The New South Wales government has introduced a new law to speed up the delivery for high-priority renewable energy projects, ensuring the state’s power grid remains stable as coal-fired power stations retire.
The Energy Legislation Amendment (Prioritising Renewable Energy) Bill 2026 grants the NSW Energy Minister new powers to hand-pick the most critical generation, storage, and network projects in the planning pipeline for streamlined approval.
The move is designed to shore up energy security for large industrial users, such as the Tomago aluminium smelter, and maintain affordability for households.
Despite the fast-track nature of the reforms, the government has moved to reassure regional communities that environmental standards will not be compromised.
Developers must still navigate all existing planning and consultation obligations. More importantly, priority status will be granted only to projects that demonstrate best practices in their dealings with landholders and local residents.
“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,” said Minister for Climate Change and Energy Penny Sharpe.
The bill will also support the effective and consistent implementation of the NSW Benefit-Sharing Guideline. Since its introduction in late 2024, the scheme has already seen over AU$180 million committed to regional councils and communities hosting renewable infrastructure.
Further reforms are also in development to improve the way projects are referred to the Independent Planning Commission for determination, to ensure NSW residents continue to have a strong voice while avoiding unnecessary delays to energy projects that are critical to NSW.
With renewables currently providing roughly 36 per cent of the state’s electricity, peaking at over 80 per cent during some summer intervals, the new law is seen as a vital gear change in NSW’s once-in-a-century energy transformation.