According to an official statement, this will pave the way for the creation of transmission infrastructure required to connect large-scale solar, wind and energy storage projects to the power grid.

Covering approximately 20,000 square km, the REZ mainly covers cities and towns such as Dubbo, Dunedoo and Mudgee in the Mid West region of NSW, Xinhua news agency reported.

The state government estimates the project could spur up to 20 billion Australian dollars (about $13.3 billion) in private investment in solar, wind and energy storage projects, supporting about 5,000 jobs during peak construction.

Once finished, the project will also unlock at least 4.5 gigawatts of transmitted electricity, enough to power 1.8 million homes.

"Planning approval for the transmission lines means work can begin on the construction and operation of approximately 240 km of lines and supporting infrastructure within the Central West Orana REZ," the NSW Government said.

Minister of State for Planning and Public Spaces Paul Scully hailed the move to gain approval as a major step in "progressing 12 gigawatts of generation under the NSW Electricity Infrastructure Roadmap and moving towards our clean energy future".

“Our recent Budget invested money in the planning system to support and accelerate the NSW Government's assessment of renewable energy projects and deliver our 2050 target of net zero emissions,” the Minister said.