newy.com.au – Construction has begun on a 135-megawatt solar farm and 100MW battery at a former coal mine near Muswellbrook, in the first major renewable energy project due to connect to the Hunter-Central Coast Renewable Energy Zone.
The project, 2.5 kilometres east of Muswellbrook, is expected to support about 200 construction jobs before connecting to the upgraded electricity grid in late 2027 and becoming operational by 2028.
Its solar farm is forecast to produce electricity equivalent to the needs of about 52,000 homes, while the battery will store power for use when it is needed and help support grid reliability.
Renewable energy company OX2 is delivering the project, which it co-developed with Idemitsu Australia and took to financial close in May 2026.
OX2 Australia vice-president Stephen Symons said the development would give the former mining land a new role in the Hunter’s energy industry.
“By repurposing a former coal mine site into a renewables hub, we’re investing in infrastructure that will provide reliable energy, create local jobs, strengthen regional supply chains and support the Hunter’s future prosperity,” he said.
Under an agreement with Muswellbrook Shire Council, OX2 will contribute $115,000 a year to a community benefit-sharing program.
The project is among the first to make use of grid upgrades being delivered for the Hunter-Central Coast Renewable Energy Zone. Unlike other renewable energy zones that require extensive new transmission corridors, the Hunter project relies partly on upgrades to existing distribution poles, wires and substations.
EnergyCo has commissioned Ausgrid to deliver work intended to unlock one gigawatt of additional network capacity by 2028. The broader infrastructure program is ultimately designed to connect another 1.8GW of renewable generation and storage.
The work includes upgrades to about 85 kilometres of sub-transmission lines, new energy hubs at Sandy Creek and Antiene in the Muswellbrook local government area, substation improvements and 18 kilometres of underground fibre-optic communications cable.
EnergyCo chief executive Hannah McCaughey said the extra network capacity was already encouraging new investment.
“It’s pleasing to see that the additional network capacity we are building in the Hunter-Central Coast REZ is already unlocking new renewable energy and storage projects, delivering economic benefits to the Hunter region,” she said.
EnergyCo estimates the renewable energy zone could attract up to $3.9 billion in private investment. It forecasts an average of about 590 direct jobs a year during the broader construction program and 220 ongoing operational jobs from 2030.
