The NSW government formally announced the start of construction of the nation's first Renewable Energy Zone (REZ) in the Central West-Orana but communities are still skeptical about the benefit the REZ will bring. 

In the Western Plains region, the REZ will include parts of the Gilgandra, Narromine, and Warrumbungle shires.

The area was chosen following a geospatial mapping exercise from the NSW government in 2018 which identified optimal locations to host renewable energy generation.

This included areas with strong renewable energy resource potential, proximity to the existing electricity network, and consideration of potential interactions with existing land uses, including agricultural lands and biodiversity conservation.

Map of the Central West - Orana REZ. Photo: NSW Government.

Energy Co appointed a consortium of ACCIONA, COBRA, and Endeavor Energy called ACEREZ to design, build, finance, and operate the REZ transmission project.

"We will work alongside Central-West Orana communities to provide jobs and economic growth and lasting benefits across the region," ACEREZ chief executive Trevor Armstrong said. 

The NSW government says the REZ will deliver a significant energy and economic boost to the region. 

The project is expected to deliver 4.5 gigawatts of new network capacity by 2028 to connect 7.7 gigawatts of wind and solar projects powering over two million homes annually and deliver over 5,000 construction jobs, according to the NSW government.

Councils as well as community and First Nations groups can apply for grants from the NSW government to cover costs associated with Central-West Orana REZ. 

"With three out of four of the state's remaining coal-fired power stations set to close in less than 10 years, this Renewable Energy Zone will help us meet our future energy needs in order to keep the lights on and avoid price spikes," Minister for Climate Change and Energy Penny Sharpe said. 

"The project will also inject billions of dollars in private investment into the Central-West Orana region by 2030, along with thousands of jobs and opportunities for local suppliers." 

The REZ has been received with mixed reactions from landholders and local government.  

In the Warrumbungle Shire, there are currently 11 proposed projects including the REZ transmission line in Coolah, Dunedoo, Leadville, and Uarbry.  

Warrumbungle Mayor Kathryn Rindfleish said landholders' reactions to the REZ projects have been varied. 

"Some are concerned about the direct impacts on their local community," Cr Rindfleish said. 

"Council has concerns about damage and impacts to our local roads as a result of the increased traffic numbers, impacts on the environment particularly water, sewerage, and waste, socio-economic impacts with emergency services, medical and health, police, population, and workforce." 

So far, Gilgandra has three solar farms and a proposal for one wind farm. 

"Gilgandra's exposure to the REZ has been somewhat limited because we're on the periphery of it," Gilgandra Mayor Doug Batten said. 

Cr Batten is hoping for more involvement in the state government's plans for the rollout of the REZ. 

"They've done a bit of work regarding landholder involvement. With council, they've had very little contact."

Gilgandra is part of the Coalition of Renewable Energy Mayors which was formed following a growing number of renewable projects across regional NSW and helps maintain transparency with other shires. 

"We're aware of what's going on in everyone's shire. If they're offering so much a kilowatt hour in the Armidale region, we expect the same in the Gilgandra region. " 

Gilgandra Mayor Doug Batten. IMAGE: Gilgandra Shire Council

The Narromine Shire Council said they are working together with the state government to tackle any potential issues with REZ projects.

"Staff have been working with state government departments on cumulative impacts relating to housing, employment, and servicing," Narromine Shire General Manager Jane Redden said.

"Narromine Shire Council looks forward to working with all concerned to mitigate the local impacts of the cumulative projects and to take advantage of any economic opportunities."

Early works on the project began in February and construction is scheduled to start mid-year.