For the renewable energy projects, the Berejiklian government in New South Wales has identified three priority energy zones. These have seven times that state's coal-fired power plants capacity.
Renewable energy projects help in combating climate change and reducing greenhouse gas emissions.
The zones in the central-west and the south-west New South Wales and in New England could help achieving 77,000 megawatts of new generation capacity said the government in a submission to Australian Energy Markets Operation.
The additional need for transmission capacity and the demonstration of future sources of electricity is being done in a report submitted to AEMO's Integrated System Plan.
"There is more demand for new energy sources than there are cost-effective connection points - so energy zones will allow us to bring in more capacity with economies of scale," said the NSW energy minister Don Harwin.
"Due to the size of the NSW market, the output of these three zones could be the largest in the country," he said.