Near neighbours of Australia’s likely newest wind project get inflation-based boost on payments

The concept of compensating wind farm neighbours for the view of the turbines is not as new as you might think, with the Palmer wind project in South Australia recently increasing its payment from what it originally proposed – in 2013. 

The 288 megawatt (MW) wind project is likely to be the next built in South Australia, given it has all approvals in hand, a Capacity Investment Scheme underwriting deal, an offtake agreement with AGL and the all-important grid connection. 

This week, developer Tilt Renewables released the updated draft community benefits package which included the beefed up near neighbour payment: $3,500 for people living within 2km of a turbine, or who have a property boundary within 1km of a turbine, plus an extra $100 every year for every additional turbine within this distance.

The company says this was lifted from the $2,500 payment originally proposed in 2013, to factor in consumer price index (CPI) inflation. The payments only apply to property owners, not to renters.

The 300 or so households living within 5km of a turbine, an area which takes in the towns of Palmer and Tungkillo, will also get $150 a year in energy bill subsidies. 

Annual payments totalling $175,000 will go towards a community benefits fund, an adult-learning scholarship, and some kind of mental and physical wellbeing sponsorship such as a community bus. 

Tilt says these allocations were made based on a survey and two workshops with local council and community leaders, and adjustments can still be made until January. 

The Palmer wind project has been on or around the drawing board since 2013 when it was a 114 turbine, 300 MW project.

But with litigious neighbours and two towns on either side, Tilt had to be on the ball about being a good neighbour itself – although whether it’s received unanimous approval is still in dispute, given the ongoing presence of the ‘No Palmer Wind Farm’ Facebook group. 

Final layout of Palmer wind farm, by Tilt Renewables.

Today, the project is 40 turbines and has only a slightly smaller generation capacity, thanks to modern technology superseding what was possible more than a decade ago. The individual turbine capacity has risen from 3.6 MW to 7.2 MW, with a tip height rising from 165m to 220m.

Neighbour payments and bill rebates are two additions to community benefits packages that are now becoming standard as a way to soften the perceived blow of living next to a wind farm and provide a clear link between energy generated locally and cheaper power.   

Tilt’s latest draft community benefits package for the Palmer project is in line with what other wind developers are beginning to offer around the country. 

The enormous Meering West project in northern Victoria extended its near neighbour payments boundary out to 6km from a turbine, while the developers behind Sunny Corner in New South Wales (NSW) have made their complex calculations that much more complicated by adding a way for those neighbours to get paid, faster. 

Sunny Corner is also close to some villages and not far from Lithgow, and its near neighbour boundary limit is also 2.5km.

Even transmission companies are now required to compensate neighbours for the view of towers, with Ausnet following new guidelines to pay close neighbours up to $40,000 in a one-off sum. 

If you would like to join more than 28,000 others and get the latest clean energy news delivered straight to your inbox, for free, please click here to subscribe to our free daily newsletter.