An out-of-control bushfire that's destroyed at least one home has been downgraded overnight, but fire crews say strong winds are hampering firefighting efforts.
The Currowan fire, which has burnt more than 47,000 hectares, was downgraded from an emergency warning level to "watch and act" early on Wednesday morning.
Fire authorities have confirmed at least one home has been destroyed in the blaze.
Residents in Kioloa, Bawley Point, Pretty Beach, Pebbly Beach, Depot Beach, Durras North, Termeil and Flat Rock have been told it's too late to leave and to seek shelter.
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The fire is continuing to move towards the coast, fanned by strong westerly winds, heading towards homes just north of Batemans Bay including Kioloa, Pretty Beach, Pebbly Beach, Depot Beach and Durras North.
Crews will work to clear dangerous trees along the Princes Highway on Wednesday, which had posed a risk to firefighters.
Fire crews say the blaze is also moving east towards Termeil and Bawley Point and is impacting on areas near East Lynne.
The fire has led to power being cut to nine homes in Termeil.
A spokesman for Endeavour Energy said they would aim to restore power to the area when it was safe to do so.
The Princes Highway remains closed between the Kings Highway turn off and Burrill Lake.
Drivers have been urged to avoid the area and delay their journey if possible.
Evacuation centres have been set up at the Ulladulla Civic Centre and at the Mackay Park Function Centre in Batemans Bay.
Those in the South Durras area have been urged to leave now towards Batemans Bay if it is safe to do so.
Residents in areas west of the Princes Highway between Termeil and East Lynne have been told to monitor conditions and to follow their bushfire survival plan.