NSW commits $225m to South West Renewable Energy Zone upgrade

Four major wind, solar, and battery projects supported.

The Minns Labor Government will invest $225m in the 2026 NSW Budget to expand renewable energy infrastructure in the state’s south west, aiming to increase grid capacity and support lower electricity costs as coal-fired power stations retire.

The funding will go toward critical upgrades in the South West Renewable Energy Zone, enabling new wind, solar, and battery projects to connect to the electricity network.

The investment is expected to support four major projects and unlock about 1.3 gigawatts of additional capacity—more than half of the zone’s planned total.

The program includes extending the 500kV transmission network to the Dinawan Substation, along with early works, procurement of key equipment such as transformers and circuit breakers, and upgrades to increase substation capacity.

Once completed, the projects are expected to generate enough electricity to power about 1.6 million homes annually.

The investment will also support development of major projects including Bullawah Wind Farm, Yanco Delta Wind Farm, Pottinger Energy Park, and the Dinawan Energy Hub.

The renewable zone stretches from west of Jerilderie to the Victorian border near Mildura, including Buronga, Gol Gol, Balranald, and Hay.

During construction, the initiative is expected to create around 1,690 direct jobs per year, with additional ongoing employment and broader economic activity in regional communities.