The Pulse | 17 September 2026

Who Connects, Who Builds: NSW Takes Charge of Grid Access and Development Consents

This week's reporting turns on the terms of access: who may connect to the electricity network, what they pay for it, and which authority decides. 

The Electricity Infrastructure Investment Amendment Bill 2026 was agreed at second reading, considered in detail and read a third time in the Legislative Assembly on 15 September 2026, and its status is now recorded as in the Legislative Council, to be reported [11]; the Bill would let the Minister declare an access scheme by order in the Gazette over infrastructure connecting at 5 megawatts or above, and would commence on assent rather than by proclamation [1]; the Legislation Review Committee made no comment on the Bill under section 8A of the Legislation Review Act 1987 and recorded the Minister with carriage putting the reforms in terms of large new energy users meeting the cost of what they require [10]; and Transgrid released modelling putting data centre peak demand at around 3.5 gigawatts by 2035, twice what the Australian Energy Market Operator (AEMO) carries in its 2026 step change scenario [3]. This newsletter reported the Bill's introduction in its edition of 3 September 2026.

On approvals, the pattern reported was one of decisions moving up a level. Northern Beaches Council submitted a draft Brookvale precinct planning proposal for gateway approval allowing buildings of 25 storeys and taking the suburb to close to 3,000 homes [9]; the Northern Beaches Advocate recorded 16 projects designated as State Significant Development Applications across the area so far this year [6]; and the NSW Planning Portal opened an application for seniors housing on a Mosman site already taken down two other pathways [4].

The Electricity Bill Clears the Assembly and Goes to the Council

The Parliament of NSW records that the Electricity Infrastructure Investment Amendment Bill 2026, introduced by Jihad Dib MP on 5 August 2026, was agreed at second reading, considered in detail and read a third time in the Legislative Assembly on 15 September 2026, with one Government amendment agreed, and that its status is in the Legislative Council, to be reported [11]. The explanatory note states the Bill's object as amending the Electricity Infrastructure Investment Act 2020 so that the Minister may create an access scheme authorising or prohibiting access to, and use of, large load infrastructure, and so that the persons who are network operators for that Act are prescribed [1]. The Legislation Review Committee, examining the Bill, made no comment in respect of the issues set out in section 8A of the Legislation Review Act 1987 [10].

Under the Bill a declaration is made by the Minister through an order published in the Gazette, and may cover the whole of the State or only part of it, where that area is proposed to contain large load infrastructure [1]. A scheme may be declared over ground already carrying another access scheme, the declaration may name the network infrastructure or the area it reaches, and the Minister must satisfy procedural requirements before declaring one [1]. The Legislation Review Committee records the threshold as a network connection able to carry 5 megawatts instantaneously, or a higher figure set by regulation [10]. Clause 2 provides that the Act commences on the date of assent, so no proclamation would be needed to bring it into force [1].

Three further limbs carry consequences beyond the connecting party. The Bill sets out what the consumer trustee weighs in fixing the fees participants pay the scheme financial vehicle, and provides that for a large load infrastructure scheme the trustee is not to weigh the maximising of financial value for NSW electricity customers [1]. The definition of network operator is widened to reach not only a person who carries out network infrastructure activities but one who organises, arranges or causes them to be carried out [1]. An infrastructure planner is given protected person status, so as not to be personally liable in specified circumstances connected with administering a scheme, and regulations may modify or disapply provisions of the National Electricity Rules, and of the National Electricity (NSW) Law, both for how access schemes operate and for the connection of large load infrastructure to network infrastructure [1].

Transgrid Doubles Its Data Centre Forecast as Canberra Weighs Renewable Offsets

The Legislation Review Committee records Mr Dib telling the House at the second reading that the drafting term is wider than the target, the intent being to "manage the impact of data centres, rather than other large energy users like hospitals or train networks", and describing the reforms as helping to "ensure that large new energy users contribute appropriately to the cost of the infrastructure they require" [10]. The Australian reports that Transgrid has put data centre electricity demand to its own modelling, which returns consumption at twice the level of the forecast most widely relied on from the market operator [3]. The analysis, completed by Baringa for Transgrid, Ausgrid, Endeavour Energy and Evoenergy, puts data centre peak demand at around 3.5 gigawatts by 2035, while AEMO's own high growth sensitivity shows annual consumption about 55 per cent above its step change forecast [3].

