Transgrid Launches Consultation on Sydney Ring South Project to Strengthen Renewable Energy Supply into Greater Sydney

Transgrid has commenced a public consultation process on the proposed Sydney Ring South transmission project, a major electricity network upgrade designed to increase the flow of renewable energy into Greater Sydney, Wollongong, and Newcastle as New South Wales advances its energy transition.

The transmission network operator has released a Project Assessment Draft Report (PADR) outlining potential infrastructure solutions aimed at strengthening the electricity network serving South Western Sydney and surrounding regions. The project has been identified as a critical component of the Australian Energy Market Operator’s (AEMO) Integrated System Plan, which outlines the long-term development pathway for Australia’s electricity system.

According to Transgrid, the preferred technical solution could deliver approximately AUD 3.2 billion in net market benefits and includes network augmentations along with a proposed new transmission connection between southern New South Wales near Bannaby and South Western Sydney. The company has opened a 13-week consultation period to gather feedback from communities, industry stakeholders, government agencies, and energy consumers.

Transgrid stated that growing electricity demand, increasing electrification of homes and businesses, and the planned retirement of coal-fired power stations are placing significant pressure on existing transmission infrastructure supplying Sydney from the south. The proposed project aims to address emerging network constraints while enabling greater access to lower-cost renewable energy generated across regional New South Wales and interstate markets.

The company noted that Sydney Ring South would support the integration of renewable energy from major energy infrastructure projects including EnergyConnect, HumeLink, VNI West, Snowy 2.0, and the South West Renewable Energy Zone (REZ). The project is expected to play an important role in maintaining grid reliability while facilitating the state’s transition toward a cleaner energy system.

Transgrid said the proposed transmission upgrades would help improve electricity supply security for Greater Sydney, Wollongong, and Newcastle, regions that collectively account for a significant share of New South Wales’ electricity demand. The infrastructure is also expected to support industrial growth, large-scale electrification initiatives, and emerging sectors such as advanced manufacturing, logistics, aviation, and data centres.

The consultation marks the first stage of the Regulatory Investment Test for Transmission (RIT-T) process, during which Transgrid will assess technical, economic, and community considerations before determining the final preferred network solution.

The Sydney Ring South project forms part of broader efforts to modernise Australia’s electricity network and strengthen transmission infrastructure needed to support increasing renewable energy penetration, system reliability, and long-term energy security as the country progresses toward a lower-carbon power system.