Australia is at a pivotal moment in its energy transition. And one of the smartest, most overlooked tools to accelerate progress might be hiding in plain sight: Urban Renewable Energy Zones (UREZs).
The NSW Government’s recent proposal to create the nation’s first UREZ is a bold step in a new direction, one that moves away from the long-held belief that renewables must come from remote mega-projects and sprawling transmission lines. Instead, it asks a far simpler, smarter question:
What if we started building the renewable future right where energy is used most within our cities, suburbs, and industrial zones?
Why it makes sense
Australia’s largest power station isn’t in the outback, its not in a valley or on top of a hill. It’s on the rooftops of more than 4 million homes and businesses who have invested in solar.
Rooftop solar already delivers more electricity than any other single source in the country. And we’ve only scratched the surface.
Industrial estates, warehouses, retail centres, and logistics hubs across Australia present an enormous untapped opportunity. The square metre potential is staggering and it’s right there, overhead.
- Up to 25% of national electricity demand could be met using commercial and industrial rooftops.
- 10GW of commercial-scale solar could be deployed rapidly, helping replace the capacity lost by retiring coal plants like Eraring.
- When paired with local batteries and smart demand response, this could deliver a faster, cheaper, and more resilient energy future.
A faster, smarter alternative to Business-As-Usual
AEMO’s most recent integrated system plan outlines $16 billion in transmission upgrades needed by 2030. Yet many of these “critical” projects, identified as far back as 2017, are still unbuilt.
By contrast, UREZs offer an elegant alternative: local energy for local use.
With less than $10 billion, we could build out an urban energy system that:
- Requires no vast new land acquisitions
- Minimises environmental impact and community resistance
- Accelerates deployment by using infrastructure that already exists
This isn’t just about energy infrastructure, it’s about reimagining the grid to work smarter, not bigger.
What this means for business leaders
For CEOs, CFOs, COOs, and Heads of Finance, Procurement, or Operations this shift represents a strategic inflection point.
Energy is no longer just an overhead. It’s a competitive advantage.
By adopting on-site renewables and battery storage, businesses can:
- Lock in lower, more predictable energy costs
- Reduce exposure to volatile energy markets and policy shifts
- Achieve net zero targets faster and with greater credibility
- Improve ESG performance and access sustainable finance
- Build energy reliability for increasingly uncertain times
Better still, many of these upgrades can be delivered with no upfront capital through models like power purchase agreements (PPAs), operating leases, or fully-financed solar-as-a-service.
From passive users to active participants
The UREZ model is more than a policy idea. It’s a mindset shift.
For decades, energy systems were designed around centralised generation and passive consumption. But now, we have the tools (solar, batteries, EVs, demand response etc) to create decentralised, dynamic, and locally optimised networks.
With the right leadership, our cities and industrial zones can become not just energy users, but energy engines producing, storing, and sharing power within self-sustaining urban ecosystems.
Final thought: why not?
The path is clear. The infrastructure is ready. The economics make sense. And the environmental imperative has never been more urgent.
So why aren’t we moving faster?
If we’re serious about decarbonisation, grid resilience, and energy affordability, Urban Renewable Energy Zones shouldn’t be a question mark.
They should be our next move.