The Australian reports that further transmission build across Sydney could release another 2 gigawatts of capacity, and that Transgrid has said the cost must fall on the data centre proponent rather than on households [3]. Developers have lodged requests with Transgrid for volumes amounting to twice the peak demand of the entire state. The demand arrives as Transgrid enters the regulatory process for its next revenue determination covering 2028 to 2033, and after the Australian Energy Regulator rejected its bid to recover $1.2 billion from consumers following cost growth on Project EnergyConnect [3]. This newsletter has reported the grid access question in its editions of 20 August, 3 September and 10 September 2026.

The publication reports that AEMO now expects NSW to breach its reliability benchmark from 2030 to 2031, three years earlier than the 2033 to 2034 date given a year ago, and puts data centre consumption across the national electricity market on a path from about 5 terawatt hours today to 34 terawatt hours by 2035 to 2036 [3]. It also reports a move by national cabinet toward laws that would oblige a data centre developer to commission new renewable generation covering the whole of what the facility consumes, with Queensland and the Northern Territory having obtained a carve-out [3]. EnergyAustralia chief executive Mark Collette said of the proposed rules that "I think you've got to be practical", and that a facility starting at 50 or 100 megawatts represents "less variation than you get with weather on a given day" [3].

Brookvale Heads to Gateway at 25 Storeys as a Mosman Site Tries a Third Pathway

WAtoday reports that buildings could reach 25 storeys under the draft Brookvale precinct planning proposal put forward by Northern Beaches Council, which would lift the suburb's earlier housing targets to close to 3,000 homes, near enough to twice the previous figure [9]. The revised plan would enable about 2,900 homes across the next 15 years, of which about 5 to 10 per cent would be affordable housing, alongside a new town centre, employment space, parks and community facilities. Northern Beaches Mayor Sue Heins said the proposal "provides a clear plan to accommodate future growth while preserving the creativity and employment strengths that make the precinct unique" [9].

WAtoday reports the proposal takes in the Warringah Mall site, where Scentre Group has sought a town centre and 1,500 units in buildings of up to 39 storeys, and that the council put to the state government that about 850 homes in towers no taller than 25 storeys should be built around the mall [9]. A contributions levy under the draft plan would pay for road upgrades and public domain infrastructure, and the additional height and floor space on key sites would be unlocked only by a development delivering the public benefits identified. The council has submitted the proposal to the Department for gateway approval, which would allow public exhibition next year [9].

The Northern Beaches Advocate reports that the Minister for Planning and Public Spaces, Paul Scully, has this year given 16 Northern Beaches projects State Significant Development Application status, eight of them gazetted in July 2026 [6]. It records a proposal lodged in August 2026 over the former E J Shaw and Son site at Mona Vale seeking rezoning to R3 medium density residential and a height limit of 22 metres, producing a ten level building of 118 dwellings by treating Elimatta Road as ground level with three further storeys falling to Pittwater Road. Under the rules governing these applications it is not for the council to decide whether the building may proceed [6].

The Weekly Source reports that the NSW Planning Portal has opened a State Significant Development application covering seniors housing of eight storeys at Rangers Avenue and Brierley Street, Mosman, on a consolidated site of 5,638 square metres [4]. The application sits at the Secretary's environmental assessment requirements stage, with no dwelling numbers or detailed plans yet published, and the same site has previously been pursued through a local development application, through the Housing Delivery Authority, and through the State Significant in-fill affordable housing pathway [4].

Road Designs Land at Spring Farm and Victoria Pass as Prefab Assurance Draws Warning

Felix reports the unveiling of the proposed design for Spring Farm Parkway Stage 2, a three kilometre four lane divided road with an 80 kilometre per hour limit, backed by $15 million from the Australian and NSW Governments to carry the planning stage, with delivery funding left to future Budget processes [2]. The design carries new bridges over the Main Southern Railway and the Glenlee Rail Line, two signalised intersections, and a further east to west route running south of Narellan Road. The community is being invited to comment on the design and on the Review of Environmental Factors [2].

Hills to Hawkesbury Community News reports a combined $200 million commitment to rebuild Mitchell's Causeway at Victoria Pass on the Great Western Highway and to add an eastbound climbing lane, with $100 million from the Australian Government matching $100 million allocated in the 2026 to 2027 NSW State Budget [7]. The route was closed in March 2026 after cracking and movement damaged it, and an alliance contract was let to Seymour Whyte in June for a replacement road deck carried over the old causeway on piles anchored into bedrock, with upwards of 150 workers inducted and major reconstruction now running. The highway is expected to reopen in the second quarter of 2027 [7].

