Premier Mike Baird says the people of NSW have delivered his party has a mandate by returning the Liberal-Nationals to power for another four years, ensuring the government will push ahead with its bold power privatisation plans.

Speaking at the Sofitel Sydney Wentworth hotel in central Sydney to a rapturous crowd of supporters, Mr Baird said voters had "chosen hope over fear".

"We decided to be open with the people of NSW and … we exposed ourselves to a big scare campaign - I believe it was the biggest scare campaign in state history," he said.

"And as a result we lost some good people tonight."

Mr Baird's key re-election plank was a policy to partially lease the state's electricity "poles and wires" and spend the expected $20 billion proceeds on big roads, rail and other infrastructure projects.

Labor and the unions had claimed it would lead to higher power prices and job losses, and questioned the national security implications should a foreign investor lease the assets.

Mr Baird said despite a swing against the government, the party made gains in some seats, such as Oatley and Mulgoa.

He also indicated Nationals MP John Barilaro might retain the marginal seat of Monaro.

The Premier thanked his staff and family, including his "soul mate",  wife Kerryn.

He said the government would "work every day for you, to make your lives better".

"That's what this election campaign has been about and that's exactly what we are going to do … because I love this state."

The government's majority has taken a substantial hit.

It appears to have secured 53 seats to Labor's 33 in the next NSW Parliament.

Counting also indicates the Greens have won four seats, including the progressive inner-city seat of Newtown, and retained Balmain, while other candidates have snatched two seats, with one undecided.

Independent Sydney MP Alex Greenwich, a protege of Sydney lord mayor Clover Moore, has claimed Sydney.

"It seems that Sydney has declared itself independent again. It would be really exciting to have more Greens on the cross bench," he said, adding he had been enjoying the company of several Liberal MPs thanks to corruption allegations in the last Parliament.

Opposition Leader Luke Foley, who was seeking to move from the upper house to the lower house seat of Auburn, retained the seat for Labor.

Of the three north coast seats where coal seam gas has been a defining election issue, Ballina appears likely to fall to the Greens, but the Nationals look likely to retain Tweed, according to the ABC.

In Tamworth, where coal seam gas was also an issue, the nationals incumbent Kevin Anderson appears to have fended off a strong challenge from independent Peter Draper.

According to the ABC, former Labor minister and Labor's planning spokeswoman Jodi McKay is likely to win the seat of Strathfield from Liberal MP Charles Casuscelli.

A Fairfax Media analysis has called a number of seats for the Liberal Party: Baulkham Hills, Bega, Camden, Castle Hill, Hawkesbury, Hornsby, Manly, Wagga Wagga and Wakehurst.

Among the seats the analysis has called for Labor are Charlestown, Macquarie Fields, Summer Hill, Wallsend and Shellharbour, Newcastle, and Kogarah.

Fairfax Media has also declared Lakemba for Labor candidate Jihad Dib, a celebrated former school principal.