The Crudine Ridge Wind Farm is one of many renewable energy projects within the Central-West Orana Renewable Energy Zone. (ABC Central West: Lauren Bohane)
Penny Sharpe says the development of renewable energy needs to occur "quickly", which will lead to mistakes.
It follows the destruction of an Aboriginal heritage site earlier this year within the Central-West Orana REZ.
The minister says a grant funding program for farmers within the REZ will open in the coming months.
New South Wales Energy Minister Penny Sharpe has conceded mistakes will occur with the rollout of renewable energy projects but says it is necessary to speed up their development.
In March, renewable energy consortium ACEREZ destroyed an Aboriginal heritage rock shelter near Mudgee during the construction of transmission infrastructure for the Central-West Orana Renewable Energy Zone (REZ).
An investigation conducted by the company concluded "failures in site design and on-site construction protocols" led to the irreparable destruction of the site.
Ms Sharpe made the admission after announcing a grant program for producers within the Central-West Orana Renewable Energy Zone at the National Renewables in Ag Conference in Orange on Wednesday.
The Aboriginal rock shelter was demolished during construction of a renewable energy zone in central west NSW. (Supplied: Kylie Manson)
Ms Sharpe said she was "appalled" by the actions of ACEREZ.
"We cannot say to First Nations communities that we will look after your heritage and then have something like that happen.
"You cannot build trust with communities if we don't do what we say we're going to do."
Ms Sharpe said the rollout of the Central-West Orana REZ "has been way too slow" with the state racing to meet its energy targets.
"This infrastructure needs to be built … We are doing it very quickly and when you do things quickly, things go wrong," she said.
"We are seeing more projects being approved and coming out of the system, which is very welcome."