Under the proposal, a Sydney City Renewable Energy Zone would be established to support greater use of solar and battery storage across the city, while the New England project would be scaled back and its proposed 500-kilovolt transmission line corridor scrapped.

An opposition plan to abolish a major transmission line and push renewables projects into the outback could waylay Australia’s energy transition.

Under the proposal, a Sydney City Renewable Energy Zone would be established to support greater use of solar and battery storage across the city, while the New England project…