The NSW Deputy Premier has dismissed criticism by Barnaby Joyce and Angus Taylor that his government is trying to "prematurely" force coal out of the energy sector with a new renewable energy bill.
Former Deputy Prime Minister Joyce on Monday criticised government legislation to establish renewable energy zones to regulate a transition to wind and solar generation.
One zone will be in the New England and another in the Upper Hunter.
Mr Joyce, now the backbench Member for New England, condemned one element of the policy as a "carbon tax".
On Monday, Commonwealth Energy Minister Angus Taylor implied the state wanted to "force out coal generators prematurely" at an energy and climate summit hosted by the Australian Financial Review.
But on Tuesday morning John Barilaro, who is also Minister for Industry, said the Federal Minister had got it "absolutely wrong".
"Our Federal Nationals, they'll have a view," he said.
"I've always said let the market respond. The market is responding and wants to invest in renewables, wants to invest in hydro, wants to invest in gas.
"No-one's jumping up and down about coal fire power stations."
The state MP said he personally supported the energy plan, which would charge a levy on distributors to underwrite new energy projects. And the plan would be backed by the entire state National party, he said.
"Barnaby's missed the bit about gas. Gas is part of the policy," he said.
"Our Feds will say what they have to say.
"I believe the template of NSW should be the energy template for Australia. We're leading the way again as NSW."
He said Mr Joyce was a "good advocate" and a "retail politician" and praised his successful efforts during the term of the Gillard government to campaign against its price on carbon emissions.
The Electricity Infrastructure Investment Bill was passed by the Legislative Assembly last week and was before the Upper House at the time of printing. One Nation MLC Mark Latham last week moved 249 amendments to the bill.
Member for Northern Tablelands MP Adam Marshall said the New England zone would be the state's largest renewable energy zone, with some 8,000 megawatts of generation capacity - enough energy to power 3.5 million homes.
The government claims the policy road map was forecast to deliver 2,800 ongoing jobs and 6,300 construction jobs by 2030, largely in regional New South Wales.