Newcastle is set to undergo one of its biggest transformations yet to become the nation's greenest city, leading the way to a clean-energy future.

Newcastle will be the heart of Australia's first commercial-scale smart grid after a consortium led by EnergyAustralia won the federal government's $100 million Smart Grid, Smart City bid yesterday.

Minister for Environment, Climate Change and Water Senator Penny Wong delivered the news at CSIRO headquarters in Mayfield West.

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