The APA Group (ASX: APA) share price could soon get a boost by the company's entrance into a brand-new market in New South Wales.
The S&P/ASX 50 Index (ASX: XFL) energy infrastructure business has reportedly put itself forward to help build the state's proposed renewable energy network.
At the time of writing, the APA share price is flat today at $10.02.
Let's take a closer look at what's rumoured to be in store for the energy giant.
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Is APA planning its break into large-scale renewable energy?
Owners of APA shares could soon hold some of NSW's critical renewable energy infrastructure.
The company is vying to get involved in the state's government's plan to build renewable energy zones, according to the Australian Financial Review.
The zones will each see a single location generating renewable energy through natural assets such as wind and solar. The locations will also house energy storage systems like batteries.
As APA investors likely know, the company owns a 7,500-kilometre network of gas pipelines on Australia's east coast and major pipelines in Western Australia and the Northern Territory.
But the company has recently shown interest in branching into electricity infrastructure. It made an unsuccessful bid for formerly-listed $9.9 billion electricity supplier AusNet in September.
Now, according to today's reporting, APA has put itself forward as a candidate to design, build, and control NSW's first renewable energy zone.
Transgrid has also reportedly flagged its interest in the project.
The zone will be located in the state's Central-West Orana region, encompassing Dubbo and Wellington.
The zone is predicted to produce 3 gigawatts of new network capacity. It's also expected to bring up to $5.2 billion in private investment to the region by 2030. However, the news appears to have had little effect on the APA share price today.
The company's rumoured bid comes just days after federal energy minister Angus Taylor slammed Origin Energy Ltd (ASX: ORG) for bringing forward the closure date of Australia's largest coal-fired power station.
The Eraring power station – located in NSW's Macquarie region – will now face its D-day in 2025.
Taylor said Origin's decision was "bitterly disappointing" and the plant's closure will leave a "considerable gap in reliable generation in the National Electricity Market".
However, The Australian quoted NSW energy minister Matt Kean as responding to Taylor's comments, saying:
He knows full well that we'll be unlocking existing supply – it's not a battery replacing a power station.
APA share price snapshot
It's been a rocky start to 2022 for the APA share price. It has slipped 1.5% since the year began.
However, it is still 8.4% higher than it was this time last year.
