NSW’s renewable boom a possible blueprint for Australia’s clean energy future

NSW is pushing ahead with its renewable energy transition at speed with about 100 projects securing approval. Many are either under construction or close to feeding power into the grid | Full list and map of projects.

Summerville Solar Farm, a $312m state significant investment, located 57km southwest of Lismore, will have a generating capacity of 90 megawatts. Picture: Neil Fenelon

NSW is outpacing rival states in its shift from coal to renewables, executing its energy transition with a speed and co-ordination unmatched elsewhere, but looming challenges threaten to test the resilience of its ambitious agenda.

The state is targeting a 70 per cent reduction in emissions by 2035 — one of the most aggressive climate goals in Australia — and its success hinges largely on how quickly it can replace fossil fuels with clean, reliable alternatives.

NSW already hosts 45 operating wind and solar farms, but a new wave of development is gathering pace. Close to 100 projects have secured planning approvals and while not all of these will materialise, many are either already under construction or nearing the point of feeding power into the grid.

But to deliver the scale required, NSW has designated five Renewable Energy Zones (REZs) — co-ordinated regions where wind, solar and storage projects are integrated with new transmission infrastructure. These zones are central to the government’s strategy, enabling larger, more efficient projects to connect to the grid while minimising the social and environmental impact on communities.

Early indicators suggest the plan is working.

In the past six months alone, developers have committed to more than 11 gigawatts of new renewable generation and 2.2 gigawatts of long-duration storage in NSW.

The Clean Energy Finance Corporation estimates private investment in the state’s electricity sector now exceeds that of Victoria and Queensland combined during the same period.

NSW Energy Minister Penny Sharpe says the results illustrate the progress the state is making.

“There is a lot of work to do but the Minns Labor government is cracking on with delivering the roadmap. NSW is lucky that we have a bipartisan plan to replace ageing coal-fired power stations, and we are making progress delivering it,” Ms Sharpe said.

The most advanced of the REZs is the Central-West Orana zone, which is expected to unlock 3 gigawatts of new capacity by 2026.

Transmission approvals for its critical 330-kilovolt line were finalised in May, with early construction expected to commence within weeks.

The South West REZ — the second most advanced — is also gaining momentum. It has attracted multibillion-dollar proposals from global investors, including major wind, solar and storage projects that have secured rare transmission access guarantees. That access offers developers a crucial level of certainty that they will be able to connect their projects to the grid once complete.

Among the largest is the Yanco Delta wind project, which plans to install 208 turbines, each reaching up to 175 metres in height. With grid access secured, the project has moved closer to financial close, symbolising the broader shift in investor confidence across the state’s renewable pipeline.

Yet progress is not without friction.

NSW is now the national test case for whether large-scale energy transition can be delivered with sustained community backing. While Queensland and Victoria are rolling out their own REZ plans, the model pioneered in NSW is being closely watched — and emulated — by energy market planners and regulators.

The closure of coal-fired power stations will bring economic upheaval to traditional mining regions, while the influx of renewable infrastructure into rural areas has sparked new waves of opposition.

While governments promote the economic upside — including thousands of jobs and long-term investment — some regional communities are expressing concern over landscape changes, property values, and the adequacy of compensation.

The sheer volume of planning applications for many is daunting. Many of these REZs have attached dozens of applications – creating the impression to many that the region will be overrun with large-scale renewable generation projects.

The South West REZ, by contrast, has been relatively free of resistance, due in part to its sparse population. That low-density footprint has made it particularly attractive to developers and policymakers alike.

The same cannot be said of the New England REZ, which is shaping as the most politically fraught. Federal MP and former deputy prime minister Barnaby Joyce has vowed to oppose the zone’s development, arguing that large-scale wind and transmission projects will irreversibly alter the character of the region.

The Minns government has committed to working closely with local communities, but time is not on its side. A lack of replacement capacity in recent years forced the government to extend the life of Origin Energy’s Eraring power station — the largest in the country — by at least two years.

Other coal generators, including AGL Energy’s Bayswater facility, are also scheduled to close by the early 2030s. With many approaching the end of their technical life, and operators under mounting pressure from investors and regulators to decarbonise, the prospect of further extensions appears slim.

NSW’s success will ultimately depend on its ability to balance speed with stability — and to maintain investor confidence while navigating the political and social tensions that inevitably accompany a transformation of this scale.

If the state delivers, it won’t just keep the lights on — it could become the blueprint for Australia’s clean energy future.

Originally published as NSW’s renewable boom a possible blueprint for Australia’s clean energy future