NSW Farmers energy transition taskforce chair Reg Kidd said communities around Dunedoo are "fearful" they would be "collateral damage" in a bid to secure the state's power supply.

"The sheer scale and pace of the energy transition is forcing people into really difficult situations, being forced to give up parts of their family farms or face years of disruption to their operations, and it's causing enormous stress," Mr Kidd said.

"We're seeing the headlines about the need for more renewables and more quickly, but that's deeply distressing for the people who fear they will be left to foot the bill.

"We need the NSW Government to swiftly address these concerns not just about where and how transmission lines and energy developments will be built, but also how they will minimise the impact."

The Central-West Orana Renewable Energy Zone (REZ) is the first of five proposed across NSW.

While some have welcomed the development, others are concerned about the impact renewable energy infrastructure and transmission lines will have on their communities.

An environmental impact statement submitted for the project which would connect the REZ to the grid received overwhelming backlash. Almost 93 per cent of submissions made on the project opposed it.

Mr Kidd said NSW Farmers had been advocating to the government over concerns raised by farmers about land acquisition and impacts on farm productivity.

"We're looking at a future where we'll need to feed and clothe more people but at the same time there's this major push from all sides of politics and big business to build power plants on productive farmland," Mr Kidd said.

"They might want to get it done quickly, but they also need to do it well, so we don't destroy families and communities or lose our precious productive potential.

"The people who will have to live with these transmission lines, wind turbines, and solar panels are understandably worried about what it means for them, and we have been working with the government to put the stress this has caused clearly on their agenda."

The NSW Government will soon be holding a review into improving compulsory land acquisition processes for communities impacted by major infrastructure projects.

An in-person public consultation session will be held in Dubbo on April, 4 as part of the review.

"Compulsory acquisitions are necessary at times to allow state infrastructure and other public projects to proceed for the benefit of the wider community, such as schools, roads, water and electricity infrastructure projects," lands minister Steve Kamper said.

"However, there are opportunities to improve processes which are being explored by this review to help landowners negotiate more effectively on their compensation.

"We want to put people in the best position to understand their legal rights and ensure there are consistent and transparent acquisition processes across government."

NSW Farmers welcomed the review.

"The system at the moment is fundamentally flawed, it is completely ignorant of the needs of regional communities and agricultural production," Mr Kidd said.

"This is where we're seeing the acute problems with the energy transition and major road and rail projects right across the state, from the biosecurity impacts through to the limits placed on farming practices and the social upheaval for communities.

In response to concerns from the farming community, NSW energy minister Penny Sharpe said her government is "committed" to working with the community throughout the development of the project.

"The Renewable Energy Zone presents real opportunities for local communities. It also has real impacts that need to be worked through," she said.

"I continue to work closely with stakeholders including NSW Farmers to improve the support given to farmers in all of the Renewable Energy Zones, including Central-West Orana."