NSW has backed the federal government's National Energy Guarantee and criticised several Labor-led states for threatening to block the deal.
NSW Premier Gladys Berejiklian announced on Thursday her cabinet had endorsed the Turnbull government's energy plan which she believes will lower power prices.
Ms Berejiklian encouraged all other states to sign up to the plan, which would see Australia's energy and climate policies combined for the first time.
"I urge all states to put the national interest ahead of their local political interests," Ms Berejiklian said in a statement.
She took specific aim at Labor governments for holding back on the deal.
"It is disappointing that Labor states are standing between the community and lower power prices," she said.
Both Victoria and Queensland challenged the policy, saying it doesn't go far enough and questioning how well it's supported by the coalition party room.
Victoria wants the federal government to commit to increasing future emission reduction targets before it will give the deal the nod.
State and territory energy ministers will meet in Sydney on Friday to examine the detail of the NEG, which is tipped to reduce household power bills by about $550 a year.