Tenterfield Shire Council was vying against five other towns to become the capital of green innovation.

Speaking to the Tenterfield Star ahead of an announcement, executive director of Starfish Initiatives Adam Blakester said Tenterfield had been unsuccessful.

The concept had been pushed by Starfish Initiatives and backed by the NSW Office of Environment and Heritage.

Instead, one of Uralla, Walcha, Glen Innes, Bingara or Manilla will take on the company’s proposal to be a green prototype.

Despite Tenterfield’s fruitless attempt, Mr Blakester said that if the first town was deemed a success there could be room to expand.

By Mr Blakester’s reckoning a town the size of Tenterfield would save in excess of $10 million annually on electricity costs.

He said he would wait until after the announcement of the successful applicant next Thursday to comment on why Tenterfield’s bid was knocked back.

UPDATE:

MEMBER for Northern Tablelands Adam Marshall has today said a press conference will be held tomorrow morning to announce the successful applicant in the zero net energy town.

The press conference is set to be held at McCrossin's Mill Museum in Uralla - shedding some of the intrigue behind the preferred nominee.

Adam Marshall and Parliamentary Secretary for Renewable Energy Leslie Williams will announce the winner as well as the consultants who will create the blueprint and business case.

Uralla mayor Michael Pearce said his town "fit the bill".

“We already have solar panels powering our aged-care facilities and heating our swimming pool; our community is telling us they want more renewable initiatives and this could fit the bill,” Mr Pearce told the Armidale Express.

Tenterfield Shire Council director of strategic planning and environmental services James Ruprai said he was "very disappointed" with the decision.