Energy reliability in Far West NSW

The NSW Government is taking action to strengthen energy reliability in Far West NSW, including Broken Hill.

Energy reliability means having a power system that can consistently meet customer demand with minimal interruptions. In NSW, Transgrid is responsible for maintaining reliability of the electricity transmission network.

In January 2026, NSW Government directed Transgrid to accelerate the delivery of important infrastructure in Far West NSW to prevent interruptions to the energy supply. 

We have directed Transgrid to fast-track two solutions.

Long‑term solution: Silver City 

Transgrid has identified Hydrostor’s Silver City Energy Storage System in Broken Hill as the preferred long term solution to support reliable energy supply in the region.

Silver City will provide long duration energy storage, helping to:

• respond to planned and unplanned outages
• reduce reliance on diesel generation
• contribute to NSW emissions reduction targets.

By directing Transgrid to work with Hydrostor to establish network support services delivered through Silver City, NSW Government is helping make sure the project is complete by or before 2031. Without our intervention, Hydrostor’s Silver City would likely be delayed. 

Transgrid’s 2022 Project Assessment Conclusions Report found that procuring services from Hydrostor could deliver $286 million in net benefits to NSW.

Competitive tender for a complementary long-term solution

Silver City project will take time to build. To ensure the Far West has energy reliability in the meantime and full back-up supply is provided to the region at all times, we have directed Transgrid to run a competitive tender process to secure a complementary solution that will operate alongside the Silver City facility. The tender process will:

• encourage a wide range of innovative proposals
• help identify the most efficient and cost effective option
• ensure communities are supported until Silver City is up and running in the long term.

What this means for Far West NSW

This work will help deliver:

• More reliable electricity supply for households and businesses
• Better integration of local renewable energy projects
• Lower emissions and long term economic benefits for Far West communities.

Why this action now

In October 2024, severe weather damaged transmission towers supplying Far West NSW. More than 10,000 electricity connections lost power, affecting hospitals, communications, water and other essential services. The Department of Climate Change, Energy, the Environment and Water coordinated the response under the State Electricity Supply Emergency Sub Plan and commissioned an independent after action review.

The review found that close collaboration across government, energy providers and emergency services helped restore power. It also identified ways to strengthen emergency readiness and response, especially in regional and remote communities.

The review was informed by local councils, energy providers, emergency services, health agencies, community leaders and the Australian Energy Market Operator (AEMO).

Learn more about the Far West NSW Power Outage Post Event Review Report.