That's the forecast from high voltage electricity transmission network operator Transgrid, who released a new report on Thursday about maintaining a reliable electricity supply to these areas.

As part of its Bathurst, Orange and Parkes Supply project, Transgrid has identified grid-scale Battery Energy Storage Systems (BESS) as part of the preferred option to maintain a reliable electricity supply and meet expected demand growths in the Parkes, Orange and Bathurst areas.

According to the report, this is mainly due to the expansion of existing large mines and the planned connection of new mines and industrial loads, as well as the general load growth around Parkes, including from the NSW Government's Parkes Special Activation Precinct (SAP).

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"If the longer-term constraints on load growth aren't resolved it could result in the interruption of a significant amount of electricity supply in Orange and Parkes," Transgrid said in a media announcement.

Transgrid has been reviewing options to avoid interruption to customers and has published the Project Assessment Conclusions Report (PACR) into securing the region's power supply into the future.

Stage one of the preferred option would see BESS installed at substations at Parkes and Panorama - this, along with the installation of dynamic reactive power support devices in the near term.

Transgrid says the non-network solutions will provide up to 50 MVAr (megavolt ampere of reactive power) at Parkes and 30 MVAr at Panorama of dynamic reactive support by 2025 to manage voltage variations during high demand periods.

"Subject to approvals, the batteries could be completed by 2024-2025," the announcement said.

Transgrid recognised that the BESS options will have higher benefits because they can be commissioned sooner than the network-only options, avoiding the risk of supply outages in the short-term.

The preferred option also includes the installation of static synchronous compensators at Parkes and Panorama or a synchronous condenser at Parkes.

There is also a proposal for a new 132 kV line between Wellington and Parkes in the future as stage 2 of the project.

At this early stage, Transgrid says the exact route, design and location of any new infrastructure has not been determined, but confirmed any work done would be within the Environmental Impact Statement (EIS) process.

Executive General Manager of Network Marie Jordan says it is a significant milestone.

"We looked at multiple options for addressing load constraints on our network and we are excited to say that grid-scale batteries have been identified as the preferred option as they provided the greatest overall benefit," she said.

"This project is among the first in the National Electricity Market where a solution involving large-scale batteries has outperformed other options throughout the regulatory test.

"It is another sign of how rapidly our energy system is changing and how we need to adapt and embrace new technology as we embark on the energy transition.

"Transgrid actively seeks out opportunities to partner with non-network providers to deliver innovative solutions where they are better for customers than traditional network infrastructure alone."

Two proposals from separate third parties for a grid-scale BESS were ranked equal in Transgrid's PACR assessment.

"Transgrid will now enter a competitive procurement process and begin commercial negotiations with non-network proponents to put a contract in place," Transgrid said.

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