‘Poor planning’ puts NSW projects at risk

EnergyAustralia has warned the IPC risks being dominated by special interest groups.

NSW Planning Minister Rob Stokes.

Power giant EnergyAustralia has savaged NSW’s poor planning processes and warned the Independent Planning Commission risks being dominated by special interest groups, potentially damaging the plight of major gas and coal projects in the state.

Amid a government ­review into the future of the powerful IPC, EnergyAustralia hit out at NSW’s planning procedures as an area of weakness, citing its experience in the controversial Narrabri coal-seam gas project and coal mines supplying its Mt Piper coal plant that supplies up to 15 per cent of the state’s electricity.

“Unfortunately planning processes have made NSW a difficult place for investment because of the inconsistent and complex planning regulations,” Energy­Australia’s enterprise executive, Chris Ryan, said in a submission — written before this weekend’s IPC review announcement — on the sustainability of energy supply and resources in NSW.

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“We have experienced, first-hand, poor planning outcomes through our involvement in the Narrabri gas project, the Coalpac mines and the Springvale expansion project. Poor planning processes in NSW are affecting NSW energy market outcomes.”

The power retailer and producer also took aim at the IPC, questioning its outsized influence in major decisions affecting the state’s energy security.

“NSW’s planning legislation is predicated on delegated decision making to the Independent Planning Commission where there are more than 25 submissions ­received.

“In practice it provides a platform for localised or special interest groups which can overcome considerations of economic criteria, including regional NSW employment, state-wide energy security, local and state economic issues and downstream consumer price impacts.

“EnergyAustralia argues that strategic energy projects, where energy security and consumer price outcomes are critical for the state of NSW, should be ­determined by the Minister for Planning following IPC review if warranted. It seems extraordinary for the IPC to make decisions inextricably related to complex portfolio matters when it is the Ministers who will face public accountability for energy security and price matters.”

The tough rhetoric by one of the nation’s biggest integrated ­retailers and producers follows the decision by Planning Minister Rob Stokes to launch a two-month review into the “purpose and structure” of the IPC, including a health check into its role as a referee for planning decisions.

The review was triggered after the IPC approved the Rix Creek coal mine this month before public submissions had closed, and follows the Bylong coal mine being rejected by the state’s planning commission because of “problematical” concerns on climate change and fears over long-lasting groundwater and agri­cultural damage. Energy­Australia and Santos are hoping they can win long-sought approvals for their $3bn Narrabri gas project after NSW Premier ­Gladys Berejiklian signalled a planning decision had been pushed out to early next year, with her focus on making the right call for the state’s communities.

The energy producer has been frustrated over the long-winded regulatory hurdles, calling for a clear timeline and arguing the ­development could help ease the tight east coast market by providing up to half the state’s gas needs.

Santos submitted its environmental impact statement for Narrabri in February 2017 to the NSW Department of Planning and Environment, which is reviewing the project before it proceeds to the IPC.

EnergyAustralia is also working through coal supply problems at its Mt Piper power generator in the state as these have cut output levels and the number of coal mines supplying the plant have been reduced from six to just one, the Springvale Colliery.

The power company said the planning issue could spell problems during peak summer periods of demand.

“EnergyAustralia remains concerned that current low stockpile levels combined with limited alternate supply coal delivery ­options may still pose a threat to NSW’s electricity supply over summer in some circumstances,” the company said.

“We believe going into summer with minimal coal reserves is risky as some peak demand ­scenarios require prolonged ­generation operation beyond which coal can be progressively delivered.”

The NSW Minerals Council said the review must deliver changes needed to restore confidence in the planning system ­ensuring investment and jobs are not lost to the state.

Council chief executive Stephen Galilee said: “The IPC’s current role in the planning system has meant ­important decisions on jobs and investment have been taken away from the NSW Government and instead left up to an unelected part time panel that is not bound by NSW Government policy.

“This has led to significant ­uncertainty and inconsistency in assessment outcomes, costing jobs and investment for NSW, as seen in recent decisions on the Bylong and Dartbrook projects.”