The NSW State Government has announced plans to give Ministers new powers to prioritise and streamline critical renewable energy infrastructure projects, as part of legislation introduced into the State’s Lower House.
On 6 May 2026, the Energy Legislation Amendment (Prioritising Renewable Energy) Bill 2026 (NSW) (Bill) was introduced, proposing amendments to the Electricity Supply Act 1995 (NSW) (ES Act) and the Environmental Planning and Assessment 1979 (NSW) (EP&A Act) which are intended to streamline and accelerate approvals for renewable energy projects.
Amendments to the ES Act
The Bill proposes to insert a new section into the ES Act which would allow the Energy Minister to declare a particular project or class of projects to be a ‘priority energy project’, where ‘energy project’ includes transmission/distribution infrastructure, renewable energy generation, and energy storage or firming infrastructure (which does not include any infrastructure that requires coal-fired energy generation or nuclear energy generation).
Amendments to the EP&A Act
The Bill’s proposed amendments to the EP&A Act in relation to streamlining approvals for these types of projects largely rely on the concept of a ‘priority energy project’ as created by the amendments to the ES Act. In respect of such projects, the amendments include:
- giving the Independent Planning Commission express powers to hold a public hearing about a priority energy project, at the request of the Minister;
- extending the Minister’s exemption to obtain advice from the Independent Planning Commission before declaring a development as State significant development, currently limited to development that includes residential accommodation, to development that includes a priority energy project;
- expressly providing that development that includes a priority energy project may be declared by the Planning Minister as State significant development;
- extending powers to the Energy Minister, which currently apply to the Independent Planning Commission and Infrastructure NSW, to make recommendations to the Planning Minister in respect of declarations relating to State significant infrastructure; and
- enabling Ministerial directions under section 9.1 of the EP&A Act to extend to State significant development, State significant infrastructure or critical State significant infrastructure, and priority energy projects.
In addition to facilitating renewable energy projects (and particularly ‘priority energy projects’), it is notable that the State Government is also using the Bill as an opportunity to tweak the law around voluntary planning agreements, including providing the Planning Minister with power to determine or direct the amount and method of calculating public benefits or contributions. This could reduce the complexity of negotiations and delays associated with infrastructure contributions, including for renewable energy projects.
The Bill, if passed, will provide greater opportunity for prospective large renewable energy projects to progress through the State’s planning and electricity regulation systems in an efficient manner, by giving Ministers the ability to ‘call in’ projects of highest priority as State significant in order to streamline and accelerate approvals.
The Bill is currently awaiting Second Reading debate.
We are closely monitoring the progress of the Bill and can assist proponents in navigating the evolving planning and approvals framework for renewable energy projects in NSW.