The New South Wales (NSW) Government in Australia has decided to allot A$9.25 million to Macquarie Generation to expand the Liddell Power Station solar thermal plant with three more mirror arrays.

The funding is part of $27 million marked for renewable energy projects, helping to kick-start investment in the State's solar, wind, biogas and geothermal technologies. Deputy Premier and Minister for the Environment and Climate Change Carmel Tebbutt said the grants were part of the NSW Climate Change Fund Renewable Energy Development Program and would support seven projects across NSW.

"This investment by the Rees Government is not only supporting emerging renewable energy technologies, it is stimulating investment by the private sector in alternative power generation. We estimate that our contribution to these projects will lead to around $200 million being invested in the sector," said Tebbutt.

The government funding will help double the amount of energy produced at its Liddell power station solar thermal plant in the Upper Hunter.

Rob Cooper from Macquarie Generation says the funding will allow three more mirror arrays to be built covering nearly three hectares.

"Our existing project at Liddell power station, which is currently in the commission stage, when it's completed will produce renewable energy for approximately 500 homes and the Minister's announcement should enable approximately the doubling of that project, so it would look as though the project in the future would provide renewable energy for over 1,000 homes, which is great," he told abc.net.au.