NSW funds $225 million upgrade to boost South West Renewable Energy Zone capacity

After completing Australia’s largest transmission line, Project EnergyConnect, Transgrid is preparing a follow-on upgrade for the South West Renewable Energy Zone. The New South Wales government has pledged $225 million to raise the voltage of the Dinawan substation and the line to Wagga Wagga from 330 kV to 500 kV, a step deemed essential for upcoming wind and solar farms. Transgrid will seek the majority of the upgrade’s funding from the Australian Energy Regulator, while the state’s money will cover early-stage procurement.

The two-year project is expected to commence in 2027 and aligns with the staged delivery plan outlined by EnergyCo’s executive project director Phil Bratby. The upgrade also serves as a hedge against uncertainties in Victoria’s VNI West project, according to Grattan Institute’s Alison Reeve. Critics, including Nexa Advisory’s Stephanie Bashir, warn that cost overruns from the original line should not be passed to consumers without stronger accountability.