The New South Wales government will next week launch the sale process for the last of its three planned power grid divestments.
NSW is inviting prospective bidders to take a 50.4 per cent stake in Endeavour Energy, the state's second-biggest electricity distributor.
The deal is expected to raise up to $4 billion, according to recent media reports.
"We are well on our way to delivering our target of $20 billion to go towards new infrastructure across NSW," state treasurer Gladys Berejiklian said on Friday.
The Endeavour sale process follows the $16.2 billion sale of the Ausgrid network to a consortium of local pension funds in October, and the $10.2 billion sale of TransGrid to a consortium of international funds in November 2015.
Earlier this year, Australia's federal government blocked bids from Chinese and Hong Kong companies for Ausgrid, citing national security concerns.
That forced the NSW government to sell the distributor to local funds IFM Investors and AustralianSuper, at a lower price.
Bidders are able lodge an expression of interest in Endeavour until January 16.
