Landholder call: wind farm owners must pay clean-up bill before construction

Victorian landholders leasing their properties to wind farm operators fear they could be left with a multimillion-dollar clean-up bill.

The cost of decommissioning wind farms can run into millions of dollars at the end of their 20-30 year lifespan.

Landholders and the Victorian Opposition are calling on wind farm operators to invest in rehabilitation bonds to cover the multi-million cost of dismantling 230m tall turbines and rehabilitating farmland once they have reached the end of their 20 to 30 year lifespan.

Victoria’s quarry and mining industry already have to buy rehabilitation bonds, prior to any project going ahead, under the Mineral Resources (Sustainable Development) Act 1990.

But to date the state’s booming wind farm sector has avoided the issue, simply committing to decommissioning wind farms under landholder lease agreements.

Specialist wind farm litigation lawyer Dominica Tannock said ownership of wind farms was constantly changing, with many now in foreign hands, making it difficult for farmers to enforce decommissioning clauses in their leases.

“Industry needs to put its money where its mouth is,” Ms Tannock said.

“If it’s committed to responsible end-of-life commissioning, like it says it is, then demonstrate how that will be achieved,” she said. “Otherwise, when it all goes pear-shaped, host landowners will be left mopping up the expensive mess left behind by phantom owner/operators.

Victorian Opposition Resources spokesman Richard Riordan said establishing mandatory rehabilitation bonds would “send a signal to the market that end of life in this industry will not be the taxpayer’s responsibility”.

“Victoria cannot risk carrying a multibillion-dollar clean-up bill for an industry, which is supposed to be our environmental saviour.”

One Stockyard Hill livestock producer with turbines on his property, who did not wish to be named, said bonds were a brilliant idea.

“Even though our contracts state they are to remove them (the turbines), a bond would guarantee it would be removed, just like them having to use bonds before they start mining,” the producer said.

“An alternative might even be a levy on the power produced by the wind turbines on your property to be set aside.”

The wind farm sectors lobby group – the Clean Energy Council has backed away for supporting rehabilitation bonds.

“At this stage, it is not clear that rehabilitation bonds are needed to ensure the successful decommissioning of wind farms,” CEC generation and storage director Nicholas Aberle said.

“What we do know is that end-of-life management is an increasingly important issue, and many of our members have already committed to responsible end-of-life decommissioning or refurbishing their wind projects through the Clean Energy Council’s Best Practice Charter.

“We are firm of the belief that decommissioning needs to be done well – whether rehabilitation bonds are a part of that would require proper consultation with our members and key stakeholders.”

The Victorian Government is creating six renewable energy zones across the state, which will see even further investment in wind farms.