'I won't let NSW down,' Baird says

A triumphant Premier Mike Baird has thanked NSW voters for putting him back in the job, promising he won't let them down.

He has blamed a Labor "scare campaign" against his electricity network lease plans for a swing against the government.

But now that the electorate has given him his hoped-for mandate, he says he is confident he will be able to get the privatisation package through the upper house.

"I will do everything I can to not let them down," Mr Baird told reporters in Manly on Sunday morning.

Mr Baird said he has not yet spoken to crossbench MLC Reverend Fred Nile about a possible deal to pass his electricity package.

"My call is not only to the upper house, it's to the leader of the opposition," Mr Baird said.

"They have a chance to support what the people of this state have done, and that's given us the mandate to get on with it."

The premier conceded that the Greens' likely wins in Ballina and Lismore - both seats that were held by the Nationals on margins of more than 20 per cent - showed his government "had a lot more work to do" on the issue of coal seam gas mining.

Mr Baird's win in the NSW election is a win for policy over populism, a senior federal minister says.

Mr Baird was returned as NSW premier in Saturday's election, winning with a large majority despite losing 16 seats across the state with Labor picking up at least 13.

Social Services Minister Scott Morrison said that a year ago the NSW Liberal party was in "pretty crook shape".

"Last night they won a thumping election, the second worse result for Labor in its history," Mr Morrison told Sky News on Sunday.

Mr Morrison said Mr Baird overcame a scare campaign about his plan to lease 49 per cent of the state's electricity poles and wires to fund an infrastructure program.

"Mike Baird's win was critical for the national economy - the infrastructure agenda is very important for the economy," Mr Morrison said.

"It is driving the NSW economy, it is driving the national economies."

Saturday's result was a welcome lift for the conservative side of politics following the recent defeats of first-term governments in Queensland and Victoria.

The NSW coalition is predicted to win 53 seats in the 93-seat parliament, with Labor expected to finish with around 34 seats.

• Labor's Foley concedes defeat in NSW

• Baird wins second term in NSW

• Egan slams ALP's anti-privatisation stance

"We sought a mandate to make New South Wales great and tonight the people of New South Wales have given us that mandate," Mr Baird said during his victory speech.

Mr Baird claimed the win gave him a mandate for his controversial sell-off of electricity assets.

"Tonight they have chosen hope over fear."

The coalition lost 16 seats across NSW with Labor picking up at least 13 - making it far more competitive for the 2019 election.

• Seven Network ReachTEL exit poll had the Coalition leading Labor 54 per cent to 46 per cent on a two-party-preferred basis

• Labor received a swing of around nine per cent

• Labor needed a swing of 14.7 per cent to have a chance of forming government

• The Coalition won the 2011 state election with 69 of 93 lower house seats

• The Greens are expected to receive four seats

Mr Baird has claimed a mandate to go ahead with the government's plan to partially lease electricity assets after winning the state election on Saturday.

He said the government had been open with the voters over the leasing plan, exposing it "to the biggest scare campaign" in state election history.

The crowd chanted "four more years, four more years," as Mr Baird entered the room.

"The reason I love this state is because of its people and friends, tonight they have chosen hope over fear," he said with Foreign Minister Julie Bishop in the crowd.

He thanked Opposition Leader Luke Foley for his concession speech but accused Labor of the "biggest scare campaign" in NSW election history.

Mr Baird said the government had lost some good MPs because of that campaign against the leasing plan, and warned Labor that it would not have it easy at the next election.

"I have heard some talk tonight about Labor being back in the game for the election in 2019," he said.

"Well, let me give you this assurance, in four years we'll be back in those seats we lost, seeking to represent them over the good things we do for the people of NSW over the next four years."

Opposition Leader Luke Foley addressed the Labor Party faithful at the Catholic Club in Lidcombe to concede defeat at 9:20pm (AEDT) and was full of praise for his political opponent.

"Mike Baird took over the leadership of the Liberal Party and the Government when his Government had entered very stormy waters and he steered the ship to safety.

"He is a formidable opponent. He's at the peak of his popularity. He's also an honourable opponent.

"Right through this campaign Mike Baird and I have both ensured that it was never personal.

"I want to thank Mike for the way he's conducted himself during the course of this campaign."

Mr Foley said despite the electoral defeat, the party had made strong progress to regain the trust of the people of NSW.

"A majority of voters have decided that now is too soon for Labor to return to Government," Mr Foley said.

"I understand their decision and I accept it. But friends, the people of NSW have breathed new life into state Labor today.

"We've received a half a million votes more today than we did at the last election.

"At the last election we won 20 seats. At this election, we'll finish with a number of seats in the mid 30s."

Deputy Premier and Transport Minister Gladys Berejiklian said the Government had expected to lose seats but was "thrilled" with the outcome so far.

"We're thrilled with some of the results we're seeing, but there is still a lot of counting to go," Ms Berejiklian said.

"It's interesting to see in some areas we're actually seeing swings to the Government, which we hadn't anticipated.

"So far, I'm pleasantly surprised with the result. I hadn't anticipated that we'd hold onto some of these areas quite as well as we have."

Early counting showed the swing against the incumbent Government was inconsistent throughout the state, but the Coalition would hold enough key seats to retain power.

Morning news break – March 29