Critical renewable energy projects to be prioritised under new NSW law

The NSW Government will today introduce a new law that aims to speed up the delivery of key renewable energy projects.

The proposed legislation will allow the NSW Energy Minister to identify the highest-priority renewable energy projects in the planning pipeline, and prioritise them for streamlining.

Minister for Climate Change and Energy, Penny Sharpe said the legislation will result in more streamlined approvals for generation, storage and network projects that will power homes, industry and economic growth.

“The Minns Labor Government is committed to ensuring reliable, affordable energy for our heavy industries like the Tomago aluminium smelter, and to power economic growth across the state,” said Minister Sharpe.

“This new legislation will mean infrastructure projects that are critical for manufacturing jobs, economic growth and energy affordability don’t get stuck in the queue.

“No matter where you live in this state, you will benefit from us getting on with the job and delivering quality renewable projects as fast as we can.”

The proposed law will not remove any environmental or community assessment requirements. Developers will still need to meet all relevant planning, environmental and consultation obligations, said Minister for Planning and Public Spaces, Paul Scully.

Priority energy projects must demonstrate best practice in how they work with landholders and communities, particularly in regional NSW.

“With a growing pipeline of energy projects ahead of us, we need a planning system that can support achieving our ambitious energy targets,” he said.

“Since 2023, we’ve already reduced assessment times for renewable energy projects by almost 20 per cent while delivering 50 per cent more approvals.

“These reforms build on that success by enshrining the community benefit scheme and streamlining prioritised projects in the planning system with the most potential to power our state’s future, making sure the right projects are delivered at the right time in the right places in line with our energy goals.

“These reforms will also make sure critical projects are not being delayed by objections from people thousands of kilometres away who will never be impacted by them – NSW locals should and will have the loudest voice.”

Renewable energy already provides about 36% of NSW’s annual electricity supply. In a first for NSW, there were multiple periods in summer when renewable energy accounted for more than 80% of the electricity supply mix.

The proposed law is designed to build on this progress, by accelerating the infrastructure needed to generate, store and move clean energy across the state.

The Energy Legislation Amendment (Prioritising Renewable Energy) Bill 2026 will also support the effective and consistent implementation of the NSW Benefit-Sharing Guideline, ensuring councils and communities hosting projects receive associated benefits, the Ministers said.

More than $180 million in benefits have been committed to communities since the guideline’s introduction in November 2024. This is in addition to the Renewable Energy Zone community and employment benefit funds coordinated by EnergyCo.

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