NSW electricity use is projected to grow at 1.6per cent per annum, while the peak summer and peak winter demands are forecast to rise by 2per cent over the next decade.

As a result, the Australian Energy Market Operator has estimated 7000megawatts of new peaking gas generation and 700megawatts of new base-load gas generation will be required in the next 20 years.

This would nearly triple the share of gas-fired generation in NSW to 30per cent.

‘‘So we will need three times more gas to fuel these power stations and to supply greater consumption of gas in households and our commercial and industrial sectors,’’ Mr Hartcher told the NSW Coal and Energy Conference.

‘‘Our reliance on importing gas from South Australia and Victoria, where it is reported that natural gas production is projected to decline, must change.’’

But any expansion of the coal seam gas industry would be balanced against the value of the state’s environmental assets.

The government is presently developing an Upper Hunter and New England strategic land use policy, which will include a 10-week consultation phase.

‘‘There are areas yet to be explored, yet to be developed and we need to do that in a consistent and rational way,’’ Mr Hartcher said.

‘‘That does not mean and never could mean that all of NSW is open for mining. We are working to identify those appropriate areas consistent with protection of our water, farmland and environment.’’

A group of about 25 protesters from the environment lobby group Rising Tide rallied outside yesterday’s protest calling for the abandonment of the T4 coal loader project at Kooragang Island and increased investment in renewable energy.