Deutsche Bank has announced its role as Mandated Lead Arranger, Lender, and Hedge Counterparty for the project financing of Australia’s first Renewable Energy Zone (REZ), a landmark development to be delivered by ACEREZ — a partnership comprising ACCIONA, Vinci-owned Grupo Cobra, and Endeavour Energy.
The Central-West Orana REZ, located in New South Wales and spanning approximately 20,000 square kilometres around Dubbo and Dunedoo, marks a pivotal step in Australia’s energy transition.
ACEREZ has been appointed as the network operator, responsible for the design, construction, financing, operation, and maintenance of the REZ’s transmission network for the next 35 years.
The project will see the development of high-capacity transmission infrastructure and energy hubs, enabling the connection of at least 7.7 GW of wind, solar, and battery energy storage systems to the National Electricity Market.
The network is expected to reach a capacity of 4.5 gigawatts by 2028, supporting the integration of renewable energy and replacing aging coal-fired power plants.
Michael Volkermann, Global Head of Project Finance at Deutsche Bank, emphasised the significance of the project, stating: “Robust grid infrastructure is critical to Australia’s energy transition, and the Central-West Orana Renewable Energy Zone financial close is a major step forward.
“At Deutsche Bank, we are proud to support this milestone and stand ready to finance the next wave of critical grid network infrastructure.”
The economic impact of the REZ is expected to be substantial.
The project will support more than 5,000 construction jobs at its peak and is projected to attract up to $AU20 billion in private investment to the region by 2030.
The ACEREZ partnership was advised by Capella Capital and backed by a syndicate of domestic and international banks.
Deutsche Bank’s Corporate Bank, active in Australian project financings since 2019, continues to provide a comprehensive suite of financing solutions across the infrastructure and energy sectors.
The Central-West Orana REZ stands as a model for future renewable energy infrastructure in Australia, combining international expertise with local engagement to deliver long-term benefits for the region and the nation.
