The NSW government will spend $110.5 million on Hunter roads to help transport huge wind turbines from Newcastle port to inland renewable energy zones.
Treasurer Daniel Mookhey has included the two-year funding in next week's state budget.
The federal government will provide an additional $18 million to the project, which includes state road upgrades and planning for a wind turbine storage hub on Port of Newcastle land.
The roads money will help trucks carry 90-metre wind turbines from Newcastle to the designated Central West-Orana Renewable Energy Zone near Dubbo.
It is understood the funding will help alleviate pinch points on the 230-kilometre route, including on the New England Highway, Golden Highway and Castlereagh Highway.
The funding will not be used for the long-awaited bypass of Muswellbrook, where a low rail bridge forces turbine-loaded trucks onto back streets en route to the clean energy zone near Armidale.
"This money is separate from anything to do with Muswellbrook bypass," Mr Mookhey said in an interview with the Newcastle Herald on Wednesday.
"It's about making sure the port of Newcastle is connected to Central West-Orana."
It is unclear if any of the money will help upgrade the mass-restricted Denman Bridge, which forces oversized trucks off the Golden Highway onto council-owned back roads.
Muswellbrook Shire Council staff told the NSW Independent Planning Commission in January that the council objected to wind farm companies moving oversized loads along its roads until the government upgraded them.
Council roads manager Kellie Scholes told the IPC that the Muswellbrook detour for oversized vehicles "isn't an ideal route, either".
"It goes past a school, the Muswellbrook High School, and the major pedestrian crossing for those children going to and from school," she said.
"It also snakes around down through a residential area and through our major interchange, bus interchange, where school children meet to get the buses from their country."
The council staff estimated that proposed New England wind farms would need 600 turbine blades transported through the shire in the next six years and the Central West zone 1200.
Minister for Climate Change and Energy Penny Sharpe said the new state funding would improve the Hunter road network, help build more clean energy projects and drive down power bills.
"To build solar and wind farms and our new transmission network, we'll need trucks to carry their components to sites," she said.
"Upgrading the roads ensures delivery can happen quickly and safely."
Transport for NSW finalised a design for the Muswellbrook bypass three years ago, but work has not started and the federal government paused the project in November.
