The multibillion-dollar Hunter Transmission Project - a key link in the state's clean energy transition - has received planning approval.
About 90 per cent of the 110-kilometre route will be located on mining, energy and government-owned land.
The number of directly affected private properties has been reduced from around 70 to fewer than 20.
The project, which will connect Bayswater and Eraring power stations, will close a critical gap left by the closure of coal-fired power stations and the development of the state's five Renewable Energy Zones.
"The Hunter Transmission Project is one of the most important energy projects in NSW because it will help keep the lights on as ageing coal-fired power stations retire," Minister for Climate Change and Energy Penny Sharpe said.
"This project is the missing link between the renewable energy being built in Central-West Orana and New England and the millions of homes, businesses, schools and hospitals that rely on affordable and reliable electricity every day.
The project will support an estimated 830 construction jobs, including more than 160 in the Hunter, while creating broader opportunities for local manufacturers, suppliers, transport operators and regional businesses.
Overall, the project is expected to support around 1500 direct and indirect jobs across NSW.
Subject to Commonwealth government approval, construction is expected to commence in late 2026 and be completed in late 2029.
EnergyCo said the approved transmission pathway had avoided and minimised impacts on trees and vegetation wherever possible.
Significantly, it now avoids nearly all of the breeding ponds of Littlejohn's Tree Frog.
The approval also contains dedicated conditions around social impacts, biodiversity, Aboriginal cultural heritage, and local business participation.
"This approval strikes an important balance between progressing a secure energy future, responsible development and conditions that require the protection of sensitive areas," Minister for Planning and Public Spaces Paul Scully said.
"The final project design reflects community feedback, reducing impacts on private land while delivering a piece of infrastructure that will help to provide NSW with more affordable, reliable and secure energy system for generations to come."
Nature Conservation Council of NSW (NCC) and local Hunter Valley community organisations welcomed the HTP's approval and called for a boost to the region's nature reserve network to offset the project's impacts.
"The Hunter Transmission Project will ensure clean and affordable energy can get to the homes and businesses that need it," NCC chief executive Jacqui Mumford said.
"This is a key step in moving off expensive fossil fuels and securing a safe climate future.
"However, the project will clear significant habitat. That's why we're calling for the creation of new protected reserves to ensure wildlife aren't stranded by these impacts and prioritise habitat corridors across the Hunter region.
"While we acknowledge that EnergyCo has done important work to reduce impacts - like avoiding some breeding ponds of the Littlejohn's Tree Frog - much more needs to be done to safeguard our species' future."
