NSW Renewable Energy Rollout Hits $1 Billion Under Budget Amid Delays

New South Wales' ambitious renewable energy rollout is significantly under budget, with almost $1 billion spent less than allocated over the past two years. The state's EnergyCo agency had budgeted over $1 billion for 2025-26 but only spent $686 million, and in the previous year, it spent $885 million of a $1.44 billion budget.

The renewable energy zones (REZs) project aims to transform regional areas into power stations by clustering solar, wind farms, and batteries around shared transmission lines. However, the rollout is taking longer than planned, and the state is racing to meet its targets. Ty Christopher, an expert with decades of experience in delivering grid infrastructure in NSW, said there was no single cause for the delay, but rather a cumulative effect.

"I do think they are not proceeding at the pace that would be in the best interests of energy consumers in New South Wales," Professor Christopher said.

An EnergyCo spokesperson attributed the gap between budgeted and actual spending to the timing of project milestones, procurement, and construction activities. The agency is working to develop five renewable energy zones across the state, with the New England zone being the largest, legislated to supply 8GW of power.

"If they haven't been able to lock in the line routes with local communities, they can't spend the money to buy the easements, or start procuring equipment and building the lines," Professor Christopher said.

Despite the challenges, NSW Energy Minister Penny Sharpe's office reported that the amount of large-scale wind and solar operating in NSW had risen more than 80 per cent since the 2023 election. However, the independent NSW Net Zero Commission found that the state is 7.9 gigawatts short of its legislated target of 12GW by 2030.

"There are projects that have been approved," Ms Sharpe said. "The more challenging issue is: are they getting to financial close? We have seen real changes with costs and supply chain changes over the last few years."

The NSW government has introduced legislation to fast-track approvals for priority clean energy projects and established the Energy Security Corporation to help projects reach construction.