ENERGY TRANSMISSION GIVEN CRITICAL STATUS

A $1 billion project to better connect the energy markets of NSW, South Australia and Victoria has today been declared Critical State Significant Infrastructure by Planning and Public Spaces Minister Rob Stokes.

Mr Stokes said the Transgrid project, if approved, will involve the construction of 800km of new transmission lines from the border of South Australia to Wagga Wagga, and an additional connection to Victoria's grid.

"This project could provide an important piece of NSW's energy security puzzle by improving network security and reliability, which are vital as we move to a greater reliance on renewable energy sources," Mr Stokes said.

"It could also provide a major boost to local NSW economies, creating 800 regional jobs during construction and 700 ongoing jobs."

Energy and Environment Minister Matt Kean said the transmission line is a priority project in the NSW Government's Transmission Infrastructure Strategy and the Australian Energy Market Operator's Integrated System Plan for the National Energy Market.

"This project could facilitate the development of energy projects proposed in NSW's Far West and Riverina-Murray regions, including the South-West Energy Zone," Mr Kean said.

"The NSW Government is focused on ensuring a reliable electricity system and putting downward pressure on prices for energy consumers. The project is currently undergoing a strong cost benefit test conducted by the Australian Energy Regulator to ensure that there are positive benefits to the people of NSW."

Transgrid will now prepare an Environmental Impact Statement for the project, which will go on public exhibition for community feedback.

The Department of Planning, Industry and Environment will then rigorously assess the project, before making a recommendation to Minister Stokes for a final decision.