Prime Minister Anthony Albanese says the Hunter offshore wind farm project is "about jobs", but his government is also conscious of protecting the "very important local environment".
The 1800-square kilometre offshore renewable energy zone has attracted opposition from Port Stephens fishers and tourism operators concerned about the environmental impact of floating wind turbines.
Opposition leader Peter Dutton has joined the criticism, accusing the government of failing to consult properly with the community on the power-generating zone.
Energy Minister Chris Bowen announced in July that the zone would be smaller and further out to sea than first proposed.
The declared area starts 20km from the coast at Port Stephens, about 9km further offshore than first suggested, and more than 35km from the coast at Swansea.
Mr Bowen met with community representatives in Canberra in November.
Mr Albanese said during a visit to the Hunter on Tuesday that the government was "continuing to have appropriate community consultation".
"But the provision of power is about jobs," he said.
"It's about jobs being created in terms of construction, but also jobs in places like Tomago, not far from where we are here, will need a reliable supply of power, and that is important for the region."
The Prime Minister said Paterson MP Meryl Swanson was "very engaged" in the issue "making sure what is delivered is a win-win".
"A win in terms of reliable energy being supplied, but a win as well in terms of jobs and looking after what is a very important local environment and other local jobs in areas like tourism," he said.
The government estimates the project will create 3000 construction and 1500 ongoing jobs in clean energy manufacturing across the Lower Hunter.
Eight companies or joint ventures have applied for licences to explore the feasibility of establishing wind farms in the Hunter offshore zone.
The government is expected to announce the successful applicants in June or July.
One industry source said the government could decide to award no licences in the Port Stephens section of the zone to resolve the political problem of community opposition.
The already marginal Labor seat of Paterson could be on a knife's edge leading into the 2025 federal election if a boundary distribution this year shifts some of its left-leaning suburbs to other electorates.
Ms Swanson retained the seat in 2022 with a reduced margin of 3.3 percentage points.
