The Pulse | 18 December 2025

Wired but Tired: NSW’s Big Build Feels some Strain   

This edition of The Pulse examines the commercial opportunities arising across renewable energy infrastructure and the progression of major logistics and transport and the mounting risks associated with these projects. 

Investment in large-scale battery storage is accelerating, with major projects at Eraring, Armidale, and Central Coast regions moving forward to support grid stability [17, 31, 33].

The energy transition faces challenges, including delays and community opposition [4] to key transmission projects such as the Hunter Transmission Project, as well as broader cost increases. 

Concurrently, major infrastructure developments are reshaping the state's logistics backbone, with the Inland Rail network being bolstered by new intermodal hubs [13, 24] and the Port Kembla rezoning promising a new economic powerhouse [15, 23].

Amid this activity, regulatory scrutiny is intensifying, with government-backed frameworks like iCIRT becoming critical for demonstrating builder trustworthiness in a market demanding greater certainty and accountability [32].

NSW's Accelerating Energy Transition: Battery Storage and Grid Modernisation  

NSW is at the forefront of a national energy infrastructure overhaul, with investment flowing into battery energy storage systems (BESS) to support the grid as coal-fired power stations are phased out [19]. 

Origin Energy is committing a further $80 million to expand its Eraring battery, already the southern hemisphere's largest, to help cover evening demand peaks [17, 19]. This is complemented by new state-approved projects, including a $209 million, 150 MW BESS near Armidale capable of powering 60,000 homes [33], and Ark Energy’s Richmond Valley Solar Farm, which will become Australia's largest solar-battery hybrid project [30]. Akaysha Energy is also developing the powerful Waratah Super Battery in NSW though the project has experienced problems with one of its transformers [31]. 

This utility-scale investment is mirrored at the consumer level, where the federal Cheaper Home Batteries Program has driven a surge in residential battery installations, with NSW recording over 43,000 applications in just five months [1, 22].

However, connecting this new capacity remains a critical challenge. 

While major transmission projects like Transgrid’s Project EnergyConnect interconnector, linking NSW with South Australia and Victoria, is now over 90% complete and set to unlock renewable resources in the state's south-west [27, 28], other projects face hurdles. 

The Hunter Transmission Project is experiencing delays and cost blowouts, pushing its completion to late 2029 amid anger from landholders and environmental concerns [4]. These project-level challenges align with broader market concerns due to rising costs for wind and gas plants during 2025 [7].

A recent CSIRO report has also questioned the commercial feasibility of a 100% green energy goal by 2050 [26].

Major Infrastructure and Logistics: Rail and Port Developments Reshaping Supply Chains  

Progress is being made on state-shaping logistics and transport infrastructure, promising to enhance freight efficiency and stimulate regional economies. 

The national Inland Rail network is a key beneficiary, with construction commencing on the $1.62 billion Beveridge Intermodal Precinct in Victoria [13, 14]. This development is commercially significant for NSW, as it will enable double-stacked trains to run between Melbourne and Perth via the critical logistics hub at Parkes, removing an estimated 167,000 truck trips from roads annually [13, 14, 24].

The broader Inland Rail project, a 1,600km freight network, has already created over 8,200 jobs, with several sections in NSW now complete or nearing completion [9].

In the Illawarra region, the rezoning of a 200-hectare site at Port Kembla marks a landmark industrial renewal project [15]. The transformation of the former BlueScope steelworks land into a business park is projected to create an additional 20,000 jobs in commercial, industrial and education sectors [15, 23]. The swift seven-month approval process signals strong government backing for complex, job-creating projects, boosting investor confidence [15, 23].

However, not all major projects are advancing smoothly. The $29 billion Sydney Metro West project has missed deadlines for awarding major contracts adding time and cost pressures to overall delivery. [5].

This contrasts with the progress on other parts of the project, such as the complex seven-week operation to retrieve two 1200-tonne autonomous tunnel boring machines at Westmead [10].

Evolving Market Dynamics: Government Intervention and Regulatory Scrutiny 

The NSW market continues to be shaped by government intervention and a heightened focus on regulatory compliance and transparency. 

A prime example is the federal and state government rescue deal for the Tomago aluminium smelter in the Hunter region [11, 12]. Facing closure beyond 2029 due to soaring electricity costs, the long-term deal will see a Commonwealth-led arrangement underwrite new renewable energy projects to secure the smelter's power supply [12]. In return, owner Rio Tinto will invest $1 billion in plant upgrades, securing over 1,000 jobs and creating significant work for industrial contractors [12]. 

In the residential and commercial building sectors, public scrutiny over build times, pricing, and quality standards continues [32]. In this climate, regulatory frameworks are becoming crucial commercial tools. The government-backed iCIRT rating system is emerging as a key differentiator, providing independent verification of a builder's operational and financial strength [32]. For builders, achieving a high iCIRT rating and maintaining consistent ISO certifications for quality, safety, and environmental management is a vital component of establishing trustworthiness and competitive advantage. 

This trend reflects a market where buyers are prioritising certainty and proven capability, forcing firms to invest in robust systems and transparent processes to mitigate reputational and financial risk [32].

