Transgrid, owner of the NSW power grid, will invest up to $700 million in equipment that will stabilise the state’s electricity system during the renewable energy transition, but will require government support, said chief executive Brett Redman.

Negotiations were ongoing with the state government and the Australian Energy Regulator, Redman said, on underwriting support for up to $700 million in financing required to purchase five synchronous condensers. He said the company needed the support to maintain its credit rating and keep investing in projects critical for the renewable transition.