The New South Wales government has signed a $1.9 billion renewable energy contract that is set to slash the state’s public transport power bill by $130 million over the next seven years.
In a first for the state, the government has consolidated the electricity requirements for the entire transport network, including trains, metro, buses, and light rail, into a single supply deal.
By leveraging this combined buying power, the government has driven down costs while fast-tracking the state’s transition to net-zero emissions.
The contract was awarded to Snowy Energy, the retail arm of Snowy Hydro, following a rigorous two-year tender process. The deal is expected to prevent over 800,000 tonnes of carbon dioxide from entering the atmosphere annually, moving Transport for NSW closer to its goal of a 65 per cent reduction in operational emissions by 2030.
Minister for Transport John Graham noted that the savings would be tipped directly back into frontline services at a time when many residents are ditching their cars due to surging petrol prices.
“Transport uses almost as much electricity as all other government agencies in NSW combined,” Graham said.
“It’s important we use our buying power responsibly and get the best possible deal for taxpayers, which is what we have achieved.”
The shift comes as the transport sector is tipped to become Australia’s largest source of emissions by 2030.
Snowy Hydro CEO Dennis Barnes highlighted that the energy would be sourced from NSW-based projects, such as the Uungula Wind Farm, to meet the network’s massive demand.
“Transport for NSW is a large energy user, and they are leading the way in their efforts to reduce emissions,” the CEO said.
“We were able to provide a tailored approach that meets their unique needs and secures long-term renewable matched energy from sources such as the Uungula Wind Farm right here in NSW.”
Beyond large-scale procurement, Transport for NSW Secretary Josh Murray pointed to local initiatives already reducing grid reliance.
“We’ve been able to deliver significant reductions in energy demand through initiatives like rooftop solar at the new Sydney Trains’ Mortdale maintenance facility,” Murray said, noting that the site’s 2,000 solar panels alone save 870 tonnes of carbon each year.