en.Wedoany.com Reported - EnergyCo, the energy agency of New South Wales (NSW), Australia, has signed a project development agreement with transmission operator Transgrid to upgrade a section of the grid between Jerilderie and Wagga Wagga, unlocking grid connection capacity for 3.56 gigawatts of wind, solar, and battery storage projects in the state's South West Renewable Energy Zone (REZ).
Under the agreement, a series of transmission upgrades will enable four generation and storage projects holding access rights to the South West REZ to connect to the National Electricity Market (NEM). The agreement follows a A$225 million (US$155 million) investment by the NSW government to accelerate the delivery of the South West REZ.
Infrastructure works include upgrading the operating voltage of the Dinawan substation from 330 kV to 500 kV and adding a new switching station, upgrading the 11 km 330 kV transmission line between the Gugaa and Wagga Wagga substations, and converting the existing Dinawan-Wagga Wagga transmission line from 330 kV to 500 kV. Transgrid will be responsible for the planning, delivery, and operation of these works.
Transgrid CEO Brett Redman stated that the project will enhance grid reliability by supporting the integration of low-cost renewable energy and benefit consumers in NSW and the broader NEM.
The four projects holding access rights in the South West REZ were secured through a competitive tender process conducted by ASL in April 2025, covering solar photovoltaic, wind, and battery storage with a total allocated capacity of 3.56 GW. These projects are expected to generate over A$17.8 billion in private investment, with more than A$10 billion flowing into the NSW economy during construction and operation.
EnergyCo estimates that the REZ will support an average of 1,690 direct jobs annually during construction and 200 ongoing operational jobs, with broader ripple effects on local manufacturing, retail, transport, and service industries. A community and employment benefits plan accompanying the REZ has committed A$60 million, announced alongside the June 2026 investment package.
The South West REZ extends from west of Jerilderie to the Victorian border near Mildura, covering towns including Buronga, Gol Gol, Balranald, and Hay. The zone is underpinned by two new transmission projects. The EnergyConnect project, completed last year, is a 900 km interconnector linking South Australia and NSW that passes through the zone. The Victoria-NSW West Interconnector (VNI West), a proposed new link between NSW and Victoria, is also planned to pass through the zone, with Transgrid serving as the delivery entity for both projects.
The South West REZ is the third REZ announced in NSW, following the Central-West Orana and New England zones. Construction of Australia's first REZ, the Central-West Orana zone, began in June 2025. The South West REZ was announced in November 2022, subsequently underwent access scheme design and competitive tendering for project access rights, and has now entered the execution phase of the transmission development agreement. The NSW government's energy roadmap sets a target of adding 12 GW of renewable energy by 2030, with REZs serving as the primary mechanism for coordinating generation investment alongside transmission upgrades. The NSW government's earlier budget committed A$2.1 billion for transmission infrastructure across the entire REZ program.
