State greenlights new transmission “backbone” for coal country, to help keep lights on as plants retire

A critically important infrastructure projects – described by state energy minister Penny Sharpe as a “missing link” – has been awarded state planning approval, clearing the way for procurement and contractor engagement to get underway.

Sharpe on Wednesday announced the critical milestone for the Hunter Transmission Project, a 110 km transmission link that will close a critical gap in the state’s electricity network, created by the exit of its ageing coal-fired power stations.

“The Hunter Transmission Project is one of the most important energy projects in NSW because it will help keep the lights on as ageing coal-fired power stations retire,” the minister said in a statement.

“This project is the missing link between the renewable energy being built in Central-West Orana and New England and the millions of homes, businesses, schools and hospitals that rely on affordable and reliable electricity every day.”

The new 110 km overhead 500 kV transmission line will run between Bayswater in the Upper Hunter and Olney in the Lower Hunter, replacing existing transmission lines that lack the capacity needed to transfer electricity from the state’s proposed renewable energy zones to consumers.

Sharpe notes that about 90 per cent of the route for the link will now be located on mining, energy and government-owned land, thus avoiding sensitive areas and minimising the impact on landholders.

According to EnergyCo, the number of directly affected private properties has been reduced from around 70 to fewer than 20 following community feedback.

Strict conditions also have been applied to the project’s approval, to protect the environment, manage construction impacts, support landowners, and ensure ongoing engagement with local communities throughout delivery.

“Planning approval means we can get on with building the infrastructure needed to secure NSW’s energy future, create jobs, attract investment and deliver cleaner, more affordable power for households and businesses,” said Sharpe.

The Hunter Transmission Project is expected to support around 830 construction jobs, including more than 160 in the Hunter region itself, while also creating broader opportunities for local manufacturers, suppliers, transport operators, and regional businesses.

All told, the project is expected to support around 1,500 direct and indirect jobs across the state.

The NSW minister for the Hunter, Yasmin Catley, said the green light for the transmission link was a major vote of confidence in the region.

“The Hunter has powered NSW for generations and this project keeps our region at the centre of the state’s energy future,” Catley said.

“[It] has always been a powerhouse of NSW and this project shows that our region is open for business and ready to lead the energy transition.”

Smart Energy Council chief David McElrea said the approval was a “massive win” for the state’s households, businesses, and the broader energy transition.

“Transmission is the backbone of a modern, low-cost electricity grid. Without critical infrastructure like the Hunter Transmission Project, we simply cannot unlock the abundant, cheap solar and wind power generated in our Renewable Energy Zones and get it to the homes, schools, and businesses that need it most.”

Commonwealth government approval is still required, but construction is expected to get underway later this year and be completed in late 2029.

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