New South Wales has closed a controversial loophole that allowed wind farm opponents to block new developments by lodging plans for “phantom dwellings” that might never be built, in key changes to the state’s renewable energy planning rules.
The updated NSW Renewable Energy Planning Framework, released on Tuesday, has been welcomed by the renewable energy industry as “much needed certainty” for both developers and communities in the state, as the rollout of large-scale wind and solar ramps up to replace coal.
The changes span across five new and updated guidelines, including for landholders and developers negotiating commercial agreements for hosting renewables projects; for route selection, community consultation and visual impact of new transmission infrastructure; and on project decommissioning.
But the key change the wind industry was watching for is to rules around land development rights, which previously allowed neighbouring landholders to “strategically” propose a house on their property – even if they had no intention to build it – to clash with the placement of proposed turbines.
“This results in vexatious neighbours becoming potential project killers,” a development manager with one major renewable energy development company told Renew Economy in January.
The Hills of Gold wind farm in the New England region of NSW, for example, had to remove 11 turbines from its project because of what one industry insider described as “a hypothetical house, that may, sometime, but probably never, be built.”
The new rules, however, state that from November 12, 2024, development applications for new dwellings submitted after a proposed wind project has received its state environmental assessment requirements (SEARs) do not require assessment by planning authorities.
That is, landholders would have to already have a permit for a potential new dwelling – or have already applied for it – for it to have any impact on the approval of a wind farm that has already embarked on the state planning process.
Furthermore, even if the landholder does have a development application (DA) or is in the process of seeking one, the new rules state that a “potential dwelling” should not be treated as an existing dwelling, for the purpose of visual impact assessment or noise impact assessment.
Rather, the rules say that only those development consents or approvals that have “physically commenced as of 12 November 2024 should be treated as existing dwellings… for the purpose of conducting a visual impact assessment or noise impact assessment.”
The updated guidelines also include changes to how the visual impact of a proposed wind farm is assessed, including through changes to the frame of reference for determining scenic quality and by tightening the classification around the quality of views.
A “proportional” visual assessment approach has also been introduced, including a reduction of requirements at the scoping stage and a reduction in the need for photomontages, to ensure the level of assessment matches the likely impacts and risks of development.
The Framework also introduces setbacks to avoid “significant visual impacts” from wind farms and new transmission lines, and adopts a new Benefit Sharing Guideline that the government expects will generate more than $400 million to support community and local government initiatives.
“It’s vital the planning system actively supports the energy transition and delivers timely approvals on development applications,” NSW planning minister Paul Scully said on Tuesday.
“Greater certainty and transparency over renewable energy assessment processes means more renewables faster, cheaper electricity bills and more jobs. It also means communities and industry know what to expect of the planning system.
“It is critical that we continue to work collaboratively with communities and industry to minimise impacts, develop effective solutions where challenges exist and provide support where it’s needed, which is why the addition of a Benefit Sharing Guideline is so important,” Scully said.
Industry body, the Smart Energy Council, says the changes will allow for faster and more consistent decisions, include greater emphasis on the need for local benefits, and provide industry with greater investment certainty.
“These updated guidelines …provide the renewables industry and communities across NSW with much needed certainty,” SEC chief John Grimes said on Tuesday.
“Providing communities with more transparency on how planning assessments will be made is critical to ensure strong social licence and these guidelines address that need in a significant way.”
Squadron Energy, the renewables development company backed by iron ore billionaire Andrew Forrest, says the new guidelines will help ensure big wind and solar projects can pass through the planning system more efficiently.
“Importantly, the guidelines provide additional clarity on definitions, for both industry and community, which will enable developers to bring high quality projects into the planning system and lift investor certainty.”
Squadron, which is developing a number of major projects in NSW, including the 700 megawatt (MW) Spicers Creek wind farm and big battery, says it welcomes the state’s establishment of new Community Benefit Guidelines, too.
“Ensuring all developers are meeting a high standard to address the needs of local communities is key to a successful renewable energy transition,” the company said on Tuesday.
The Clean Energy Council said the new guidelines would play a crucial role in ensuring the state can maintain a reliable electricity supply, as coal exits the system.
“NSW needs to build almost 2 GW of wind and solar projects each year to be on track to meet its state targets and just over 3 GW per year to meet federal targets,” said the CEC’s policy director for energy generation and storage, Nicholas Aberle .
“Getting enough projects built depends on getting enough projects approved, so it is critical that planning processes are well-designed and well-implemented.
“We consider that the published guidelines strike a reasonable balance that should ensure well-designed projects will have a smooth assessment process while providing a clear framework for how impacts need to be managed,” Aberle said.
“The benefit-sharing guidelines also create a predictable framework that guarantees communities will reap significant economic benefits from hosting renewable energy projects, in addition to job creation.”
