The NSW Department of Planning, Industry and Environment on Tuesday gave state significant infrastructure to the stage one western section of Project EnergyConnect, a 900-kilometre transmission line designed to carry 330 kilovolts.

The western section involves constructing and operating a new 130-kilometre long transmission line between the NSW and SA border near Chowilla to the existing Buronga substation.

EnergyConnect will also upgrade a 22-kilometre section of the existing 220 kilovolt transmission line between the Buronga substation and the Victorian border.

NSW Planning and Public Spaces Minister Rob Stokes said the stage one approval was "a major step towards facilitating the delivery of what would be the largest energy transmission project undertaken in Australia in more than 30 years".

Stage two will involve the development of the 540-kilometre eastern section between Buronga and Wagga and will be subject to a separate development.

The Environment Impact Statement for the EnergyConnect's Wagga stage will go on public display early next year.

The organisation behind EnergyConnect in NSW, electricity grid operator Transgrid, also announced this week that it would spend an additional $180 million to upgrade Wagga's section from 330 to 500 kilovolts.

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Transgrid acting chief executive Brian Salter said EnergyConnect would save NSW energy customers $180 million per year and create up to 1500 jobs.

"The interconnector is one of the largest projects ever proposed in the National Electricity Market and it will facilitate Australia's energy transition, bringing a reduction in carbon emissions and helping the nation meet its climate change targets," he said.

"The project will be the critical missing link in the National Electricity Market, connecting more renewable generation and reinforcing connectivity between the state grids of NSW, South Australia and Victoria."

The overall project is expected to be operational by 2024.

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