Wind developer signs community benefit deals worth up to $160m to end stalemate over called-in projects

The UK-based Cubico Sustainable Investments says has signed deals for what could be up to $160 million in community benefits for its two called-in wind projects in Queensland, a sum of cash that could make it very difficult for the planning minister to deny them.

The developer has signed community benefits agreements for both the 700 megawatt (MW) Marmadua wind and battery project and Middle Creek’s 1.3 gigawatt (GW) of wind and 800 megawatt-hour (MWh) battery with the Western Downs regional council.

Queensland deputy premier and planning minister Jarrod Bleijie called in the two projects in June last year, halting their progress – despite previous planning approvals – and subjecting them and a range of other wind and battery projects to further scrutiny.

In a shock move, he cancelled the already-approved Moonlight Range wind project. But the two Cubico projects have been stuck in the call-in queue as the developer revised the development applications to fit strict new rules for wind and solar and later for battery developments. 

Both projects are located in the federal electorate of Maranoa, whose federal MP, the former Nationals leader David Littleproud, has called on Bleijie to call in and cancel another wind project, Tarong West.

Cubico intends to resubmit plans for the Marmadua project in the next few weeks, but still has work to do on the bigger Middle Creek proposal before doing the same.

Western Downs’ new rivers of gold

The two agreements cover a laundry list of community and council wishes, from funding more places for renters to live to paying for critical water systems.

The payments start at $1.485 million from the Middle Creek project and $855,000 from Marmadua, or an annual windfall of up to $2.34 million.

The payments are indexed to consumer pice inflation (CPI) however, which is how the total could be as high as $160 million at the end of the projects’ 30 year life span.

But this is only if the two projects make it through the planning process unscathed.

More likely is that the total size of the wind projects could be scaled down as the design is refined and to fit with government strictures, which will mean lower payments for the council, which has set a rate of $1050/MW for wind projects and $150/megawatt-hour for batteries.

A statement from Cubico and the council say sponsorship and education cash will begin to flow after the state approves either project, and funding for council and community infrastructure will start on construction. 

The agreements detail a range of projects that locals and council want to see over time, from road upgrades to better phone coverage. 

The top priority for the Marmadua project fund is to finish a bore at Tara and upgrade a desalination plant there. 

Both agreements promise investments in new housing for locals, and improving local health services.

Much of the money from the Middle Creek benefits fund is to be put towards building an effluent scheme for the town of Wandoan. It will also sponsor visiting medical specialists and more childcare places. 

“The social impact assessments for Middle Creek and Marmadua included community input and consideration of local and regional priorities,” said Cubico country head David Smith.

“Those findings have helped shape the priorities reflected in the agreements.”

Seven deals signed

The Western Downs regional council is no stranger to energy projects, after the coal seam gas boom reshaped its economy. 

It was one of the first councils to organise what it wanted from community benefits agreements, after the state mandated them, and has now signed seven deals with six developers.

These cover four wind projects and three standalone batteries. 

Western Downs Regional Council mayor Andrew Smith calls the area the “energy capital” of the state.

“It’s important that when energy developments are proposed in our region, our communities share in the benefits they help create,” Smith said.

“The best outcomes happen when industry, council and community work side-by-side, and these agreements demonstrate what’s possible when that approach is put into practice.”

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