Transgrid has published the Project Assessment Draft Report (PADR) for Sydney Ring South, a major proposed transmission project designed to strengthen electricity supply to Sydney, Newcastle, and Wollongong by unlocking greater access to lower-cost renewable energy from regional NSW and interstate markets.
The project is part of the long-term plan to ensure growing businesses and communities continue to have access to reliable, affordable and sustainable electricity as coal-fired power stations retire and energy demand increases.
The PADR assesses six credible options for strengthening the network, including the four options identified in the 2025 Electricity Network Options Report (ENOR) and tested through the Australian Energy Market Operator's Draft 2026 Integrated System Plan (ISP), as well as two additional staged development options.
Sydney Ring South would strengthen the southern section of Sydney's transmission network, creating new pathways for electricity to flow into the state's most populous demand centres. By increasing access to renewable energy resources across multiple regions and weather systems, the project would improve reliability, reduce congestion on the network and help ensure homes and businesses can access lower-cost electricity.
At this stage of the Regulatory Investment Test for Transmission (RIT-T), Transgrid's preferred option involves constructing a new 500 kV transmission line between Bannaby in the Southern Tablelands and South Western Sydney, supported by the installation of power flow control equipment on the existing 330 kV network from 2030-31.
The preferred option has an indicative capital cost of approximately $3.5 billion (nominal dollars) and is expected to be operational in the mid-2030s. This preferred option is forecast to deliver approximately $3.2 billion in net market benefits in present value terms, providing long-term value for NSW consumers and the broader economy.
Importantly, Sydney Ring South is expected to increase access to lower-cost renewable energy and place downward pressure on electricity prices. During its first decade of full operation, the project is forecast to reduce average household electricity bills by around $51 per year and average small business electricity bills by around $110 per year (real 2024-25 dollars).
The PADR marks the beginning of the next phase of consultation and assessment. No route or corridor has been selected and no decisions have been made regarding the project's location. Transgrid is encouraging community members, landholders, businesses, councils, Traditional Owners and other stakeholders to review the draft assessment and provide feedback.
Submissions on the PADR are open until 28 August 2026. Stakeholder input will play an important role in informing ongoing planning and the next stage of the RIT-T process. While the RIT-T framework focuses on identifying the option that delivers the greatest net economic benefit, Transgrid recognises that affordability, reliability, community impacts, environmental considerations, cultural heritage and equitable access to the benefits of the energy transition are all important issues for stakeholders. Feedback on any aspect of the project is welcomed.
A summary of the PADR is made available on the AEMO website. A copy of the PADR can be obtained from the Sydney Ring South | Transgrid website. For enquiries, please contact [email protected].