The New South Wales (NSW) Government is seeking to accelerate the delivery of renewable energy infrastructure, introducing new legislation designed to streamline approvals for projects considered critical to the state’s energy transition.
The proposed Energy Legislation Amendment (Prioritising Renewable Energy) Bill 2026 would allow the NSW Energy Minister to identify high-priority renewable energy projects within the planning pipeline and move them through an expedited assessment process.
The reforms are aimed at supporting the replacement of retiring coal-fired power stations while ensuring sufficient energy supply for heavy industry, manufacturing and broader economic growth.
Under the proposed framework, priority projects could include renewable generation, battery storage and network infrastructure developments. The NSW Government says the legislation would simplify planning pathways without removing existing environmental, planning or community consultation obligations.
Developers would still be required to comply with all planning and environmental assessment standards, while also demonstrating best-practice engagement with landholders and regional communities hosting projects.
The announcement comes as NSW continues to reshape its electricity system around renewable generation and storage. Renewable energy currently accounts for around 36 per cent of the state’s annual electricity supply, with the State Government noting that during some parts of the summer period, renewables exceeded 80 per cent of the supply mix for the first time.
NSW Minister for Climate Change and Energy, Penny Sharpe, said the reforms were intended to ensure critical projects are not delayed as the state transitions away from coal generation.
“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,” Sharpe said.
“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.”
The legislation would also formalise implementation of the NSW Benefit-Sharing Guideline, which is designed to ensure host communities receive direct benefits from renewable energy developments.
According to the State Government, more than $180 million in community benefits have already been committed since the guideline was introduced in November 2024, alongside Renewable Energy Zone community and employment funds administered by EnergyCo.
NSW Minister for Planning and Public Spaces, Paul Scully, said the state’s planning system must evolve alongside the growing pipeline of energy projects.
“Since 2023, we’ve already reduced assessment times for renewable energy projects by almost 20 per cent while delivering 50 per cent more approvals,” Scully said.
The State Government also confirmed additional reforms are being developed around Independent Planning Commission referral processes, with a focus on reducing unnecessary delays while maintaining community participation in major project decisions.
To read the full NSW Government media release, click here.
