The Hunter region's journey towards a clean energy future took a path full of twists and turns throughout 2025, setting the stage for a pivotal 2026. While significant strides were made in battery storage and solar manufacturing, the transition faced notable setbacks, particularly with offshore wind, and the anticipated exit of coal-fired power slowed.
Setbacks and Surprises in the Clean Energy Push
The year began with high hopes for offshore wind, with a proposed two-gigawatt project off the Hunter coast seen as a future powerhouse for the region's heavy industry. A feasibility licence was awarded to a partnership between Norwegian giant Equinor and Australian firm Oceanex. However, by August 2025, Equinor withdrew, dealing a national blow to offshore wind ambitions.
Climate Change and Energy Minister Chris Bowen acknowledged the delay, stating the fundamentals remained strong but the economics were challenging. Meanwhile, coal's timeline extended. Origin Energy is expected to announce a further extension of the Eraring power station's life through to 2029, while AGL plans to run Bayswater until between 2030 and 2033.
The Battery Storage Boom Gathers Pace
In contrast, the region's grid-scale battery sector charged ahead. The 850-megawatt Waratah Super Battery at Munmorah was energised in September 2025, with operations set to begin in the new year. At Eraring, Origin Energy committed $80 million for a fourth stage, boosting storage duration.
AGL progressed two major projects: the $750 million Liddell battery was registered with the market operator, and an $800 million, 500-megawatt battery at Tomago broke ground. This project benefited from falling lithium-ion costs and will create about 200 construction jobs.
Foundations for a Renewable Future
Construction of the Hunter-Central Coast Renewable Energy Zone (REZ) is slated to begin early in 2026. This zone, stretching from the Upper Hunter to the Central Coast, aims to connect about 1.8 gigawatts of new renewable generation and storage, attracting up to $3.9 billion in private investment and supporting hundreds of jobs.
A critical link for this system is the multibillion-dollar Hunter Transmission Project, designed to connect Bayswater and Eraring and transfer renewable power to Sydney. Facing landowner and environmental opposition, the project continues surveys into 2026, with construction potentially starting late that year if approved.
Amid the mixed results, Minister Bowen pointed to historic milestones, including September 2025 being the first month where renewables outpaced coal in Australia's electricity mix, followed by two consecutive months at 50% renewables. "That's what progress looks like," he said, emphasising the need to persist through the complexities of a major economic transition.
