NSW parliament is debating a bill to slow rising electricity costs as the state commits to powering the nation's east coast clean energy grid in an almost-$8 billion deal with the federal government.
The multi-billion investment announcement comes on the same day NSW parliament reconvened to debate legislation designed to facilitate the federal government's national energy plan to curb runaway power bills.
The federal government passed its national energy plan last week, introducing a cap on gas prices at $12 a gigajoule, a mandatory code of conduct for the gas market and the roll out of power bill support for welfare recipients.
Outlining the energy relief bill's clauses hurriedly in an ad-hoc chamber in parliament while it undergoes a $22 million upgrade, Premier Dominic Perrottet said the bill would be in effect until June 30, 2024, capping coal prices at $125 a tonne
"It is my intention to declare a coal price emergency once this bill is passed, allowing the (energy) minister to issue directions cutting the price of coal sold in the domestic market's electricity generation in NSW at $125 per tonne effective from this week until 30 June 2024," he told parliament on Wednesday.
"Without this intervention, electricity prices are forecast to increase up to 56 per cent over the 2022-23 and 2023 24 financial years as outlined in the Commonwealth budget."
The savings generated on the back of this bill would save an average of $240 a year for each NSW household, he said.
However, there would be temporary ramifications for the coal sector.
"Our solution ensures generators are supported with the Commonwealth and NSW to jointly provide financial assistance to coal-fired power stations that purchase coal under existing contracts at prices that exceed the price cap," Mr Perrottet said.
"This bill offers decisive action in response to a unique and isolated challenge".
The premier said NSW would lead the country's transition to renewable energy, pointing to the $7.8 billion in joint federal and state funding for critical transmission and renewable energy zones projects that would plug Snowy 2.0 into the grid.
The bill will be read in the upper house later on Wednesday, after the opposition supported its passage.
Nearly $5 billion will be given from the Albanese government's Rewiring the Nation Plan for the agreement which will unlock eight sites, including the Humelink, Sydney Ring-Hunter Transmission Project, Central-West Orana REZ, VNI West, New England REZ and Hunter-Central Coast REZ.
Mr Albanese said his administration had "worked hand in glove with the states and territories to shield Australian households and businesses from the worst impacts of the energy crisis caused by Russia's illegal invasion of Ukraine".
"Support for critical transmission infrastructure like Sydney Ring, VNI West and HumeLink, to get across the line, will help transform Australia into a renewable energy superpower," he said.
According to Mr Perrottet, the joint funding will garner another $32 billion in private investment for regional energy infrastructure by 2030.
Federal Energy Minister Chris Bowen said the forward-looking transition to renewables would not only be a boon for business but also families struggling with the rising cost of living.
"The best way to lower energy prices for Australian households and businesses is by increasing firmed renewables across our grid," he said.
"It is the cheapest and most abundant form of energy across our vast continent."
He noted the announcement ensures alternative forms of energy beyond fossil fuels, "can be supplied from wherever the wind is blowing and the sun is shining, to where it's used by households and industry".
© AAP 2022