While a solar farm on Bathurst's eastern outskirts remains up in the air and a wind farm south of Oberon is only at the proposal stage, the $400 million battery is going ahead.

The NSW Department of Planning and Environment approved the Wallerawang 9 Battery project last week.

"It is not every day that there is formal government approval and strong community support for a $400 million investment in this city," Lithgow mayor Maree Statham said.

"The fact is we are presently witnessing an unprecedented level of investment in Lithgow in new forms of energy generation and storage with a number of major proposals currently being advanced.

"This $400 million project sends a strong message to others that there is real potential here, and it is a catalyst for exploring additional investment in other sectors which can provide new, diverse and sustainable employment opportunities.

"The council's administration has already turned their attention to how the city can benefit through complementary economic activities made possible by the investment.

"We are stepping forward to encourage accelerated planning of the Wallerawang precinct as a significant local employment area.

"Also, we are at an advanced stage of developing a new water scheme for the city which can support future economic growth including water-intensive industries."

READ ALSO:

Development company Greenspot - which acquired the old power station site in September 2020 and which had explored the idea of having a waste-to-energy project there - says the Wallerawang battery is likely to store energy from a large area.

"The Central West-Orana Renewable Energy Zone is expected to unlock three gigawatts of wind and solar generation by the mid-2020s," Greenspot CEO Brett Hawkins said.

"We have secured an approval for a major energy storage project here in Wallerawang which may play a role in making that a reality."

The iconic chimney stacks at the Wallerawang power station were demolished in November last year.