“Irresponsible backflip”: NSW Coalition puts the state’s energy grid at risk

Nature Conservation Council

26 June 2026

The Nature Conservation Council of NSW (NCC) and local advocates are calling on the NSW Coalition to stay the course and not abandon the state’s largest renewable energy zone, halfway through its development.

What happened: The NSW Liberal-National Coalition has decided to scale back the state’s largest renewable energy zone in the New England area by not proceeding with the 500kV transmission line corridor.

Quotes attributed to NCC’s Policy and Advocacy Director, Dr Brad Smith:

“This is an irresponsible backflip by the Liberal Party and puts the NSW energy grid at risk of high prices and blackouts.

“The New England Renewable Energy Zone was designed to supply the cheap, clean energy NSW needs. Without it, our state would be unprepared for the retirement of the Bayswater, Vales Point, and Mt Piper coal-fired power stations.

“These coal-fired power stations are old, unreliable, and fed by biodiversity-killing coal mines.

“If the electricity from these coal power plants isn’t replaced with renewable energy then NSW would be locked into a climate harming, dirty and unreliable energy grid for the foreseeable future.

“The New England REZ is already providing $60 million in community benefits, will create 2,000 ongoing jobs in the region, and a conservation investment strategy is under development.

“There’s no reason to backflip on renewable energy.

“Since 2020, all parties have supported the state’s clean energy roadmap and now is not the time to blow up the state’s biggest energy highway.

“Urban renewable energy zones are a great idea and are already underway. But we need both urban and regional clean energy generation to keep the lights on, especially as power demand is forecast to increase.

“Building the 350-kilometre transmission line will involve some harm to nature, and we need to minimise that. But continuing to mine and burn coal is a far greater threat to nature in NSW.

Emeritus Professor of Chemistry at the University of New England and Project Lead for Electrify Armidale, Trevor Brown, says the New England Renewable Energy Zone is exactly the kind of long-term infrastructure NSW needs.

“We are already facing an energy crisis made worse by climate change. Demand will only increase as homes, transport and industry electrify, and as data centres and AI grow rapidly. Abandoning it now would put upward pressure on bills, slow emissions reduction, and undermine regional jobs and investment.

“From my experience in Armidale, the answer is not to scrap the REZ, but to make sure it is done properly. That means genuine consultation, fair benefits for local communities, careful environmental planning, and support for households already struggling with energy costs,” Brown said.

Notes:

  • The New England Renewable Energy Zone is expected to support more than 6000 construction jobs and 2000 ongoing jobs.

  • The Liberal-National Coalition established the New England REZ in law in 2020, as the state’s largest renewable energy zone, at 8GW.

  • Renewable Energy Zones are a once-in-a-generation opportunity for regional NSW, with millions in community benefit funding already flowing through local councils. The NSW government has announced an initial $60 million community benefit fund for towns hosting the New England Renewable Energy Zone

  • The New England transmission corridor was recently re-routed and will now directly affect only 150 landholders.

/Public Release. View in full here.