Thursday, March 12, 2026

NSW renewable projects declared critical infrastructure

Two renewable energy projects worth more than $7 billion, with the potential to power over a million homes in peak demand, have been declared Critical State Significant Infrastructure (CSSI) by the NSW Government.

The projects declared are:

  • The $3.5 billion Western Sydney Pumped Hydro Project at Lake Burragorang, is a ZEN Energy which will have the potential to power 500,000 homes.
  • The $3.6 billion Yarrabin (Phoenix) Pumped Hydro Project near Mudgee in Central West NSW, is a ACEN Australia project which will have the capacity to power 600,000 homes.

Both projects, are in the early planning stages and are located on WaterNSW land.

The Government says a comprehensive assessment will still be undertaken on each of the projects, including public exhibition and an opportunity for submissions from the community.

“These projects will help stabilise the grid, support energy reliability during peak demand periods and underpin the transition away from coal‑fired power,” said Minister for Energy and the Environment, Penny Sharpe.

“Long‑duration storage like pumped hydro is essential to building a modern energy system that works for households, businesses and industry across NSW.”

There are currently more than 50 renewable energy, storage and transmission projects under assessment. If approved, these 13.5 GW of generation projects could produce enough electricity to power about 6 million homes, the Government says.

A further 196 projects, including solar, wind, battery storage and pumped hydro projects are at various stages in the planning pipeline.

“These two pumped hydro projects could play a vital role in supporting our energy security together able to generate enough energy to power every home in Greater Perth during peak demand,” said Minister for Planning and Public Spaces, Paul Scully.

“These projects are part of a strong pipeline of renewable energy proposals that shows industry confidence in our planning system and our commitment to delivering the infrastructure NSW needs for a clean energy future.”

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