The trigeneration project will receive $3.75 million from the Commonwealth Government's $20 million Liveable Cities program.

Federal Infrastructure and Transport Minister Anthony Albanese announced the grant for a trigeneration energy system for the $8 billion Green Square urban development in southern central Sydney, as part of the next instalment in the Commonwealth Government's commitment to make our cities more productive, more sustainable and more liveable.

Once completed the low carbon trigeneration system will service 3300 homes and 5500 residents across the 278 hectare Green Square precinct.

“Trigeneration is twice as energy efficient as coal-fired power and generates electricity and provides heating and cooling as well,” said Mr Albanese.

The grant comes on top of the $4.4 million in Commonwealth funding that was announced last year for water recycling treatment on the site and at Sydney Park.