Built Offsite published an extended interview with the former NSW Building Commissioner David Chandler AM, who said the enthusiasm now gathering around prefabrication in Australia is moving faster than the assurance, compliance and procurement arrangements that stand behind an owner's protection [5]. Chandler said his concern begins where a building leaves the factory: "What I'm seeing is that offsite hasn't really quite embraced the fact that it doesn't stop at the factory gate". He described bringing offsite work into onsite delivery as "a very, very immature space", pointed to installations where waterproofing and termite protection had been missed, and said his central worry is that "nobody owns the whole" [5]. This newsletter reported prefabAUS setting its year four roadmap priorities on 10 September 2026.

On revenue, Insurance News reports that NSW Treasury officials appearing before a parliamentary committee inquiry into emergency services funding reform set out trade offs across five property based levy options, with concerns raised about cost cliffs between property tiers and the effect on commercial and industrial properties [8]. Treasury deputy secretary Alex Heath said of capacity to pay that "we feel quite comfortable that, in where we are today, the unimproved land value is the best proxy that we have" [8].

Final Thoughts

Two patterns organise the week's coverage. The first is the pricing and rationing of network access. The Bill now before the Legislative Council would let the Minister declare an access scheme by order in the Gazette over infrastructure connecting at 5 megawatts or above, would widen who counts as a network operator, and would direct the consumer trustee away from maximising value for NSW electricity customers when it sets the fees such a scheme carries [1, 10, 11]; Transgrid's modelling put data centre peak demand at roughly double the market operator's step change figure, and its stated position is that proponents rather than households should meet the cost of expansion [3]. The composition of the week's energy reporting was consistent with demand side management and cost allocation rather than generation.

The second is the movement of planning decisions up a level of government. Sixteen Northern Beaches projects were designated State Significant this year, on applications the council cannot determine [6]; a Brookvale proposal for close to 3,000 homes sits with the Department for gateway approval [9]; and a Mosman site was reported moving to a third state pathway after two earlier routes [4]. The reporting on prefabrication and on emergency services funding was directed at the systems sitting behind delivery, procurement assurance in the first case and levy design in the second [5, 8].

1.  Parliament of NSW (5 August 2026). Electricity Infrastructure Investment Amendment Bill 2026, first print and explanatory note. https://files.parliament.nsw.gov.au/fileapi/ParlFiles/GetArtifact?serverRelativeUrl=%2Fbill%2Ffiles%2F18938%2FFirst%20Print.pdf

2.  Felix (10 September 2026). Proposed design for Spring Farm Parkway Stage 2 unveiled. https://felix.net/project-news/proposed-design-for-spring-farm-parkway-stage-2-unveiled

3.  The Australian (10 September 2026). Transgrid warns data centre power demand will be double official forecast. https://www.theaustralian.com.au/business/technology/data-centre-demand-double-forecasts-industry-tells-aemo/news-story/6af40174a8c1fab1dda1526e4a6a5eae

4.  The Weekly Source (10 September 2026). Developer tries a third planning pathway, seniors housing. https://theweeklysource.com.au/arissa-group-tries-a-third-planning-pathway-in-mosman-sydney-seniors-housing

5.  Built Offsite (11 September 2026). Chandler warns Australia's prefab push is outrunning its assurance systems. https://builtoffsite.com.au/news/chandler-warns-australias-prefab-push-is-outrunning-its-assurance-systems  

6.  Northern Beaches Advocate (13 September 2026). Development gold rush accelerates. https://northernbeachesadvocate.com.au/2026/09/14/development-gold-rush-accelerates

7.  Hills to Hawkesbury Community News (14 September 2026). $200 Million Boost to Rebuild Great Western Highway. https://hillstohawkesbury.com.au/great-western-highway-upgrade-2027 

8.  Insurance News (14 September 2026). Treasury sees complexity trade-off in ESL reforms. https://www.insurancenews.com.au/regulatory-government/treasury-sees-complexity-trade-off-in-esl-reforms

9.  WAtoday (14 September 2026). The plan to transform the 'heart' of the northern beaches. https://www.watoday.com.au/national/nsw/3000-homes-25-storey-towers-the-plan-to-transform-the-heart-of-the-northern-beaches-20260914-p60x3y.html

10.  Legislation Review Committee, Parliament of NSW (15 September 2026). Legislation Review Digest No. 50/58. https://files.parliament.nsw.gov.au/fileapi/ParlFiles/GetArtifact?serverRelativeUrl=%2Fladocs%2Fdigests%2F737%2FLegislation%20Review%20Digest%20-%20No.%2050%20of%2058%20-%2015%20September%202026.pdf