Transport for NSW has signed a 1.9 billion AUD renewable energy agreement with Snowy Energy to power New South Wales’ entire public transport system, including trains, metro, buses and light rail.
The agreement is expected t0 cut 130 million AUD from the power bill of its public transport network, providing cost-of-living relief and emissions reduction.
Sydney Metro trains
© Sydney Metro
The 1.9 billion AUD contract, spanning seven years, will see the state’s public transport system powered under a single electricity supply arrangement for the first time. The savings generated will be reinvested directly into frontline transport services, at a time when rising fuel costs are driving increased passenger demand.
The agreement consolidates what had previously been a fragmented system, where individual agencies negotiated separate electricity contracts. By combining purchasing power across the network, the government has secured more favourable terms.
Minister for Transport John Graham said:
Cost of living pressures are real for household and government budgets. This contract reduces costs and moves us towards better environmental outcomes while we deliver a reliable public transport network.
Transport uses almost as much electricity as all other government agencies in NSW combined. It’s important we use our buying power responsibly and get the best possible deal for taxpayers, which is what we have achieved.
We are planning for a sustainable future as our network continues to grow, with new Sydney Trains fleets, more metro services, thousands of emissions-free buses, and Light Rail across the city and Parramatta.
Transport operations account for one of the largest energy demands in the state, consuming nearly as much electricity as all other public sector agencies combined. Under the new deal, this demand will increasingly be met by renewable sources, delivering substantial environmental benefits.
The contract was awarded to Snowy Energy, the retail arm of Snowy Hydro, following a two-year competitive tender process. The supplier will provide renewable-matched electricity, including energy sourced from projects such as the Uungula Wind Farm in regional New South Wales.
Snowy Hydro Chief Executive Officer Dennis Barnes said:
The new contract with Transport for NSW indicates the demand for renewable energy solutions is growing at pace.
There has been growing interest from businesses and government agencies across the country that are looking for innovative ways to decarbonise their operations.
Transport for NSW is a large energy user and they are leading the way in their efforts to reduce emissions.
Transport authorities have already begun reducing energy demand through complementary initiatives, including solar installations at key maintenance facilities. At the Mortdale train depot, for example, around 2,000 solar panels now generate over 1,300 megawatt hours of electricity annually, cutting both emissions and reliance on grid power.
The investment also aligns with broader network expansion plans, including new train fleets, increased metro services and the rollout of thousands of zero-emissions buses.
With fare caps already in place (50 AUD per week for adults, 25 AUD for concessions and 2.50 AUD daily for seniors) public transport remains one of the most affordable and environmentally sustainable travel options in the state.
The new energy deal is expected to strengthen that position, delivering both financial savings and measurable environmental gains as demand for public transport continues to rise.