'Great step forward' on energy plan

States and territories have agreed continue discussions on a national energy policy in what the design architect says is a "great step forward".

Energy ministers agreed at a meeting in Sydney on Friday they would release draft legislation that would implement the Turnbull government's National Energy Guarantee if it makes it through a coalition partyroom meeting next Tuesday.

Energy Security Board chairwoman Kerry Schott, who helped design the policy, told the meeting the result was a "great step forward".