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Renewable energy generation, battery storage and transmission infrastructure projects are key winners under targeted reforms designed to secure faster planning assessment outcomes. The reforms tabled in the NSW Parliament yesterday provide new powers to the Minister for Energy and Minister for Planning and Public Spaces to prioritise key energy projects for the State.
Snapshot
- On 6 May 2026, the NSW Government introduced the Energy Legislation Amendment (Prioritising Renewable Energy) Bill 2026 (Bill), which seeks to streamline planning approval processes for “Priority Energy Projects” (PEPs).
- The key amendment introduced by the Bill is to allow the Energy Minister to declare particular projects or classes of projects as PEPs. PEPs include transmission and distribution infrastructure, renewable energy generation, and energy storage or firming infrastructure (including battery storage, gas-fired firming generation and pumped hydro).
- A PEP declaration will enliven benefits and powers that may be exercised by the NSW Planning or Energy Ministers to prioritise planning assessment processes, including quicker State significant development (SSD) declarations and more flexible requests for Independent Planning Commission (IPC) public hearings.
- While the Bill is a positive step, the impact of the reforms will be highly dependent on relevant Ministers exercising their new powers.
Our NSW Planning Approvals for Clean Energy Projects Pulse Report 2025 found that New South Wales is considered a leading State for clean energy investment potential. However, our report also identified that slower and more costly approval processes compared to other jurisdictions has resulted in a low level of confidence among industry to meet net zero targets.
Significant planning assessment changes proposed
The Bill proposes changes to the Electricity Supply Act 1995 (NSW) (ES Act) and Environmental Planning and Assessment Act 1979 (NSW) (EP&A Act), which would see certain energy infrastructure projects being identified for streamlined planning approval pathways.
Key proposed amendments in the first print of the Bill are discussed below.
Energy Minister can declare “Priority Energy Projects”
The Minister administering the ES Act will be able to declare particular energy projects or classes of energy projects as PEPs.
The types of projects that may be declared to be a PEP are:
- transmission and distribution infrastructure;
- renewable energy generation; and
- energy storage or firming infrastructure, which includes battery storage, gas-fired firming generation or pumped hydro, but does not include storage or firming infrastructure that requires coal-fired or nuclear energy generation.
What constitutes “renewable energy generation” is presently unclear, as the term is not defined in the Bill, ES Act or EP&A Act.
Why it matters: A PEP declaration will enliven other benefits and powers that may be exercised by the Energy or Planning Ministers (see below).
Planning Minister can request IPC public hearings for PEPs
The Planning Minister will be able to request that the IPC hold a public hearing for a PEP.
Why it matters: A public hearing held by the IPC extinguishes merit appeal rights for both proponents and objectors (in contrast to a public meeting, where merit appeals are still available). Limiting the risk of merit appeals reduces both legal and timing risks for proponents.
The power to request a public hearing for renewable energy projects is already available to the Planning Minister (with three SSD wind farms being requested for a public hearing earlier this year). However, legislating the power to request a public hearing for PEPs may be a clear signal of the NSW Government’s intention to use this power more regularly.
Steps for State significant development declaration to be streamlined
Under the EP&A Act, the Planning Minister may declare specified development on specified land to be SSD, but only if the Minister first obtains and makes publicly available advice from the IPC regarding the State or regional planning significance of the development. Residential accommodation is exempt from this requirement.
PEPs will also be exempt from this requirement.
Why it matters: The steps taken by the NSW Government give a clear indication that PEPs have State planning significance. The changes will streamline the SSD pathway for proponents of PEPs, by no longer requiring advice from the IPC prior to making SSD declarations.
Energy Minister can recommend that renewable energy projects be declared State significant infrastructure
Currently, the IPC can recommend to the Planning Minister that development be declared as State significant infrastructure (SSI).
The Energy Minister will now also have the ability to make such a recommendation to the Planning Minister.
Why it matters: This change will provide the NSW Government greater flexibility to declare development to be SSI. The SSI planning pathway confers a number of benefits on projects, including that:
- the Planning Minister is the consent authority;
- Part 3 of the EP&A Act (and specifically the need to comply with zoning requirements) would not apply (this is particularly important for large projects, or projects with linear components which are located over multiple local government areas);
- merit appeal rights are not available; and
- broader post-approval modification powers are available.
The NSW Government had previously contemplated making critical State significant infrastructure (CSSI) declaration for wind and large-scale solar projects with a significant battery energy storage system (e.g. with a capacity of 750MW and useable energy storage capacity of 1,500MWh or more) (see the Wind Energy Guideline and Large-Scale Solar Energy Guideline). However, such declarations are yet to be made.
Legislating a power to declare renewable energy projects as SSI represents an additional commitment by the NSW Government to use streamlined planning pathways to progress project approvals.
While this is a move in the right direction, in order to be declared SSI, proponents will need to secure both a recommendation from the Energy Minister and a declaration from the Planning Minister. It follows that there will need to be a clear Ministerial mandate to make recommendations and utilise the SSI pathway for the benefit of clean energy projects. The pathway for the IPC to recommend that development be declared as SSI remains open.
Planning Minister can set minimum or maximum public contributions for planning agreements
The Planning Minister will have the power to determine or direct other planning authorities (such as local councils and the IPC) by setting a minimum or maximum amount of land to be dedicated, monetary contributions to be made, or other material public benefits to be provided in a voluntary planning agreement (VPA) under the EP&A Act. The Planning Minister will also be given power to direct the method for determining the extent of such a contribution.
Why it matters: The setting of minimum or maximum contributions has the potential to streamline the negotiation of a VPA for developers. The setting of maximum contributions could reduce the costs associated with public contributions, but there is also a risk that costs may increase where minimum contributions are set.
Planning Minister can direct the IPC in relation to PEPs
The Planning Minister will be given a new power to direct the IPC to exercise its functions in relation to SSD, SSI, and CSSI projects, including PEPs.
Why it matters: The Planning Minister will be able to direct the IPC to exercise its functions in relation to SSD, SSI, and CSSI projects, including PEPs. The IPC’s functions include acting as a consent authority for a development application, providing advice to the Planning Minister, or holding a public hearing on a development application.
Reforms require NSW Parliament approval
As at this date, the Bill is subject to debate and yet to pass the NSW Parliament.
If passed in its current form, the reforms discussed above will provide an improved platform for the Energy and Planning Ministers to take meaningful steps to support the State’s transition to net zero.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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