Ms Moore has suggested the project to reduce the city’s reliance on coal-fired power generation, which she said puts Sydney at continued risk of blackouts because supply lines will be vulnerable to bushfires, natural disaster or mechanical failure.

The Council’s Sustainability Manager Chris Derksema said that the master plan would identify how many generators would be needed to eventually provide 330 megawatts, or 75 per cent of the city’s power needs, and where the generators would best be located.

Ms Moore said she was concerned the Federal Government and Australian Energy Regulator (AER), which controls energy supply companies, were proposing to expand coal-fired power stations rather than investing in sustainable energy generation.

“At a time when the Federal Government and the AER should be looking to foster options for innovation in electricity demand management and energy efficiency, the AER is proposing to increase costs and maintain the status quo.”

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The City has lodged a submission with the AER requesting that they consider alternative sources of energy generation rather than relying on coal-fired power generation.

Sydney City Council has explored preliminary suitable locations for the transformer units and are currently accepting tenders for the project.