In 2025, transmission system planning processes identified a potential future shortfall in system strength. This prompted the NSW Energy Minister to issue a Priority Network Infrastructure Project Direction Order under the Electricity Infrastructure Investment Act for the System Strength Project (SSP).

The Direction requires Transgrid to carry out the SSP and submit a revenue proposal for the SSP to the regulator for our assessment. In March 2026, the NSW Energy Minister issued an updated version of this Direction in the NSW Government Gazette.

A map of NSW showing the locations of the five sites for the synchronous condensers.

The SSP involves the deployment of 10 synchronous condensers that will work to maintain voltage and system stability. Transgrid proposed that 2 synchronous condensers be deployed at each of the 5 key locations across NSW, from Darlington Point in the south to Armidale, 850kms away in the north.

Transgrid’s deployment of synchronous condensers to its network is part of a broader portfolio of solutions to maintain system strength in NSW.

Project components

The SSP is a hybrid project, meaning it contains contestable and non-contestable components, namely: 

The design, manufacture, delivery, installation and maintenance of synchronous condensers at 5 locations providing a system strength solution of 950 MVA at each location.

Design and construction work to integrate the synchronous condenser at each of the 5 locations, such as earthworks foundations, civil work, site infrastructure and substation enabling work.

The network connection as well as operation and maintenance of assets not captured under the Synchronous Condenser Package, and interface management of the parties, all to be undertaken by Transgrid.

System Strength Project (hybrid)

The AER has commenced its assessment of Transgrid’s System Strength Project and will make its final decision on or before 21 October 2026.
Determinations
Open
Effective date
Commencement date
Accepting submissions
REZ
Transmission
NSW