Plans have been outlined for a $7.8 billion project to transform Australia's energy map. 

The federal and New South Wales governments have jointly announced a new deal to see the Snowy 2.0 hydropower scheme and a number of renewable energy zones plugged into the national grid.

The projects are slated to bring around 3,900 jobs to regional NSW, and deliver “more reliable, more secure and more affordable” energy to the east coast.

The federal government has pledged $4.7 billion for the scheme, with a further $3.1 billion coming from NSW.

Prime Minister Anthony Albanese says it is part of a long-term plan to insulate Australia from the effects of global energy crises.

Mr Albanese says it is “one of the biggest announcements that will be made in my prime ministership”.

However, it will not do anything to drive prices down this summer. Toward that goal, the government has announced caps on gas and coal prices, including one that passed NSW parliament in an emergency session in December. 

Even so, the prime minister, premier and ministers have been keen to stress the important role the multibillion-dollar transmission project will play in the “medium term”.

NSW Treasurer Matt Kean says it is a “huge win” for the state that will “unlock cleaner, cheaper and more secure energy”.

“This $8 billion will unlock eight critical transmission infrastructure projects right around NSW,” he said.

“It will create thousands of jobs and ... unlock the opportunity to deliver $32 billion worth of private capital that will deliver new generation storage and firming over the next decade.”

The deal between the Albanese and Perrottet governments follows a multi-billion dollar joint funding package between the Commonwealth, Tasmanian and Victorian governments announced late last year.