Final Thoughts

The dual engines of the green energy transition and major infrastructure investment continue to create a substantial pipeline of work, particularly in renewable energy, battery storage, and logistics. However, success in this market will be defined by the ability to navigate intricate planning approvals, manage community expectations, and mitigate escalating cost and supply chain pressures. 

Furthermore, the industry is operating under a new paradigm of accountability, where verifiable compliance and transparent governance are essential for maintaining market confidence and a social license to operate. 

1. by Rohan Best, Macquarie University. (15 December 2025). Government boosts its home battery program by $5 billion. But it still has big problems. https://au.news.yahoo.com/government-boosts-home-battery-program-044232748.html
2. PV Magazine | by David Carroll. (15 December 2025). Yanara names Gamuda to deliver massive solar and battery project. https://www.pv-magazine-australia.com/2025/12/15/yanara-names-gamuda-to-deliver-massive-solar-and-battery-project/
3. The Energy | by Ben Potter. (15 December 2025). Nelson review lays ground for live trials of novel contracts. https://theenergy.co/article/nelson-review-live-trial-for-novel-nem-contracts-looms
4. Newcastle Herald | by Phillip O'Neill. (15 December 2025). Power lines: where we're cutting it fine in renewable power transition race. https://www.newcastleherald.com.au/story/9132363/challenges-for-aemos-green-shift-hunter-project-woes/
5. by Matt O'Sullivan. (15 December 2025). Missed deadlines put pressure on Sydney’s Metro West’s opening date. https://www.theage.com.au/national/nsw/missed-deadlines-put-pressure-on-sydney-s-metro-west-s-opening-date-20251208-p5nlx7.html
6. Renew Economy | by Giles Parkinson. (14 December 2025). “It will be the last to close:” Loy Yang owner plans syncon and batteries but is in no hurry to shut down coal plant. https://reneweconomy.com.au/it-will-be-the-last-to-close-loy-yang-owner-plans-syncon-and-batteries-but-is-in-no-hurry-to-shut-down-coal-plant/
7. by Perry Williams. (17 December 2025). Green energy transition faces an upheaval as investment stalls and costs rise. https://www.theaustralian.com.au/business/green-energy-transition-faces-an-upheaval-as-investment-stalls-and-costs-rise/news-story/4b7d762513ee330b5acafc457578a7c8?btr=afe95c902d3ac1e2e874d037109472fe
8. by Christine Middap. (12 December 2025). Top End wind and solar solution to drought fears, says research. https://www.theaustralian.com.au/nation/massive-nt-renewables-push-should-help-power-australia-not-singapore-experts/news-story/0cc287c8cbbd6b1c3d60f6bf187774c9?btr=0f39d5a3778d074d6485f56fc6c9ab9a
9. Inside Construction | by Ashley Grogan. (12 December 2025). Big builds and bold ideas on the Converge Major Projects Stage. https://www.insideconstruction.com.au/news/latest-news/big-builds-and-bold-ideas-on-the-converge-major-projects-stage/
10. Rail Express | by Kayla Walsh. (12 December 2025). Work begins to bring 1200-tonne tunnel boring machines to the surface. https://www.railexpress.com.au/work-begins-to-bring-1200-tonne-tunnel-boring-machines-to-the-surface/
11. The Sydney Morning Herald | by Nick Toscano, Mike Foley. (12 December 2025). PM reveals rescue deal for power-hungry Tomago smelter. https://www.smh.com.au/business/the-economy/pm-reveals-rescue-deal-for-power-hungry-tomago-smelter-20251212-p5nn62.html
12. Cairns Post | by Jessica Wang. (12 December 2025). Prime Minister Anthony Albanese set to announce deal for Tomago smelter. https://www.cairnspost.com.au/news/nsw/prime-minister-anthony-albanese-set-to-announce-deal-for-tomago-smelter/news-story/f89704755bd4ef31135411d3e5a58620?btr=0a826fd881c2035f77fa7b67890446f5
13. by Kayla Walsh. (12 December 2025). Construction begins on Australia’s largest logistics hub. https://www.railexpress.com.au/construction-begins-on-australias-largest-logistics-hub/
14. by Sean Mortell. (12 December 2025). Construction begins on Australia’s largest and most advanced logistics terminal. https://www.fullyloaded.com.au/construction-begins-on-australias-largest-and-most-advanced-logistics-terminal/
15. The Urban Developer | by Patrick Lau. (Date not specified). Port Kembla Rezoning Clears Way for 200ha Business Park. https://www.theurbandeveloper.com/articles/port-kembla-rezoning-delivers-200ha-business-park-for-wollongong
16. Sky News | by Matt Hampson. (11 December 2025). Shadow regional development minister Anne Webster calls renewables plans 'outrageous' amid environmental carnage. https://www.skynews.com.au/business/energy/shadow-regional-development-minister-anne-webster-calls-renewables-plans-outrageous-amid-environmental-carnage/news-story/348b6f34f5ccb087e8d80a58dc48b7be
