Minns govt removes phantom dwelling obstructions in bid to hasten energy transition

The change is the centrepiece tweak of NSW’s planning laws, which will win favour with renewable energy developers, but it threatens to inflame tensions with some regional communities.

The NSW government has removed the capacity of landowners to block renewable energy projects, while new limits for how far wind turbines and solar farms must be setback from dwellings have been imposed – as the state moves to accelerate the roll out of zero emission projects in a bid to meet its ambitious transition targets.

The changes – which The Australian revealed earlier this year – are the centrepiece tweaks of NSW’s planning laws, which will win favour with renewable energy developers, but it threatens to inflame tensions with some regional communities.

So-called phantom dwellings had been a popular tactic used by opponents to curtail proposed wind farms, particularly. Previous rules allowed landowners to inform wind developers that they intended to build a dwelling on their property in the future. These would typically be strategically located nearby to proposed wind turbines.

Developers would then be forced to remove the proposed turbines to comply with distance rules and if enough ‘phantom dwellings’ were intimated – developments would often become unviable.

In a bid that closes that avenue, NSW said that if a planning application had not been lodged before November 12 – it will not be considered.

NSW also defined how far wind turbines will need to be setback from homes. The distance scales depending on the height of the turbine. But NSW said that a 240m high turbine would have to be set back 1.5km from a dwelling if it is completely visible.

Should the turbine be smaller or naturally obstructed, the setback limits will be reduced.

Industry figures noted existing turbines are much smaller than 240m, but technology is rapidly evolving, so the limit future-proofs guidelines.

Although well received by energy officials, the changes are unlikely to be universally approved by regional communities – which will bear the brunt of the NSW’s energy transition.

In a bid to sway sceptical regional communities, NSW has also moved to heighten financial sweeteners. Landowners who host a wind turbine should receive $1,050 per megawatt each year, while those with solar projects should receive $850 per megawatt per annum. The reward for hosting a battery is much smaller, at $150 per megawatt hour.

Blue Grass Solar Farm.

NSW Planing Minister Paul Scully says the new rules provide the certainty that communities and developers need.

“It’s vital the planning system actively supports the energy transition and delivers timely approvals on development applications,” he said.

“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.”

The changes have long been advocated for, with industry figures warning that NSW’s target of at least 12GW of new renewable energy generation and 2GW of long-duration storage by 2030 is at risk.

Dmitry Danilovich, development director at ACCIONA Energia, one of Australia’s largest renewable energy developers, said the changes would provide clarity to developers and communities.

“NSWs’ wind energy guidelines at face value provide improved planning certainty and clarity that industry and communities have been seeking to facilitate a sustainable coexistence across the state’s regions,” said Mr Danilovich.

“The planning guidelines implement appropriate guardrails so that communities will have confidence that renewable energy is being deployed responsibly and methodically, as we work towards the 2030 target.”

NSW is under mounting pressure to accelerate its energy transition. NSW has earmarked six areas where it plans to concentrate large-scale zero-emission projects to avoid unnecessary transmission construction, but several have been identified by industry – particularly the New England REZ – as facing substantial local opposition.

The South West REZ is seen as the most appealing as it is sparsely populated, minimising the possibility of planning roadblocks. The Australian in August revealed how the country’s largest renewable developers – Neoen, Origin Energy, Acciona Energia, Squadron Energy and Iberdrola – have zeroed in on the South West REZ, stretching from Murrumbidgee in the east to Buronga in the west.

Earlier this year, NSW was forced to extend the lifespan of the state’s largest coal power station, Origin Energy’s Eraring after accepting that it did not have adequate replacements of renewable energy projects to allow it to close.

Eraring will now stay open until at least 2027 but could remain online until 2029 if NSW continues to struggle to bring new supplies online.

Originally published as Minns govt removes phantom dwelling obstructions in bid to hasten energy transition