Port Kembla Renewable Energy Zone Bill and Wollongong Infrastructure Upgrades

The NSW Parliament passed the Port Kembla Renewable Energy Zone Bill on 2 July 2026. The bill creates a formal process for approving transmission links and worker training funds tied to the existing renewable energy zone at Port Kembla.

State budget papers released in May 2026 listed the zone as one of five priority infrastructure areas for the Illawarra. The bill responds to that listing by requiring the energy department to publish project schedules within 90 days of royal assent.

Daily effects for local residents

Residents in Port Kembla and Warrawong will see construction traffic increase on Five Islands Road once contracts are let. The bill requires project operators to use designated haul routes and contribute to road maintenance through a levy calculated on tonnage moved.

BlueScope employees at the Port Kembla steelworks can apply for places in the retraining scheme the bill funds. The scheme covers certificates in high-voltage installation and solar component assembly, with the first intake scheduled for February 2027 at the TAFE Illawarra campus.

The legislation also directs $85 million from the 2026-27 capital works program toward substation upgrades at Kembla Grange. This amount appears in the NSW Infrastructure Statement under line item 4.3.2 for regional transmission reinforcement.

Implementation timeline

The energy department must publish draft guidelines for public comment by 15 October 2026. Wollongong City Council will then have 60 days to respond on local planning controls before the first connection applications open in early 2027.

Policy analysts at the Productivity Commission have recorded that comparable zone legislation in the Hunter region produced 620 direct construction positions within 18 months of similar funding rules taking effect.