Laying the Runway For More Investment
A new report from the NSW Government outlines the state’s largest ever clean energy investment program, a $9.5 billion commitment to accelerate renewable energy across New South Wales. This investment is part of the NSW Electricity Infrastructure Roadmap, a 20-year strategy designed to deliver reliable, affordable, and cleaner energy to homes and businesses while supporting the transition away from fossil fuels.
What the Report Is About
The NSW Government’s $9.5 billion announcement represents the first major commercial rollout of projects under its Electricity Infrastructure Roadmap, a 20-year strategy designed to transition the state from ageing coal-fired generation to renewable energy backed by storage and firming capacity.
The report details the awarding of Long-Term Energy Service Agreements (LTESAs) to three projects:
ACEN Australia’s New England Solar Farm in the New England Renewable Energy Zone, combined with battery storage.
Aquila Clean Energy’s Flyers Creek Wind Farm near Orange.
Enel Green Power’s Limondale Solar Farm near Balranald.
Together, these projects will deliver 1,075 megawatts of capacity, supplying clean electricity to 2.7 million homes, significantly reducing reliance on fossil fuels. Importantly, these projects include grid-scale battery storage to help balance energy supply and demand as coal exits the system.
In addition, the Government confirmed that 10 new renewable energy projects have been granted grid connection approval within the Central-West Orana Renewable Energy Zone (REZ)—Australia’s first designated REZ. These 10 projects are expected to deliver 4.5 gigawatts of additional capacity and will begin operations from 2027, helping to replace over 8 gigawatts of coal-fired capacity by 2035.
These projects benefit from government-backed price certainty mechanisms, reducing commercial risk while keeping projects exposed to market opportunities. This combination of public support and private capital de-risks the rollout of large-scale renewable generation and storage, easing the path toward a lower-cost, low-emission energy future.
Why This Is Good for Environmental Investing
For investors, this report is a clear signal that renewable energy is no longer a fringe opportunity—it’s becoming the backbone of the state’s energy market. Government frameworks like LTESAs and coordinated REZs provide certainty around future revenues and reduce the investment risk typically associated with large-scale energy infrastructure.
The combination of:
Government-backed financial mechanisms,
Grid connection certainty through REZs, and
Private sector capital deployment
creates a strong, stable investment environment. This is not just an environmental story—it’s an economic one. Investors benefit from long-term returns while supporting infrastructure that addresses emissions, energy security, and price stability.
Why Investing in a Low-Carbon Future Makes Sense
Australia is moving from rhetoric to reality when it comes to energy transition. Renewable energy is not just cleaner, it’s increasingly the cheapest new energy source available. With major policy and market support now in place, including these large-scale projects, the barriers to entry are lower than ever.
The economic case for investing in low-carbon infrastructure is backed by global and local trends: corporate net-zero commitments, rising demand for cleaner products, and growing community expectations. Investors who move early are positioning themselves in front of structural growth markets that will define the next decades.
Moreover, these projects contribute to broader economic benefits, including job creation, regional development, and new export industries in clean technology. The shift is not just about replacing coal—it’s about transforming the economy for long-term resilience and competitiveness.
The Bottom Line
The NSW Government’s multi-billion dollar renewables push—featuring three LTESA-backed projects and ten grid-connected developments in the Central-West Orana REZ—proves that the energy transition is well underway. With government policy, private capital, and market forces aligned, the investment case for a low-carbon future has never looked stronger. This is not a theoretical opportunity. It’s a real, growing market with economic, environmental, and financial benefits that investors can capture today.
References
New South Wales Government “Multibillion-dollar renewables investment by private sector to power 2.7 million NSW homes” 8 May 2025 https://www.nsw.gov.au/ministerial-releases/multibillion-dollar-renewables-investment-by-private-sector-to-power-27-million-nsw-homes
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