme is declared later.

Step-by-step: securing an access right

  1. Map your project against the REZ boundary and network. EnergyCo publishes REZ boundaries (including as GIS files) and maps of projects with access rights. Work out which network your project would connect to.
  2. Follow scheme consultations. Submissions on draft declarations shape eligibility, curtailment targets, capacity caps and technical standards. This is the cheapest point to influence the outcome.
  3. Build the project’s merit case. Allocation is competitive. In the South West, ASL assessed bids against criteria covering system impact, pathway to commercial operation, organisational capacity, community engagement and shared benefits, land use, and financial value.
  4. Apply in the allocation process. Applications set out the project’s location, output, connection arrangements and how it meets the merit criteria. Allocations so far have been run by EnergyCo (Central-West Orana) or through an ASL tender (South West). (Watson Advisory can review your access right application before you lodge it: admin@watsonadvisory.com.au)
  5. Sign the access right documents. Successful projects enter agreements that set their maximum capacity, milestones and access fees. Keep later LTESA bids consistent with these.
  6. Connect and comply. Apply to connect, meet REZ access standards, and deliver the community and employment commitments in your agreement.

Timelines

Access schemes take time. Central-West Orana was declared in December 2022 and completed its initial allocation in May 2025. The South West scheme went from a first draft in March 2023 to declaration in April 2024, and its rights were awarded in April 2025.

After an initial allocation, EnergyCo runs headroom assessments to test whether more capacity can be added. In Central-West Orana, a headroom assessment lifted the cap from 5.84 GW to 7.7 GW in January 2025. In the South West, the current draft assessment found no headroom. Additional capacity generally depends on new network investment.

Other states: Victoria

Victoria is moving to a similar model. VicGrid’s Victorian Access Regime is now targeted to start in July 2027, subject to government approvals. Until then, open access continues. Under the new regime, every new generation and storage project connecting to Victoria’s transmission network will need an access authority before receiving a connection offer. Access inside REZs will be allocated competitively against merit criteria, projects outside REZs will face a grid impact assessment, and all projects must meet the Community Engagement and Social Value Guidelines. A one-off initial allocation will cover well-advanced projects, and VicGrid plans to release draft design documents in mid to late 2026. (Watson Advisory can help you plan your engagement with VicGrid on the regime design: admin@watsonadvisory.com.au)

Common mistakes

  • Assuming an existing connection application is safe. Once a scheme is declared, network service providers cannot make an offer without an access right, even for earlier applications.
  • Leaving access fees out of the model. Base, system strength and hub-to-project fees are material, ongoing costs from commissioning.
  • Treating the right as a dispatch guarantee. The curtailment target is an average for the REZ, not a promise to your project.
  • Missing the consultation window. Scheme design is set before allocation. Once declared, the rules are hard to change. (Watson Advisory can help you prepare a consultation submission to EnergyCo: admin@watsonadvisory.com.au)
  • Weak community commitments. Community engagement and shared benefits are assessed in allocation and enforced through the agreement.

FAQ

Do I need an access right if my project is inside a REZ but connects to existing lines?

It depends on the scheme. The Central-West Orana scheme applies only to the new REZ transmission project. Other existing networks in and outside the REZ are not covered. The New England scheme applies to all high-voltage network infrastructure of 132 kV and above in that REZ. Hunter-Central Coast may apply a scheme to parts of the existing network, so check the declaration for your REZ.

Can I get an access right in Central-West Orana or the South West now?

Both initial allocations are complete. Any further rights depend on headroom assessments or, in Central-West Orana, market-led augmentation or EnergyCo’s discretion under the declaration. The South West draft assessment found no current headroom.

Who sets access fees, and where does the money go?

ASL, as Consumer Trustee, sets the fees. They are paid to the Scheme Financial Vehicle. The community and employment components flow to EnergyCo for its Community and Employment Benefit Program.

Does holding an access right help me win an LTESA?

For projects on an allocated REZ network it is a requirement: in Tender Round 8, only projects holding the relevant access right were eligible to bid. Your LTESA bid must match the milestones and configuration in your access right documents.

What about Queensland?

This guide covers NSW and Victoria, where the access arrangements are published. If your project is in Queensland, check the current state framework with Queensland Treasury, which leads on energy, before relying on any REZ arrangement.

How Watson Advisory can help

We help developers read access scheme declarations against their project, prepare consultation submissions that shape scheme design, and build the community and deliverability case that allocation processes reward. We work with EnergyCo, ASL and VicGrid processes within NSW and federal lobbying rules. Contact us at admin@watsonadvisory.com.au.

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About the author: Leigh Heaney is a Partner at Watson Advisory, specialising in government relations and public affairs. Leigh spent more than a decade as chief of staff to a senior federal frontbencher in both the House of Representatives and the Senate. Before joining Watson Advisory, Leigh was Government Relations director at Australia’s renewable energy peak body, working on the Capacity Investment Scheme and the production tax credits in the Future Made in Australia package.

This guide is general information only, current as at 22 October 2026. It is not legal, financial or tax advice. Program guidelines, eligibility and funding rounds change often, so check the official guidelines before applying, or contact Watson Advisory for advice on your circumstances.

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