The risk of power blackouts in NSW this evening has been "considerably reduced", according to Energy Minister Penny Sharpe.Earlier on Wednesday, Premier Chris Minns asked businesses and homes to reduce energy use between 3pm and 8pm as large-scale power shortages were expected across the state.

Some Sydney suburbs have already hit a scorching 37 degrees with even hotter temperatures to come as a heatwave grips two states. The heatwave has already struck western Sydney, with Penrith reaching 37 degrees at 1.

New South Wales faces the threat of rolling blackouts over the next few days as the state's energy grid faces one of its biggest tests since the closure of the Liddell Power Station last year.