An electricity substation in Hyam Street, Nowra exploded and caught fire on Wednesday around 1pm.
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There have been three large explosions which have rocked the area.
Power to the area has been cut in an area bounded by Scenic Drive, Bridge Road up to Keft Avenue, Hyam Street, Mandalay Avenue, Bridge Road, Collier Avenue, Osborne Street and Shoalhaven Street to North Street.
Hyam Street is blocked from Bridge Road to Mandalay Avenue.
Fire and rescue crews from Nowra and Shoalhaven are using water to try to douse the flames.
Endeavour Energy is trying to isolate the substation and hopes to have power restored to Bridge Road soon.
The hospital has its own power supply.
Shoalhaven and Osborne street end will take a bit longer.
Investigations into the cause of the explosion will follow.