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Central-West Orana Renewable Energy Zone (REZ) Project, NSW

Central-West Orana Renewable Energy Zone (REZ) Project, NSW
Client:
Energy Corporation of New South Wales
Project Value:
>$1 billion
Years of Service:
2022
Services Provided:
  • Transaction and Commercial Advisory Services

Playing a vital role in delivering affordable, reliable and renewable energy for generations to come.

The Central-West Orana REZ is a key part of the NSW Government’s Electricity Infrastructure Roadmap (DPIE, 2020) and the associated Electricity Infrastructure Investment Act 2020 (NSW) (EII Act).

CLIENT'S OBJECTIVE:

As part of the NSW Government’s plan, REZs will play a vital role in delivering affordable, reliable and renewable energy generation to help replace the State’s existing coal fired power stations as they come to the end of their scheduled operational life.

The Central West Orana region has been chosen to host the first coordinated REZ in Australia due to its proximity to the existing ‘backbone’ transmission network, its mix of energy resources, and significant investor interest.

OUR ROLE:

ConnellGriffin was appointed to provide Transaction and Commercial advisory services to EnergyCo. The role includes leading the procurement process to appoint a private sector network operator to design, finance, build, operate and maintain network infrastructure for the Central-West Orana REZ. The new grid connections will include energy hubs and new high-capacity transmission lines. The services provided to date have included:

  • Leading, implementing and management of the entire procurement process, including drafting of the RFP documentation, developing a highly interactive tendering process, coordination of all correspondence, data room establishment;
  • establishing and documenting the commercial principles and associated risk allocation which guided the production of the draft project deed;
  • coordinating the project team and supporting the technical, environment and planning, property and community and stakeholder engagement teams produce the technical requirements and during the RFP period;
  • managing the evaluation of proposals, for both non-price and price evaluation workstreams, including facilitating the finalsation of the evaluation process and the preparation of and obtaining a ‘revise and confirm’ offer from the proponents;
  • facilitating issues resolution, and appropriately capturing agreed positions in the contract and technical documentation;
  • leading the development of the suite of third-party agreements;
  • establishing the Candidate Foundation Generator (CFG) process and managing the interactions with the CFGs including managing the Data Room for those interactions;
  • supporting EnergyCo and Consumer Trustee in preparing for Access Rights Tender;
  • leading the coordination of cross-discipline matters relating to the Network Operator, the CFGs, and other Generators and third parties including Councils and Mine Operators, to ensure strategic alignment between the Project’s workstreams and EnergyCo’s mandate; and
  • providing a high level of commercial and technical support during negotiations and contract finalisation with the recommended proponent.

ACHIEVEMENTS, SOLUTIONS AND VALUE ADDS:

The ConnellGriffin team was able to successfully integrate into the EnergyCo project team and deliver the suite of RFP documents on schedule.

Our Advisors have been instrumental in understanding the dependencies between Network Operator (NO) procurement, NO environmental planning, Access Rights tender, Generator project development and commercial arrangements and adopting to the changes accordingly.

The ConnellGriffin CFG team is supporting the project in developing pragmatic solution for generators physical connections with consideration to technical, commercial, landholder and environmental planning constraints. The CFG team is also navigating the complex stakeholder interplay to reach outcomes between generators, EnergyCo team, councils and the Department of Planning and Environment on issues relating to Environmental Planning and Social License for the generators.

Setting up a cross discipline coordination working model to improve collaboration between the CFG process, project Social License initiatives, council discussions and EnergyCo policy development to develop solutions to multi-faceted problems and drive the actions to reach decisions.

This engagement process ensures that the new high voltage network that is developed is suitable for the generators and enables multiple generators to connect to the new network collectively.

CG Team Members Involved:

Martin Newham Martin Newham Director Richard Butlin Richard Butlin Director Scott Kindred Scott Kindred Director Andrew Harfield Andrew Harfield Director Rhys Davies Rhys Davies Executive Advisor Siva Hesavan Siva Hesavan Senior Advisor Gavin Shardlow Gavin Shardlow Senior Advisor Isla Pym Isla Pym Senior Advisor Samuel Lombard Samuel Lombard Senior Advisor

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