17. Capital Brief | by Jemeema Hanson. (11 December 2025). Origin announces $80m expansion of battery storage. https://www.capitalbrief.com/briefing/origin-announces-80m-expansion-of-battery-storage-7ed8ead7-856f-45af-a14f-a491432f35c5/
18. by Damion Smy. (11 December 2025). Australian Government wants EV, PHEV owners to start sending power to the grid. https://www.gsherald.com.au/lifestyle/motoring/australian-government-wants-ev-phev-owners-to-start-sending-power-to-the-grid-c-20968420?utm_source=csp&utm_medium=portal&utm_campaign=Streem&token=ykWSKMQn0JfTqjWtdynVobstXSRhP%2F30IUspPt%2FJjMI91ewg2Pkoc58zXmtNe%2Fk1ywvznSZKZHa9KSWqJVhwDw%3D%3D
19. Renew Economy | by Sophie Vorrath. (11 December 2025). Origin to “significantly extend” storage capacity of Australia’s biggest battery, to cover evening demand peak. https://reneweconomy.com.au/origin-to-significantly-extend-storage-capacity-of-australias-biggest-battery-to-cover-evening-demand-peak/
20. EcoGeneration | by Lavinia Hulley. (11 December 2025). Enerven expands role in Australia’s grid transformation. https://www.ecogeneration.com.au/enerven-expands-role-in-australias-grid-transformation/
21. [21]. The Australian | by Judith Sloan. (11 December 2025). Adding more renewables will not fix Australia’s energy price crisis. https://www.theaustralian.com.au/subscribe/news/1/?sourceCode=TAWEB_WRE170_a_GGL&dest=https%3A%2F%2Fwww.theaustralian.com.au%2Fcommentary%2Fadding-more-renewables-will-not-fix-australias-energy-price-crisis%2Fnews-story%2F183d7b0b15969b6a1888f56ee883db62&memtype=anonymous&mode=premium&v21=GROUPA-Segment-1-NOSCORE&V21spcbehaviour=append
22. Energy matters | by Nicole S. (17 December 2025). 2025 Solar, Battery and EV Round Up: Another Record Year. https://www.energymatters.com.au/renewable-news/2025-solar-battery-and-ev-round-up-another-record-year/
23. Property Council of Australia. (Date not specified). Port Kembla Transformation a Blueprint for NSW Industry Renewal. https://www.propertycouncil.com.au/media-releases/port-kembla-transformation-a-blueprint-for-nsw-industry-renewal
24. Prime Mover |. (11 December 2025). Federal investment in intermodal precinct to strengthen freight network: ALC. https://primemovermag.com.au/federal-investment-in-intermodal-precinct-to-strengthen-freight-network-alc/
25. Renew Economy | by Rachel Williamson. (17 December 2025). Gigawatt-scale solar project to help power giant smelter and pave way for coal closure gets planning approval. https://reneweconomy.com.au/gigawatt-scale-solar-project-to-help-power-giant-smelter-and-pave-way-for-coal-closure-gets-planning-approval/
26. The Australian | by Perry Williams. (Date not specified). Australia’s 100pc green energy goal to eliminate emissions is ‘not feasible’, says CSIRO. https://www.theaustralian.com.au/business/australias-100pc-green-energy-goal-to-eliminate-emissions-is-not-feasible-says-csiro/news-story/b03dca441f07263fda5e6ad24e4d1e06?btr=11dfc30bb528628610cfc485a1943682
27. Renew Economy | by Joshua S Hill. (17 December 2025). Australia’s largest energy transmission project is now 90 pct complete. https://reneweconomy.com.au/australias-largest-energy-transmission-project-is-now-90-pct-complete/
28. Utility Magazine. (16 December 2025). EnergyConnect hits 90 percent completion mark. https://utilitymagazine.com.au/energyconnect-hits-90-percent-completion-mark/
29. RepuTex Energy |. (16 December 2025). OUTLOOK: NEM wholesale electricity and LGC price forecast 2025-44 – Q4 Dec 2025. https://www.reputex.com/research-insights/outlook-nem-wholesale-electricity-and-lgc-price-forecast-2025-44-q4-dec-2025/
30. Renew Economy | by Sophie Vorrath. (16 December 2025). Australia’s biggest solar-battery hybrid project wins federal green tick to move to construction. https://reneweconomy.com.au/australias-biggest-solar-battery-hybrid-project-wins-federal-green-tick-to-move-to-construction/
31. Renew Economy | by Giles Parkinson. (16 December 2025). One of Australia’s biggest battery storage developers completes its first project. https://reneweconomy.com.au/one-of-australias-biggest-battery-storage-developers-completes-its-first-project/
32. Homeshelf |. (16 December 2025). What makes a builder trustworthy? Lessons from 25 years in the NSW market. https://www.homeshelf.com.au/blog/what-makes-a-builder-trustworthy-lessons-from-25-years-in-the-nsw-market/800
33. Green Review |. (16 December 2025). New South Wales approves large-scale battery near Armidale. https://greenreview.com.au/energy/new-south-wales-approves-large-scale-battery-near-armidale/