URALLA could take itself off the electricity grid within a decade following its successful bid to become Australia's first Zero Net Energy Town (ZNET).
NSW Parliamentary Secretary for Renewable Energy Leslie Williams made the announcement in Uralla on Thursday.
"Uralla will be the first town that satisfies all of its own energy needs from renewable energy sources, or zero net energy, in a way which is competitive in terms of price, quality, reliability and security," Ms Williams said.
"It is possible that this could be achieved within a decade."
Strong support from all sectors of the community, including Uralla Shire Council, local businesses and local residents, was a major reason the town was chosen, Ms Williams said.
"This first stage of the ZNET journey for Uralla is about scoping out the feasibility of being a zero net energy town and defining the mix of different renewable energy sources required and how it might be delivered," she said.
"Total energy costs for a rural town with a population of 2500 are estimated to be $10-20m per year.
"ZNET provides a potential to transform energy from being a cost into the basis for a sustainable economic model through revenue, industry, business and employment."
A $105,000 State government grant will be used to to examine the benefits and risks of the project, focusing on economic, financial, social and environmental impacts.
Moreland Energy Foundation Limited will prepare the ZNET business case using Uralla as a case study, with the report due by June next year.
