NSW has the most large-scale renewable energy projects under way in Australia, and lifted its share of clean energy markedly in the past year, as states and territories take the lead in decarbonising the electricity sector, a report by the Climate Council has found.

A jump in hydropower helped raise renewable energy share in NSW by 5 percentage points last year to 17 per cent. That was marginally above the national share of 16 per cent, and the second-biggest increase after South Australia.

The Climate Council, though, rated by the most populous state behind all but Western Australia and the Northern Territory. While NSW has a net-zero economy-wide emissions target for 2050, it has not set a goal for renewables.

By contrast, Victoria gained credit for its efforts to legislate this year a 25 per cent renewable energy share by 2020 and 40 per cent by 2025. Last year, the state's share was 12 per cent, up one percentage point from 2015.