Imagine a future where Australia’s vast, sun-drenched and wind-swept inland regions become the powerhouse of its clean energy transition. This vision is closer than you think, as a coalition of global and local renewable energy giants has reignited efforts to create a massive inland renewables zone in New South Wales (NSW). But here’s where it gets controversial: could this be the ‘least-regret pathway’ to a coal-free NSW, or are there hidden challenges lurking beneath the surface? Let’s dive in.
A bold proposal to develop gigawatt-scale renewable energy zones in remote, sparsely populated areas of inland NSW has resurfaced, this time backed by a formidable consortium. This group, which includes Tilt Renewables, Squadron Energy, Iberdrola, Acciona Energía, Ark Energy, and Voyager Renewables, has submitted a plan for the ‘Inland Renewable Energy Region’ to the Australian Energy Market Operator’s (AEMO) Draft 2026 Integrated System Plan. Their pitch? To unlock a renewable energy treasure trove in far north-west and western NSW, where abundant wind and solar resources meet minimal development hurdles and supportive local communities.
And this is the part most people miss: the consortium argues that this inland zone could support over 10 gigawatts (GW) of renewable power at full scale, with a first-stage capacity of 2-4 GW by 2035 and 6 GW by 2040. This isn’t just a pipe dream—it’s a strategically sound move to diversify NSW’s energy supply as coal plants retire. But why inland? The consortium points out that existing zones face social, land use, and capacity constraints, while offshore wind projects are costly and time-consuming. Inland regions, they argue, offer a more straightforward path with stronger fundamentals and fewer barriers.
This idea isn’t entirely new. Back in 2024, NSW network company Transgrid proposed three ‘remote’ renewable energy zones (REZs) around Broken Hill, Noona, and the north-west, connected by new high-voltage transmission lines. Transgrid’s rationale? These regions boast some of the best solar and wind resources in the National Electricity Market (NEM), with high capacity factors and favorable solar-wind correlations. However, as Renew Economy editor Giles Parkinson noted, Transgrid’s interest might not be purely altruistic—building these transmission lines would naturally fall under their purview.
But here’s the kicker: while Transgrid isn’t part of the current consortium, the proposal aligns with their earlier vision. The consortium has even signed a memorandum of understanding to jointly assess the feasibility of a major transmission link to the Cobar region, 300km north-west of Dubbo. They’re urging AEMO to prioritize this project in its final 2026 Integrated System Plan, due in June. If successful, this inland REZ could not only power NSW but also interconnect with South Australia, Queensland, and Victoria, creating a robust inland energy corridor.
However, this proposal isn’t without its controversies. Critics might argue that the added costs of long-distance transmission could outweigh the benefits of better wind and solar resources. Others might question the environmental impact of large-scale development in remote areas. What do you think? Is this inland renewables zone the game-changer NSW needs, or are there better alternatives?
Meanwhile, the companies involved are no strangers to Australia’s energy landscape. Acciona is partnering with Transgrid on the $1.4 billion HumeLink transmission project, while Iberdrola recently won the contract to develop the Victorian section of the Victoria to NSW Interconnector West. In NSW, both Iberdrola and Acciona are vying to become the network operator for the proposed New England REZ.
The consortium’s submission also calls on AEMO to include the Inland Renewable Energy Region in its Optimal Development Path (ODP) and ensure a regulatory framework that facilitates timely delivery. Their message is clear: this project is a scalable, nationally significant opportunity to meet Australia’s reliability, affordability, and decarbonization goals.
As the debate heats up, one thing is certain: the future of NSW’s energy transition hangs in the balance. Will this inland renewables zone be the key to a coal-free future, or is it just one piece of a larger puzzle? We want to hear from you—share your thoughts in the comments below!
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