Western Australian Energy Minister Mike Nahan announced the initiative would be established by a high-level project team, to be led by Synergy chairman Lyndon Rowe.
Joining Rowe will be senior representation from the departments of State Development and Treasury, and from the Public Utilities Office within the Department of Finance.
Senior executives from industry with current or planned investments or interests in the Pilbara region will also form part of the team.
Nahan said the current transmission infrastructure which made up the North West Interconnected System, suffered from fragmented interconnection points with a range of different voltages, multiple points of transformation and constrained capacity.
"The Pilbara Energy Infrastructure project will facilitate an interconnected electricity system, with a governance model to facilitate efficient construction and use of infrastructure, and encourage further private sector investment," he said.
"This is necessary to ensure a sustainable and efficient energy sector in the region, for the longer-term security of electricity supplies and development of the Pilbara region.
"This project proposal reflects the State Government's considered approach to energy planning, enabling secure, reliable and competitive electricity supplies that meet the demands of consumers."
The first stage of the project will comprise a feasibility study for a new infrastructure model, with stage two being the implementation of the model.
The NWIS covers key centres Port Hedland and Karratha and is owned by multiple private-sector and state-owned businesses.