The New South Wales (NSW) government in Australia has endorsed 16 projects worth a collective AU$34.4 billion (US$22.1 billion) through its newly established Investment Delivery Authority (IDA), with renewable energy and energy security initiatives dominating the inaugural funding round.
This marks the first tranche of approvals under the authority’s streamlined assessment process, designed to accelerate private-sector investment across the state’s energy transition.
A total of 14 energy projects valued at AU$34 billion secured endorsement through the IDA’s expression of interest process, alongside two hotel developments worth AU$482 million.
The energy portfolio spans pumped hydro storage, battery storage systems, wind farms, solar PV power plants, and gas infrastructure, distributed across multiple renewable energy zones (REZ) including the South West REZ and Central West Orana REZ.
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The IDA’s establishment reflects growing recognition that coordination challenges across government agencies have historically delayed major infrastructure projects.
New South Wales Energy Minister Penny Sharpe emphasised the authority’s role in accelerating the NSW Electricity Roadmap, stating the endorsed projects would deliver “more reliable and affordable power for NSW, and more jobs and investment right across the state, particularly in regional NSW.”
You can find a full breakdown of successful projects below:
| Proponent | Project Type | Location |
|---|---|---|
| AGL | Hunter energy hub | Muswellbrook Shire Council |
| Burragorang Valley Green Energy Pty Ltd | Hydro storage project | Wollondilly Shire Council |
| Castle Group | Battery storage project | Liverpool City Council |
| Castle Group | Battery storage project | Penrith City Council |
| Dinawan Energy Hub Pty Ltd (Spark Renewables) | Wind plant | Murrumbidgee Council / Edward River Council (South West REZ) |
| Dinawan Energy Hub Pty Ltd (Spark Renewables) | Solar plant | Murrumbidgee Council (South West REZ) |
| Lake Lyell Project Pty Ltd | Pumped hydro energy storage project | Lithgow City Council |
| Lake Victoria Wind Farm Pty Ltd (WestWind Energy) | Wind plant & BESS | Wentworth Shire Council |
| Neoen Australia Pty Ltd | Great Western Battery | Lithgow City Council |
| Paro Planning Pty Ltd | Hotel | City of Sydney |
| Piambong Wind Farm Pty Ltd | Wind plant | Mid-Western Regional Council (Central West Orana REZ) |
| Port of Newcastle Operations Pty Ltd | Clean energy precinct | Newcastle |
| Pottinger Renewables Pty Ltd | Wind and battery project | Edward River Council / Hay Shire Council (South West REZ) |
| Santos Ltd and Hunter Gas Pipeline Pty Ltd | Gas project | Narrabri Shire Council |
| Vuez Eco Resort Pty Ltd | Hotel | Snowy Monaro Regional Council |
| Yanco Delta WF Project Pty Ltd (Origin Energy subsidiary) | Wind plant | Murrumbidgee Council / Edward River Council (South West REZ) |
Addressing capacity shortfalls through strategic investment
The timing of the IDA’s first approvals aligns with the state’s broader efforts to address looming capacity constraints.
The state previously directed the ASL to deliver a firming tender for the 2033-34 capacity shortfall, highlighting the urgency of bringing new generation and storage capacity online. The IDA endorsed projects include several large-scale battery storage developments, with Castle Group securing approval for battery projects in both Liverpool City Council and Penrith City Council areas.
Notable among the approved developments is Neoen Australia’s Great Western Battery project in Lithgow City Council, adding to the company’s established presence in the Australian energy storage market.
The Lake Lyell pumped hydro energy storage project, also located in Lithgow, represents another significant addition to NSW’s long-duration storage pipeline. These developments build on the state’s recent success in contracting six battery storage projects totalling 1.17GW/12GWh through its biggest long-duration energy storage tender.
The approved wind farm developments span multiple councils, with Spark Renewables’ Dinawan Energy Hub securing endorsement for both wind and solar components across Murrumbidgee Council and Edward River Council areas within the South West REZ.
Origin Energy subsidiary Yanco Delta WF Project also received approval for wind farm development in the same renewable energy zone, while WestWind Energy’s Lake Victoria Wind Farm will incorporate battery energy storage alongside wind generation in Wentworth Shire Council.
Streamlined coordination amid market evolution
The IDA’s concierge service approach addresses systemic coordination issues that have historically impeded major project delivery.
NSW Treasurer Daniel Mookhey noted that insights from the first assessment round revealed “major investment projects are often held back by system-wide issues, highlighting the need for a coordinated, whole-of-government approach to unlock investment.”
This coordination challenge has become increasingly critical as Australia’s National Electricity Market (NEM) undergoes rapid transformation. A recent interview with Eku Energy on ESN Premium, noted that market design must evolve to accommodate the growing role of energy storage within the grid’s operational framework, making streamlined project delivery essential for maintaining system reliability.
The IDA’s endorsement does not constitute project approval, with all developments still requiring full merit-based assessments and compliance with state and commonwealth legislation.
However, endorsed projects will receive dedicated government support through specialised planning assessment teams and a multi-agency investment taskforce, potentially reducing development timelines for critical infrastructure.
The authority’s initial focus on renewable energy, data centres, and tourism infrastructure reflects NSW’s strategic priorities for economic diversification and energy security.
Data centre proposals submitted during the first round are undergoing separate evaluation, recognising the sector’s significant energy, water, and infrastructure coordination requirements.
The Energy Storage Summit Australia 2026 will be returning to Sydney on 18-19 March. It features keynote speeches and panel discussions on topics such as the Capacity Investment Scheme, long-duration energy storage, and BESS revenue streams. ESN Premium subscribers receive an exclusive discount on ticket prices.
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