Origin exits 870MW Skye Ridge wind project as costs rise
Origin Energy has withdrawn from its proposed 870MW Skye Ridge wind farm near Walcha in northern New South Wales, saying the economics of developing the project have deteriorated as wind construction costs have risen sharply.
The company told local groups it would exit the project and cease related development activity immediately. Origin said the cost of building new wind generation was now roughly 50 per cent higher than in 2020, changing the relative economics of progressing two nearby projects at the same time.
Instead, Origin will concentrate capital and development resources on its Northern Tablelands Wind Farm near Armidale, which it described as having the strongest prospect of timely delivery.
Higher costs reshape Origin’s wind pipeline
Origin acquired Skye Ridge from renewable developer Walcha Energy a little over two years ago. The project formed part of the company’s development interests in the New England Renewable Energy Zone, where new transmission infrastructure is intended to support large-scale renewable generation. NSW EnergyCo says the zone is being developed through staged transmission investment, with the first stage planned to provide 2.4GW of transfer capacity by 2032. EnergyCo
The decision leaves Origin with a smaller wind development pipeline at a time when large-scale wind investment has been under pressure from higher construction costs, slower transmission development and community opposition.
In its communication to landowners, Origin characterised the withdrawal as a commercial decision rather than a retreat from the region. The company said it remained committed to the New England Renewable Energy Zone but no longer saw a case for advancing two projects located close to one another.
Origin’s earlier acquisition strategy had expanded its renewable development interests across the New England region, including Skye Ridge and Northern Tablelands. Company material previously described Skye Ridge as having potential output of up to 870MW. Origin Energy
Broader project rationalisation continues
The Skye Ridge exit follows other moves by Origin to narrow its development portfolio and direct capital towards projects it considers more financially viable.
In late 2025, the company put its proposed $8 billion Navigator North offshore wind farm on hold and shifted attention towards other developments, including grid-scale batteries.
The company is also developing a large battery at its Eraring power station site in New South Wales. When completed, the project is expected to rank among the largest batteries in the southern hemisphere, according to the report.
Skye Ridge is not the only wind project in the New England region to be abandoned. In July, Squadron Energy dropped plans for a 426MW wind farm and said it would instead focus on more advanced projects with stronger technical, commercial and community foundations.
The New England Renewable Energy Zone is one of the areas being developed to accommodate new wind and solar generation in NSW. The project’s transmission network is planned in stages, with EnergyCo overseeing the infrastructure required to connect generation and storage to the grid. EnergyCo
For renewable energy investors and developers, Origin’s decision highlights the growing importance of construction costs, transmission timing and project concentration when determining which large-scale wind developments proceed to the next stage.
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Based on reporting by The Australian Financial Review.