Australian energy company Spark Renewables has proposed to develop a renewable energy and storage hub with up to 2.5GW of capacity in New South Wales (NSW).

The Dinawan Energy Hub will be a hybrid wind, solar and battery storage project located in the state’s South-West renewable energy zone (REZ).

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Spark Renewables, part of investment fund Spark Infrastructure, intends to develop the proposed Dinawan Energy Hub project after securing lease options regarding land in the region.

The hub will generate enough clean energy to power more than one million Australian homes and have the capacity to reduce carbon emissions by more than five million tonnes a year.

It will also have the potential to significantly offset the impact of coal-fired power station closures in NSW.

Spark Infrastructure managing director Rick Francis said: “The proposed Dinawan Energy Hub is an exciting new project that will accelerate the development of new renewable generation in the South-West REZ through the establishment of this large, cornerstone project.

“It will unlock significant renewable generation capacity consisting of wind, solar and battery energy storage across NSW in the coming years, providing resource diversity to renewable generation planned in the other REZs.”

The proposed project is currently in the early planning stage, with preliminary studies and consultation process due to begin in the coming months.

Construction works for the project’s first stage are anticipated to begin in 2024, with its first operations due to start the following year.

Spark Renewables head Anthony Marriner said: “We are only at the start of the development process and the proposed project must undergo a rigorous planning and assessment process, which includes environmental studies.

“We are also committed to extensive community and stakeholder consultation to identify the possible environmental, economic and social impacts [of the project], as well as opportunities and mitigation measures.”

Last year, Spark Infrastructure developed the 100MWac Bomen Solar Farm in the Wagga Wagga Special Activation Precinct.