Renewable Energy Zones

Renewable Energy Zones (REZs) are areas designated by the Australian government for large-scale deployment of renewable energy infrastructure. The goal of REZs is to co-locate renewable energy infrastructure and investment within Australia's National Electricity Market (NEM), reducing the overall costs of electricity generation and transmission. The New South Wales government describes REZs as "the equivalent of modern-day power stations", combining generators, storage, and high-voltage transmission.

As of 2025, there are five announced renewable energy zones in New South Wales, six in Victoria, one in Tasmania, and twelve planned in Queensland. The Australian Energy Market Operator shortlisted a total of 43 potential REZs in its 2024 Integrated System Plan. Most renewable energy zones have been designed to host one or more types of renewable energy infrastructure, such as solar farms, wind farms, battery storage, or pumped hydropower. One of the primary goals of REZs is to coordinate the development of transmission infrastructure, taking advantage of the existing infrastructure associated with fossil fuel plants scheduled for decommission. The Australian Electricity Market Operator projects that Australia will need an additional 10,000km of transmission lines in order to support the transition to renewable energy.

Renewable energy zones have been controversial in many areas of regional Australia, with concerns ranging from a loss of agricultural land to fears of overdevelopment and damage to natural landscapes. Some Indigenous communities have opposed the use of their traditional lands for renewable energy infrastructure development. Developers and governments have attempted to assuage these concerns by offering payments to land owners and communities impacted by renewable energy projects.