NSW Renewable Energy Planning Framework commences with immediate effect

Following months of consultation, the NSW Government has released final planning guidelines that come into immediate effect in the assessment of proposed State significant renewable energy projects. The new framework seeks to deliver faster and more consistent planning and assessment decisions as the State works to support the energy transition and meet legislated net zero targets.

Snapshot

• The policy framework that guides the NSW planning and assessment process has been updated for key aspects of the renewable energy sector in NSW, including wind and solar energy, transmission, hydrogen, benefit-sharing and private agreements. 
• The new guidelines address key issues relating to the delivery of renewable energy in NSW, including visual, noise and biodiversity impact, transmission delivery, community contributions, landholder agreements, with a goal of providing greater transparency about how State significant energy development and infrastructure will be assessed.
• The new planning framework commenced on 12 November 2024 and will have practical implications for applicants who are currently assessing the environmental impacts of proposed renewable energy projects, including updated benchmarks for environmental assessment, unless limited exemptions under transitional arrangements apply.
• The changes generally have effect immediately, but some exceptions apply under various transitional arrangements. For example, the new planning framework does not apply to wind energy (excluding development rights) and transmission projects if an applicant has:
  • received Secretary’s environmental assessment requirements (SEARs) before 12 November 2024 and an environmental impact statement (EIS) is lodged before 30 April 2025; or 
  • already lodged an EIS prior to 12 November 2024.
• There are separate transitional arrangements that apply in certain circumstances. For example, guidance on development rights of neighbouring vacant land in connection with wind and large-scale solar energy projects is subject to separate transitional arrangements.
• Applicants of renewable energy projects should carefully review the new policy documents, accompanying technical supplements and other tools, and assess the practical implications of the refreshed policy framework including any opportunities to streamline the approval process and engage with communities on the new assessment expectations.
• Over the next few weeks, we will bring you a detailed analysis of the changes within each of the guidelines and what they mean for applicants of wind, solar, hydrogen and transmission projects in NSW.

New guidance on the delivery of major renewable energy projects in NSW is available now 

The NSW Department of Planning, Housing and Infrastructure (DPHI) has released its Renewable Energy Planning Framework (Framework) for the assessment of State significant renewable energy development and infrastructure in NSW under the Environmental Planning and Assessment Act 1979 (NSW) (EP&A Act).

The Framework follows consultation with the public and industry between 14 November 2023 and 29 January 2024 (we previously reported on the Draft Energy Policy Framework in a blog here) and seeks to: 

• help achieve the transition to renewable energy; 
• support NSW’s legislated net zero targets (read our blog here for further background on NSW’s Net Zero by 2050 target); and 
• secure an affordable supply of electricity for NSW.

The Framework comprises the following new guidelines that will support the NSW planning and assessment process by providing more transparency about how the impact of energy infrastructure will be assessed and managed:

• Wind Energy Guideline (plus associated visual and noise impact assessment technical supplements, and a decommissioning calculator); 
• Large-Scale Solar Energy Guideline (plus associated visual impact assessment technical supplement, and a decommissioning calculator);
• Transmission Guideline (plus associated visual impact assessment technical supplement);
• Hydrogen Guideline; 
• Benefit Sharing Guideline; and
• Private Agreements Guideline. 

The Framework generally applies immediately to a development application (DA) for a State significant renewable energy project unless:

• SEARs were issued before 12 November 2024 and an EIS is lodged before 30 April 2025; or 
• an applicant has already lodged an EIS prior to 12 November 2024.

There are separate transitional arrangements that apply in certain circumstances. For example:

• visual impact assessment requirements for large-scale solar energy projects apply immediately. However, DPHI may afford some flexibility with respect to applying the new proportionate assessment approach; and
• an applicant’s assessment development rights for neighbouring vacant land in connection with wind and large-scale solar energy projects is subject to specific transitional arrangements based on certain criteria, including the location of the nearby land and expected impacts. 

An applicant may choose to apply the Framework immediately by requesting an amendment to the SEARs to reflect the new guidance.

An overview of each new guideline is below. Over the next few weeks, we will explore each of the new guidelines in detail, identifying the key changes applicants should be aware of and opportunities for further reform to streamline the delivery of essential major renewable energy projects.

Wind Energy Guideline

The Wind Energy Guideline supports onshore wind energy projects declared State significant development (SSD) or critical State significant infrastructure (CSSI) both within and outside renewable energy zones (REZs) and should be read in conjunction with the:

• Wind Energy Guideline: Technical Supplement for Landscape Character and Visual Impact Assessment;
• Wind Energy Guideline: Technical Supplement for Noise Assessment;
• Benefit Sharing Guideline; 
• Private Agreement Guideline; and
• Decommissioning Calculator.  

Key aspects of the new guideline address:

• the assessment of network connection works in wind energy DAs;
• community and stakeholder engagement; 
• site selection and project design; 
• assessment issues, including in relation to landscape and visual, noise, aviation safety and lighting, birds and bats, and traffic and transport;
• infrastructure contributions, benefit sharing, and private agreements;
• decommissioning and rehabilitation; 
• waste management and circular design; and
• other issues, including biodiversity, cumulative impacts, and development rights.

The new guideline also confirms that the Minister will consider requests to declare wind energy development as CSSI if it includes a significant energy storage system (e.g. a battery energy storage system (BESS) with 750 MW power capacity and 1,500 MWh or more of useable energy storage capacity).

