The NSW Government has introduced new legislation to support the delivery of critical, high quality energy infrastructure. This infrastructure is needed to maintain a reliable electricity system as we transition to renewable-based power.
How we’re getting the job done
NSW Government is introducing the Energy Legislation Amendment (Prioritising Renewable Energy) Bill, which is an amendment to the Electricity Supply Act 1995 and the Environmental Planning and Assessment Act 1979.
The bill will prioritise and streamline the delivery of renewable energy generation, storage, firming, transmission and distribution infrastructure projects critical to the energy transition. It will:
- allow the Minister for Energy (or a person appointed by the Minister) to declare high-quality energy projects needed for NSW’s electricity transition as priority energy projects (PEPs)
- allow the Minister for Planning to consider priority energy projects when determining planning pathways, and to direct planning agencies on how they carry out their responsibilities for these projects. For example, the bill will allow the Minister for Planning to direct the Department of Planning, Housing and Infrastructure and the Development Coordination Authority to prioritise their assessments of priority energy projects, instead of assessing projects strictly in the order they are received.
The bill will also strengthen benefit sharing to regional communities that host renewable energy infrastructure. The NSW Government’s Benefit Sharing Guideline has seen more than $127 million committed to regional communities since it was introduced in November 2024. The bill builds on this success by making changes to the law that will allow benefits to be shared more securely, and ensure they are delivered fairly and consistently across the state.
What’s not changing
Developers will need to continue to meet the existing community consultation and environmental assessment standards required under the NSW planning system. They will also still need to meet public exhibition requirements.
The Department of Planning, Housing and Infrastructure’s approach to assessing proposed projects will not change.
The NSW Benefit Sharing Guideline will remain largely unchanged, except where it may need to be updated to reflect the change to the law.
Why these changes are needed
NSW’s coal-fired power stations are ageing and scheduled to close over the coming decade. Renewable energy is now the lowest cost source of energy and is essential to maintain our energy security.
By prioritising key energy projects, the NSW Government can streamline planning and delivery of new priority electricity infrastructure. This will help reduce bottlenecks and delays as the state transitions to a more reliable and affordable electricity system for homes, schools and business across NSW.
More information
The NSW Government is developing guidance to help industry and communities understand the criteria for priority energy projects. Information will be published when available.