A critically important infrastructure projects – described by state energy minister Penny Sharpe as a “missing link” – has been awarded state planning approval, clearing the way for procurement and contractor engagement to get underway.

Sharpe on Wednesday announced the critical milestone for the Hunter Transmission Project, a 110 km transmission link that will close a critical gap in the state’s electricity network, created by the exit of its ageing coal-fired power stations.

“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,” the minister said in a statement.

“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 new 110 km overhead 500 kV transmission line will run between Bayswater in the Upper Hunter and Olney in the Lower Hunter, replacing existing transmission lines that lack the capacity needed to transfer electricity from the state’s proposed renewable energy zones to consumers.