Power supplies in NSW should "be fine for the foreseeable future" but the state's energy minister says he is monitoring the situation closely.
Matt Kean is "cautiously optimistic" about the continuity of power supplies after asking residents to reduce their energy usage on Wednesday night to prevent blackouts when a number of coal-fired power stations unexpectedly failed to come online.
The call came after the minister spoke to Australian Energy Market Operator AEMO chief executive Daniel Westerman, who told him a generator at the Bayswater Power Station wasn't coming back online.
"I can inform the public that that generator will be coming online tonight, so supply conditions will ease," Mr Kean told reporters on Thursday.
"At this stage, we have confidence there's enough reserve capacity in the system to ensure that we don't have to ask people to be considerate of their options tonight.
"But we are monitoring the situation closely because of the changed weather conditions and the unreliability of our existing equipment."
Mr Kean also lashed out at power generators for not being clear about their available capacity.
"A number of generators have tried to game the system," he said.
"They haven't been clear about what capacity they have available.
"My message to the generators needs to be very clear - stop putting your profits above people."
Mr Kean spoke to energy companies overnight to encourage them to work with the AEMO to bring their capacity online, particularly during times of peak demand.
Sydney's Vivid light festival was not affected by the call to reduce power usage because it's using energy efficient LED lights.
Mr Kean advised consumers to upgrade their appliances to energy efficient systems to cut their bills and reduce pressure on the system.
He acknowledged public facilities had been asked to reduce energy use, but this was not affecting frontline services.
"So what we were doing was just being conscious of our energy usage, to take precautionary measures to make sure we safeguard the grid," Mr Kean said.
Earlier, Mr Kean said the energy crisis gripping NSW, Queensland, South Australia, Tasmania and Victoria showed why it was vital to transition to renewables.
"We need to move to new technology that's going to keep the lights on and drive prices down," he told Sydney radio 2GB.
"Right now we are relying on old technology that's not reliable."
Existing coal-fired plants need to be maintained while new infrastructure for renewable power is built, he added.
"We should be moving towards those newer technologies that protect us from global price shocks, that protect us from unreliable equipment and can be financed by the private sector."
