A NSW government promise to invest $1.2 billion for renewable energy transmission over the next ten years has been welcomed by the Nature Conservation Council (NCC), but farmers are worried about the impact on agriculture and how they will be compensated.

NSW Treasurer and Minister for Energy Matt Kean says the Transmission Acceleration Facility will fast-track the Renewable Energy Zones (REZs) needed to replace existing power stations as they close by funding the development stages of transmission and other infrastructure.

"We want to make sure that every family and business across NSW has access to the cheapest and most reliable form of energy," he said.

"That's exactly why we're spending $1.2 billion to make sure we can get our wind and solar power connected into the system."

Chris Gambian from the NCC wants the lines to go underground in key sensitive areas like Alpine National Park, but argues the shift to clean energy is fundamentally good for the environment.

"One of the best things we can do to move away from dirty fossil fuels is invest in clean renewable energy," he said.

He said he was not overly concerned about the impact of the transmission lines on the environment. 

"Communities need to be consulted, we need to recognise the values of landscapes, and make sure we're not destroying important eco-systems," Mr Gambian said.

While it is not known where the new lines will run they will cross the state to connect the Renewable Energy Zones, and travel north and south to connect NSW with the national grid.

Farmers want compensation

The National Farmers Federation (NFF) has been concerned by a lack of consultation and the cost blow-outs for the proposed HumeLink Transmission Line.

That is now projected to cost more than $3 billion and will "leave households out of pocket" and "cause significant issues with land-use conflict amongst farmers", according to NFF CEO Tony Mahar.

Farmers in parts of the state have also recently raised concerns about the safety of such lines on their properties.

Outdated laws

Energy and environment policy consultant Professor Hugh Saddler from the Australian National University said the laws surrounding transmission lines were outdated and gave all the power to the operators.

"It's basically a handover from the days when the transmission operator was a government instrumentality," he said.

He said landholders should get a payment for access instead of having their land compulsorily acquired.