The Renewable Energy Zone planned for the Orana regions has ben declared as a critical project.
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Planning Minister Rob Stokes has declared the REZ as Critical State Significant Infrastructure. The declaration is made for high priority infrastructure projects essential to the state for economic, social or environmental reasons.
The REZ has has made the cut due to its importance to future energy supply and security.
Mr Stokes said the project could help to bring a significant capacity of renewable energy online.
"If approved, this project will deliver 3000 megawatts of new energy capacity which is enough to power 1.4 million homes and pave the way for $5.2 billion in private investment in renewable energy projects," he said.
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"This would increase the grid's capacity and enable the development of Australia's first coordinated Renewable Energy Zone which will support the pipeline of wind, solar and energy storage projects in the Central West Orana region."
Transgrid chief executive officer Paul Italiano said early next year staff would be in the region talking to community members about the project.
"Their feedback will inform planning about the transmission line route and help us minimise impacts on communities and maximum benefits for the local region," he said.
The proposed transmission lines will run north-west from the existing network near Merriwa, passing south of Dunedoo, before going south-west to connect to the network east of Wellington.
The REZ is expected to be shovel-ready at the end of 2022, with construction to start in early 2023.
More information is available by calling the project hotline on 1800 313 212 or on the Transgrid website.