23 May 2025

Illawarra tapped as site for NSW’s first Urban Renewable Energy Zone in push for greener power

| Dione David
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People in hi-vis vests and hard hats sign a memorandum at the Launch of the Illawarra REZ

EndeavourEnergy General Manager Future Grid & Asset Management Colin Crisafulli, Minister for Planning and Public Spaces Paul Scully, Energy Co CEO Hannah McCaughey and Minister for Climate Change and Energy Penny Sharpe attended the roundtable to chart a course for the Illawarra urban Renewable Energy Zone. Photo: Office of Minister Penny Sharpe.

The Illawarra is poised to become the heart of NSW’s clean energy transformation, with the State Government unveiling plans to establish its first urban Renewable Energy Zone (REZ) in the region.

In a move that could reshape the local economy and redefine how power is generated and stored in urban areas, the Minns Government is hosting a high-level roundtable in Wollongong with energy experts, industry leaders and community groups to chart a course for the Illawarra REZ.

The zone — backed by a new partnership between government agency EnergyCo and electricity distributor Endeavour Energy — aims to integrate rooftop solar, community batteries and spare government and commercial space to generate and store renewable power while minimising the impact on the surrounding communities and environment by repurposing existing infrastructure where possible.

Climate and Energy Minister Penny Sharpe said the Illawarra was a natural choice for the state’s first urban REZ, citing the region’s zeal for renewables.

“This is a chance to leverage the community’s enthusiasm for solar, batteries and EVs to benefit the entire region, as well as pursue longer-term opportunities to support green manufacturing,” she said.

“The urban Renewal Energy Zone is about how we harness every rooftop and commercial facility and leverage the land in this area to build a stable, reliable power grid that uses wind and, in particular the sun, to drive not just households and the economy but the businesses here into the future.

“The roundtable is an opportunity for community, industry and energy leaders to map out the next steps for unlocking clean, reliable and affordable energy for the Illawarra Renewable Energy Zone.”

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The zone, which could deliver projects by 2030, is part of NSW’s wider Electricity Infrastructure Roadmap — a 20-year plan to replace retiring coal-fired power stations with renewable generation.

Officials say grouping solar and wind farms into dedicated zones helps drive down power prices and boost reliability by making transmission and storage more efficient.

Today’s announcement coincides with the signing of a Memorandum of Understanding between EnergyCo and Endeavour Energy to explore innovative grid and battery solutions specific to the Illawarra’s urban setting.

Minister for the Illawarra and the South Coast and Member for Keira Ryan Park pointed out that the Illawarra region contained unique features that made it an ideal location for a REZ.

“The Illawarra already hosts major energy, port and transport infrastructure, we have skilled workers ready to go, and strong demand for projects which capitalise on the region’s ability to innovate,” he said.

The Illawarra has all the components needed to trial the state’s first urban REZ. Photo: Office of Minister Penny Sharpe.

Planning Minister and Wollongong MP Paul Scully said the region was uniquely positioned to show how renewable energy production and consumption could be woven into the fabric of an industrial city.

“We want to harness where we’ve got good household solar and batteries, a great deal of government property and community batteries that we can all integrate together in an area that’s ready to lead the charge when it comes to setting a new approach to renewable energy generation, storage and transmission,” he said.

“The Illawarra has all the components we need to trial this and get it ready to be rolled out to other parts of the state. We’ve got a skilled workforce, a port and a research-led university that does some brilliant work in energy.

“We’ve also got the cutting edge companies that we need to be out there thinking about how we do it, like Green Gravity with their gravity energy storage systems, Hysata who are setting a new agenda in hydrogen production and Sicona Battery who only this week have signed a huge licensing agreement internationally.

“This roundtable brings together industry pacesetters and innovators in a crucial step towards delivering clean green energy that can meet the needs of both residents and local industry.”

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Rewiring Australia CEO Francis Vierboom said the organisation strongly supported any action towards integrating energy made by households into the grid.

“Allowing neighbours to share energy with their community and getting the most out of the region’s renewables and the grid makes sense, and saves money,” he said.

“The plans discussed today will help move energy more efficiently throughout the Illawarra, harnessing the power of rooftop solar, and then storing it so it can be used where it’s needed throughout the day.

“We’re on the path to making energy much cheaper and cleaner for everyone in our region.”

The government has committed to extensive community and industry consultation as planning for the zone moves ahead.

If successful, the Illawarra REZ could become a national model for urban renewable integration — one that not only powers homes and factories, but potentially reboots the region’s reputation as a hub for clean energy jobs and investment.

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