NSW public transport to run on renewable energy by 2027

Electric buses, trains, and light rail services in New South Wales will operate entirely on renewable energy starting in July 2027, according to the state government. The Minns government announced a $1.9 billion contract with Snowy Energy, marking the first time all public transport operations in the state will be unified under a single renewable energy agreement. NSW Minister for Transport, John Graham, stated, "This contract reduces costs and moves us towards better environmental outcomes while we deliver a reliable public transport network."

The seven-year deal, effective until 2034, is expected to save $130 million on transport power bills, which will be reinvested into services. Snowy Energy, the retail brand of the commonwealth-owned Snowy Hydro, was awarded the contract after a competitive two-year process. Snowy Hydro CEO, Dennis Barnes, explained that the deal will align public transport energy consumption with renewable energy production through renewable energy certificates.

The NSW government claims this initiative will lead to significant emissions reductions, avoiding over 800,000 tonnes of CO2 annually compared to conventional power. Transport for NSW aims to reduce operational emissions by 65% by 2030 and achieve net zero by 2035. However, fossil fuels still power most public buses and diesel-powered ferries, with a transition to electric ferries expected by 2035. The government has ordered over 500 electric buses, with plans to replace the entire diesel fleet of 8,000 vehicles.

Power Read: This agreement positions the NSW government as a leader in renewable energy adoption in public transport, potentially enhancing its political capital amid rising fuel costs and environmental concerns. By securing a long-term contract with Snowy Energy, the government reduces its exposure to volatile energy markets and demonstrates a commitment to sustainability, which could bolster public support. However, the ongoing reliance on fossil fuels for certain transport modes exposes the government to criticism and risks undermining its environmental goals.

What to watch: Upcoming decisions on the integration of electric ferries into the public transport system by 2035.