EPBC delay adds to hurdles facing biggest winner of Capacity Investment Scheme auction

The federal government’s environment office has delayed a decision on Acen Australia’s Valley of the Winds project, as the state-approved project is taken to court. 

Environment minister Murray Watt has another eight days after 21 August to make a decision on the project, which has been in the EBPC pipeline since 2020 when federal planners confirmed it needed commonwealth oversight. 

“The extension was provided to ensure the department has adequate time to consider relevant information on whether or not to approve the proposed action,” a spokesperson from Watt’s office says.

The new deadline is to 2 September.

Acen Australia won final planning approval in July for the 943 megawatt (MW) project in the Central Western Orana (CWO) renewable energy zone (REZ), and a 320 MW, two-hour big battery.

Significantly, it is the biggest project to win and underwriting agreement under the federal government’s flagship Capacity Investment Scheme, and its hurdles highlight the difficulties in getting large wind and solar farms delivered on time to meet the 2030 renewables target.

But although the project owners won state approval from the Independent Planning Commission (IPC), New South Wales’ arbiter of last resort if more than 50 objections are made, that was followed by a lawsuit from a deep-pocketed neighbour. 

While Marshall Baillieu – cousin to former Victorian premier Ted – is not disclosing the terms of the suit, he railed against the project during an IPC hearing. 

The 88-year-old claimed the 250m tall turbines would overshadow his property Tongy Station, would be problematic for an airstrip, and would be too close to a house he still plans to rebuild after it was burned down in 2017.

Google Maps images show the homestead is a roofless shell, surrounded by mown lawns.

The IPC said the Valley of the Winds plans and mitigation proposals were within its tolerance for Baillieu’s complaints, and did not address the specific issue of the property’s formerly historic homestead.

It’s unclear if new rules preventing so-called “phantom dwellings” from derailing renewables projects apply to the homestead.

These state that from 12 November 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.

But while the EPBC delay will no doubt be frustrating — Renew Economy did not hear back from Acen Australia before publication — work on the project will be stalled anyway by the legal action.

Acen Australia will be familiar with the despair of another EBPC delay, as it is up to its seventh period of extra time with the 900 MW Robbins Island project. 

Delays in the EPBC process is one of the biggest pain points for developers. 

The Clean Energy Investor Group (CEIG) said last year the number of days developers spent waiting was blowing out more every year, and potentially turning away investments. 

This week the Productivity Commission said putting in place some standards to give project owners and developers an idea as to what is expected and some timelines would be very useful to tidying up the two decade-old process.

• * This article has been updated to include comments from Murray Watt’s office.