The Pulse | 19 February 2026

Power, Permits and Pressure Points:
Where NSW construction is accelerating and tightening

Renewable energy investment continues to expand, supported by a $15 million joint funding initiative aimed at building the skilled workforce required for large-scale projects across the state [7, 12, 16, 18]. In public infrastructure, long-delayed delivery milestones are materialising, with construction commencing on the billion-dollar Rouse Hill Hospital [10, 11, 13].

At the same time, structural pressures are intensifying. Updated projections indicate a housing shortfall of 156,000 dwellings by 2029, with potential revenue implications estimated at $6.4 billion and ongoing constraints linked to planning settings and infrastructure capacity [15, 14]. Site-level enforcement remains active, including a recent stop-work order issued at a Botany apartment development following excavation-related damage [9].

The regulatory environment is also shifting. Proposed digital workplace legislation would introduce new employer safety duties and expand union access to digital systems, prompting industry concern about compliance exposure and operational impact [3, 5].

Together, these developments reflect a sector moving forward on major investment fronts while absorbing tightening oversight, delivery constraints, and policy change.

Renewable Energy Build-Out Expands as Workforce Planning Scales Up 

NSW’s energy transition continues to translate into active project delivery and long-term infrastructure planning. State-backed contracts have been awarded for the 158MW Armidale East and 100MW Ebor battery projects in the New England region, both required to be operational by 2030 [4]. These form part of a broader pipeline of more than 200 battery projects across the state, reflecting the shift toward storage as renewable penetration increases [4].

At the same time, system planning continues to incorporate firming capacity. The Australian Energy Market Operator forecasts the need for around 12GW of new gas-powered generation by 2050 as coal assets, including Eraring, exit the market [1]. This outlook underpins continued development of gas infrastructure proposals such as APA’s Riverina Storage Pipeline [1].

Workforce capacity is being addressed in parallel. The NSW and Federal governments have committed $15 million over four years to a Renewable Energy Skills Strategy aimed at supporting an estimated 7,000 peak construction roles and 4,500 ongoing positions, largely in regional NSW [7, 12, 18]. Measures include fee-free apprenticeships, school-based pathways, and Skills Coordinator roles to connect employers with training providers [7, 16]. These initiatives are intended to support delivery of major transmission projects, including EnergyConnect and the Hunter Transmission Project, which are critical to integrating new generation into the grid [12, 18].

Housing Supply Shortfall and Active Site Enforcement  

NSW is projected to fall short of its housing targets by 156,000 homes by 2029, with the shortfall estimated to cost the state up to $6.4 billion in revenue [15]. Reporting attributes the gap to planning constraints, slow approval timeframes and infrastructure deficits that continue to limit delivery capacity [15, 14]. While fast-tracked planning pathways have been introduced, at least one program has reportedly delivered no new homes six months after commencement [15].

Regulatory enforcement at site level remains active. In Botany, the NSW Building Commission issued a stop-work order on a $10.7 million apartment development after excavation works caused cracking and subsidence to a neighbouring property, requiring evacuation of residents [9]. The order is the fourth issued in Sydney since January in relation to excavation and structural risk [9], reflecting ongoing scrutiny of construction practices affecting adjoining properties.

Housing supply is also becoming more central in federal political debate. The new federal Liberal leadership has prioritised housing affordability and supply, including renewed discussion of settings such as the capital gains tax discount, which may affect investor participation and project feasibility [2].

Digital Workplace Laws Expand WHS Obligations 

NSW employers, including those in construction, are now subject to new obligations under the Work Health and Safety Amendment (Digital Work Systems) Bill [3, 5]. The legislation introduces a statutory “Digital Work System Duty”, requiring employers to ensure that artificial intelligence, algorithms and digital platforms used to allocate, manage or monitor work do not create health and safety risks, including psychosocial risks such as stress and fatigue [5].

The reforms extend existing WHS duties into digital systems used for rostering, performance monitoring and workflow management. The legislation also grants unions a right to inspect digital systems where a suspected safety breach arises, subject to a 48 hour notice requirement and a scheduled 12 month review of the scheme [3, 5].

Industry groups, including the Housing Industry Association and the Business Council of Australia, have raised concerns about the scope of access to business data, including internal communications and operational systems, and the potential exposure of commercially sensitive information [3]. The new regime adds a further compliance layer for businesses using digital management tools across site and office functions.

Final Thoughts

Current conditions reflect sustained project momentum alongside expanding compliance and delivery constraints. Large-scale renewable energy works, transmission projects and major public infrastructure are progressing, supported by direct government investment and workforce initiatives [4, 7, 12]. At the same time, housing supply projections indicate a substantial shortfall by 2029, with planning settings and infrastructure capacity continuing to influence delivery outcomes [15, 14].

Regulatory settings are also evolving. Active site enforcement, expanded digital workplace obligations and continued scrutiny of project delivery practices are increasing the compliance footprint for contractors and developers [9, 3, 5]. Across the sector, outcomes are being shaped by the interaction between infrastructure sequencing, labour availability, planning frameworks and regulatory oversight rather than pipeline volume alone.

