'Top renewables state' NSW swamped with investment bids

NSW has received bids for renewables investment, far exceeding the energy generation it was seeking. (Mick Tsikas/AAP PHOTOS)

Newly crowned the best state for renewable energy investment, NSW is being swamped with bids to build new infrastructure to replace coal power.

Data released on Friday shows the latest tender round of the NSW Energy Infrastructure Roadmap had three-and-a-half times as many bids as targeted.

The government aimed to entice solar, battery and other power generation infrastructure projects totalling a capacity of 950MW but were flooded with bids totalling 3100MW.

The roadmap is the state's 20-year plan to build new renewable energy to replace ageing coal-fired power stations, such as the 2880MW Eraring slated to close in 2025.

A Minster Ellison report recently showed the state was overwhelmingly preferred by the sector's investors.

Asked what state or territory provided a more attractive investment opportunity for their future renewable investments, 60 per cent of local and international investors surveyed pointed to NSW.

Victoria was nominated 12 per cent of the time, followed by Queensland (nine), Tasmania (nine) and Western Australia (eight).

The report quietly released in July also found the proportion of North American respondents who plan to increase investment in Australia (67 per cent) has nearly doubled since 2021. 

European investors are also looking to increase their allocations.

Investors were recognising NSW was getting on with the job of an orderly and ambitious transition of its energy system, Energy Minister Penny Sharpe said on Friday.

"NSW has a strong record of backing renewables, which we know will deliver long-term energy security, apply downward pressure on bills and ensure our state achieves net zero by 2050," she said.

"While there is still work to do, I'm encouraged by the volume of the projects bidding to become part of the energy transition and that investors see NSW as the best place to invest."

Australia aims to generate half of its electricity from renewable sources by 2030.

Renewables generated 37 per cent of electricity in the east coast grid and 35 per cent in the West Australian grid in the past year.

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