Large-Scale Solar Energy Guideline

The Large-Scale Solar Energy Guideline introduces minor updates to the existing guideline released in August 2022 to align it with the other parts of the Framework.

The new guideline supports SSD or CSSI solar energy projects both within and outside REZs and should be read in conjunction with the: 

• Large Scale Solar Energy Guideline: Technical Supplement for Landscape and Visual Impact Assessment;
• Benefit Sharing Guideline; 
• Private Agreement Guideline; and 
• Decommissioning calculator. 

The guideline does not apply to large-scale solar energy projects that use other technologies, such as concentrated thermal or lens concentrators, because they are likely to have different site selection and impact assessment issues.

Key aspects of the new guideline address:

• community and stakeholder engagement;
• site selection and project design;
• assessment issues, including in relation to landscape and visual impacts, agricultural land use, and glint and glare;
• infrastructure contributions, benefit sharing and private agreements;
• decommissioning and rehabilitation; and
• other issues, including biodiversity, cumulative impacts and development rights.

Similar to the Wind Energy Guideline above, the new guideline also confirms that the Minister will consider requests to declare large-scale solar energy development as CSSI if it includes a significant energy storage system (see above for examples). 

Transmission Guideline

The Transmission Guideline, together with its supporting Technical Supplement for Landscape Character and Visual Impact Assessment, provides new guidance on the development of major high-voltage transmission projects that are declared as State significant infrastructure (SSI) or CSSI.

Key aspects of the new guideline address:

• community and stakeholder engagement;   
• key assessment issues, including landscape and visual impacts, and biodiversity;
• secondary assessment issues, including agricultural land use, undergrounding, bushfire risk, electric and magnetic fields, and aviation; 
• other assessment issues, including Aboriginal heritage, noise, and traffic and transport; 
• access arrangements and acquisition agreements; and
• strategic benefit payments.

Hydrogen Guideline 

DPHI has also released a Hydrogen Guideline that was not previously released in draft or the subject of public consultation with the Draft Energy Policy Framework.

The Hydrogen Guideline provides new guidance on categorising hydrogen development within the NSW planning system. It includes broad guidance on site selection, cumulative impacts and key assessment issues for consideration when preparing a DA under Part 4 of the EP&A Act or an application to carry out an activity under Part 5 of the EP&A Act.

The guideline applies to various aspects of hydrogen development, including production by electrolysis, storage, distribution, refueling stations and its end-use in electricity generation and as industrial feedstock.

The Hydrogen Guideline summarises the trigger or threshold for the various planning pathways relevant to hydrogen development and notes that future hydrogen development anticipated in NSW ports will be treated differently in the State planning system depending on location.

Key aspects of the new guideline focus on assessment issues, including:

• hazards and risks; 
• site selection; 
• cumulative impacts; and
• other assessment issues, including water management, biodiversity, and traffic and transport.

Benefit Sharing Guideline

The Benefit Sharing Guideline provides practical information on benefit sharing and planning agreements for SSD or CSSI wind, solar, and BESS projects (where the BESS is located on rural zoned land) whether or not they are located within a REZ.
To set a baseline for expected contributions in connection with State significant renewable energy projects, the guideline prescribes the following benefit sharing rates (indexed to the Consumer Price Index) for different types of development:

• wind energy: $1,050 per megawatt per annum;
• solar energy: $850 per megawatt per annum; and 
• stand-alone BESS (i.e. not developed alongside a solar or wind energy project) located in a rural zone: $150 per megawatt hour.

The new guideline does not apply to hydrogen projects, pumped hydroelectric projects, BESS on non-rural zoned land, or transmission infrastructure. 

The new guideline should be read in conjunction with the new Wind Energy Guideline and Large-Scale Solar Energy Guidelines. 

Private Agreements Guideline

The Private Agreement Guideline provides guidance for landowners who are entering into commercial agreements with developers because they are either hosting, or are directly impacted by, SSD or CSSI solar and wind energy projects. 

Key aspects of the new guideline include:

• general guidance on confidentiality, landholder participation in the planning process, biosecurity, compensation, and dispute resolution; and
• additional guidance for landholders hosting infrastructure, including project impacts, use of land for other development, decommissioning, land valuation, and monitoring of environmental impacts.

The new guideline also establishes a requirement for applicants to maintain an agreement register that identifies the landholder’s identification details, type of agreement (landholder or neighbour), any impacts excluded from the agreement, and the duration of the impacts covered by the agreement. The register must be provided to DPHI during DA assessment and maintained over the life of the project. 

Key takeaways 

The full suite of Framework documents is available on DPHI’s website here. 

The Framework is likely to have practical implications for applicants who are currently assessing the environmental impacts of proposed renewable energy projects, including updated benchmarks for environmental assessment.

Applicants of existing or proposed renewable energy projects should carefully review the Framework and seek advice on the practical implications of the refreshed policy framework, including any opportunities to streamline the approval process and engage with communities on the new assessment expectations.

It will take time to determine whether the Framework delivers on its aim to support faster and more consistent planning and assessment decisions for State significant renewable energy development and infrastructure in NSW. 

However, the Framework is a positive step towards a planning process that has clear expectations for industry and communities when assessing State significant renewable projects in NSW. 

Over the next few weeks, we will bring you a detailed analysis of the changes within each of the guidelines and what they mean for applicants of wind, solar, hydrogen and transmission projects in NSW.

If you would like to explore what the Framework will mean for your project, please do not hesitate to get in touch.

By Peter Briggs, Partner, Tom Dougherty, Senior Associate, and Andrew Mahler, Solicitor.