Construction Begins on Hunter REZ Solar Farm and Battery Project
The groundbreaking ceremony has taken place for the inaugural large-scale solar and battery project in the Hunter-Central Coast Renewable Energy Zone. This initiative is crucial for advancing the region’s commitment to clean energy, particularly given its historical ties to coal mining in New South Wales.
OX2, a global developer in the renewable energy sector, reported on Friday that construction has commenced at the Muswellbrook Solar Farm and Battery project, marking a significant step for the Swedish firm as it embarks on its first owner-operated venture in Australia.
Project Details and Development
The facility will include a solar power generation capacity of 135 megawatts (MW) and a 100 MW battery energy storage system (BESS) with a total storage capacity of 200 megawatt-hours. This project is being established next to the now-closed Muswellbrook coal mine, with land provided by Idemitsu Australia, the mine’s operator.
This solar and battery installation is among the nine projects across the nation that entered into power purchase agreements with Amazon last April, forming part of a significant 430 MW, A$2.8 billion investment.
Positive Impact on the Community
“The turning of the first sod signifies the launch of a project that will showcase how Australia’s energy transformation can yield enduring advantages for regional communities,” stated Stephen Symons, vice president of OX2 Australia, during the ceremony.
He continued, “By transforming a former coal mine into a renewable energy hub, we are making a significant investment in infrastructure aimed at ensuring reliable energy, creating local employment opportunities, enhancing regional supply chains, and underpinning the future economic stability of the Hunter region.”
Alongside OX2’s executives, NSW finance minister Courtney Houssos and EnergyCo chief executive Hannah McCaughey attended the ceremonial event, highlighting the importance of this milestone for the Hunter-Central Coast Renewable Energy Zone.
Investment and Job Creation
The Hunter-Central Coast Renewable Energy Zone, which stretches from Newcastle to Muswellbrook, is projected to attract investments of up to A$3.9 billion and is expected to create about 590 direct jobs annually during the construction phase, as well as 220 ongoing operational roles from 2030.
EnergyCo has engaged Ausgrid to facilitate essential upgrades to the local distribution network, aiming to provide 1 gigawatt (GW) of new capacity by 2028, with construction having commenced in March.
On Friday, EnergyCo emphasised that as the first stage of the REZ network upgrade is finalised, projects like OX2’s initiative in Muswellbrook can connect to the grid immediately upon completion.
Future Plans and Community Engagement
According to McCaughey, it is promising to observe how the increased network capacity is fostering new renewable energy and storage projects, significantly benefiting the Hunter region economically.
For OX2, this Muswellbrook venture marks its first owner-operated project since entering the Australian market in 2022. Currently, OX2 also manages seven solar farms across the country, located in Queensland, New South Wales, and Victoria.
OX2 has a pipeline that includes 11 projects involving wind, solar, or battery technology, with four already underway, such as the Mulwala solar farm in New South Wales and the Horsham Renewable Energy Park in Victoria, which is now owned by the publicly owned SEC.
Among its developments is the Corop Solar Farm & Battery project, which comprises a 230 MW solar farm and a 290 MW battery storage system located northwest of Rushworth, Victoria. OX2 recently acquired this project from BNRG Renewables and Leeson Power Holdings.
Global law firm DLA Piper confirmed on Friday that it has been advising OX2 on every aspect of acquiring this hybrid solar and battery energy storage project, described as being in the late stages of development.
The Muswellbrook solar and battery project, situated approximately 2.5 km east of the town itself, has the capacity to generate enough electricity to power over 52,000 homes and will create approximately 200 construction jobs.
As part of its Voluntary Planning Agreement with Muswellbrook Shire Council, OX2 has pledged to contribute around A$115,000 annually to a Community Benefit Sharing Program that will fund local initiatives throughout the project’s lifespan.