1. by Sean Fleming (18 February 2026). Opinion: We need more than short-term storage to support the closure of Eraring. https://www.energynewsbulletin.net/opinion/opinion-articles/4527296/opinion 
2. by Grace Crivellaro (14 February 2026). Latest Liberal leader faces 'hardest job in politics'. https://www.gsherald.com.au/politics/latest-liberal-leader-faces-hardest-job-in-politics-c-21632162?utm_source=csp&utm_medium=portal&utm_campaign=Streem&token=aHHkFBxIvOQpiTy0s4YP%2BIez1kE65wcKvXgIOrQe0F1%2BAl6bSHBN8IJdnv6R8O8J6W8WFY7cqvdHF9d4Q6m4jw%3D%3D 
3.  Inside Small Business | by Tim Ladhams (13 February 2026). Battle lines drawn over NSW digital work systems legislation. https://insidesmallbusiness.com.au/latest-news/battle-lines-drawn-over-nsw-digital-work-systems-legislation 
4. The Armidale Express | by Heath Forsyth (13 February 2026). Huge Armidale East and Ebor battery projects awarded state-backed contracts. https://www.armidaleexpress.com.au/story/9174455/nsw-awards-contracts-for-big-battery-projects-in-armidale/ 
5. Human Resources Director | by Jack Campbell (13 February 2026). NSW’s digital work laws spark fierce battle over AI, safety and union power. https://www.hcamag.com/au/specialisation/employment-law/nsws-digital-work-laws-spark-fierce-battle-over-ai-safety-and-union-power/565226 
6. Renew Economy | by Giles Parkinson (13 February 2026). The little battery that could pave the way for ageing coal generators to be shut down on schedule. https://reneweconomy.com.au/the-little-battery-that-could-pave-the-way-for-ageing-coal-generators-to-be-shut-down-on-schedule/ 
7. PS News. (Date not specified). State and Federal governments partner to create the renewable energy workforce of tomorrow. https://psnews.com.au/state-and-federal-governments-partner-to-create-the-renewable-energy-workforce-of-tomorrow/173246/ 
8. (12 February 2026). Griffith council to apply for key infrastructure funding. https://insidelocalgovernment.com.au/griffith-council-to-apply-for-key-infrastructure-funding/ 
9. by David Barwell (12 February 2026). Residents evacuated as cracking halts Botany Road apartment development. https://www.smh.com.au/national/nsw/residents-evacuated-as-cracking-halts-sydney-apartment-development-20260209-p5o0qy.html 
10. The Weekly Times (Ryde) (17 February 2026). Construction begins on Rouse Hill Hospital. https://www.weeklytimes.com.au/construction-begins-on-rouse-hill-hospital/ 
11. NT News | by James O'Doherty (17 February 2026). Rouse Hill Hospital construction finally begins after decade of broken promises. https://www.ntnews.com.au/news/nsw/rouse-hill-hospital-construction-finally-begins-after-decade-of-broken-promises/news-story/b247b35d917d31399907ebb3403a4efb?btr=eca62593755b962cfe6ff763e2a04640 
12. Dungog Shire News Of The Area (17 February 2026). $15 million investment in state’s renewable energy workforce. https://dungogshire.newsofthearea.com.au/15-million-investment-in-states-renewable-energy-workforce 
13. Desi Australia (17 February 2026). Construction underway under Minns Labor Government on long-promised Rouse Hill Hospital. https://desiaustralia.com/news/media-release/construction-underway-under-minns-labor-government-on-long-promised-rouse-hill-hospital/ 
14. St George & Sutherland Shire Leader | by Murray Trembath (17 February 2026). Government drops M6 and mass transit system from new 20-year plan for shire. https://www.theleader.com.au/story/9170598/draft-sydney-plan-drops-m6-and-mass-transit-options-in-shire/ 
15. NT News | by James O'Doherty (17 February 2026). NSW faces $6.4 billion revenue loss amid warning of massive housing shortfall. https://www.ntnews.com.au/news/nsw/nsw-faces-64-billion-revenue-loss-amid-warning-of-massive-housing-shortfall/news-story/fd02a901af6dd0453ebf6b5c2734d47c?btr=f7771c18ac2f325d5ef44a3983683a42 
16. Process Technology (17 February 2026). NSW renewables workforce receives $15m government investment. https://www.processonline.com.au/content/business/news/nsw-renewables-workforce-receives-15m-government-investment-1562810073 
17. by Chris Edwards (18 February 2026). Coffs Harbour Bypass tunnels near completion. https://www.fullyloaded.com.au/coffs-harbour-bypass-tunnel-fitout/ 
18. Green Review (16 February 2026). NSW invests AU$15 million to train renewable energy workforce. https://greenreview.com.au/energy/nsw-invests-au15-million-to-train-renewable-energy-workforce/