A major part of New South Wales' electricity network will be leased to a consortium comprising Canadian, Middle Eastern and local investors.

NSW Premier Mike Baird this morning announced the NSW Electricity Networks consortium had won the bid for the 99-year TransGrid lease after offering to pay $10.258 billion.

TransGrid was the first "poles and wires" business to be put on the market as part of the State Government's plan to lease power assets to raise money for infrastructure investment.

The consortium consists of:

Canadian pension fund CDPQ (24.99 per cent)

Canadian pension fund CDPQ (24.99 per cent) Infrastructure fund manager Hastings, as manager of the Utilities Trust of Australia (20.02 per cent)

Infrastructure fund manager Hastings, as manager of the Utilities Trust of Australia (20.02 per cent) Tawreed Investments Limited, described by the Government as "the global direct infrastructure investment vehicle of the Abu Dhabi Investment Authority" (19.99 per cent)

Tawreed Investments Limited, described by the Government as "the global direct infrastructure investment vehicle of the Abu Dhabi Investment Authority" (19.99 per cent) Wren House Infrastructure, owned by the Kuwait Investment Authority (19.99 per cent)

Wren House Infrastructure, owned by the Kuwait Investment Authority (19.99 per cent) ASX-listed energy infrastructure manager Spark Infrastructure (15.01 per cent).

The transaction means the consortium is set to become the biggest player in the national electricity grid and take over part of the Federal Government's fibre optic network, as well as control much of the nation's backup electricity supply.

Mr Baird said the lease deal with the Australian-led consortium was a "stunning" result.

"Importantly, they're proud to be investing in their backyard," he said.

"We've heard for a long time about Australian super and the opportunities they have to look at these types of assets, and obviously that's an important part of this lease today."

He said the foreign investment was also welcome.

"If you want to participate in the global market, you have to be welcome and open to foreign investment," Mr Baird said.

"But importantly, this consortium is led by Hastings, which is a well-known superannuation participant here in Australia."

Mr Baird repeatedly emphasised that the consortium was Australian led, but denied he was trying to downplay the role of overseas investors in the bid.

"I think we've been very clear that we welcome foreign investment, we welcome participation in the global economy. What this bid represents is the United Nations, I've said that very clearly and what I'm proud of is that the United Nations was led by Australians," Mr Baird said.

"To me this reflects what a global market is all about and I will always welcome foreign investment."

Race was 'very tight', Mike Baird says

He denied that security concerns had counted against the bid of Chinese government-owned State Grid.

"Every single consortium was cleared [by the Foreign Investment Review Board] which obviously meant that the race was very tight," he said.

Mr Baird conceded that about $3 billion of debt attached to the business would have to be paid, leaving about $7 billion from the transaction in the state's coffers.

The better-than-expected result for Transgrid could mean that Mr Baird raises more than the $13 billion he promised from power privatisation when he took the policy to the state election in March.

But Mr Baird said with two more poles and wires businesses yet to be leased, he did not want to count on the extra funds just yet.

"We've had a very good start. We're not even at half time yet so many things can change in a soccer match ... after half time," he said.

"I can assure you that if there are additional dollars that come every single one of those will go into additional infrastructure for the people of this state."

There were several contenders for the bid.

State Grid, which partnered with Macquarie Infrastructure, had been seen as a leading contender.

The lease of TransGrid is the first of three major transactions involved in the power privatisation process, which is hoped to raise up to $20 billion.

The Government has promised that revenue would be invested into new roads, rail, hospitals, schools, new sports and cultural facilities and water infrastructure.

Just over 50 per cent of power distributors Ausgrid and Endeavour Energy will also be put up for long-term lease.