NSW wind farm heads for approval, breaking project drought
NSW is about to approve its first large-scale wind farm in more than two-and-a-half years, snapping a permitting drought that has left the National Electricity Market far behind where it needs to be replacing retiring coal power stations with renewables.
Paris-based Engie last week secured a critical positive recommendation from the NSW Department of Planning and Environment for its proposed 390-megawatt Hills of Gold wind farm at Nundle in the Liverpool Plains region. The project – which is fiercely opposed by some local community groups – has now been referred to the Independent Planning Commission for a final decision, expected in March or April.
The Collector wind farm is one of only two wind farms approved in the past five years in NSW. James Brickwood
The IPC granted conditional consent last Friday for Trina Solar’s 200MW Glenellen solar farm north of Albury in the state’s south, days after it approved the Oxley solar farm and storage project near Armidale, involving a 215MW solar farm and a one-hour battery of 50MW.
But the flurry of approvals barely scratches the surface of what is required to meet the Australian Energy Market Operator’s “step change” scenario to transition to low-carbon energy, experts say.
The pace of project approvals across NSW, Victoria and Queensland is at a seven-year low according to David Dixon, senior power and renewables analyst at Rystad Energy. He puts the pace of the build-out at about five years behind AEMO’s base case scenario and even further behind the build-out envisaged in the Albanese government’s Capacity Investment Scheme.
“The reality is at every step – approvals, financing, construction start commissioning, transmission upgrades etc – we are behind,” Mr Dixon said.
“There needs to be a step change at every stage of development, financing and construction,” he added, voicing concern in particular about wind progress in Victoria and NSW.
The comments come after AEMO chief executive Daniel Westerman last week reiterated that investment is urgent across renewables, firming power and transmission to replace coal power stations, which are all expected to be closed by 2038.
The closure of AGL Energy’s Liddell coal plant last April has already contributed to a tighter supply-demand balance in NSW evident when hot weather sends power use soaring. AEMO last Thursday came close to calling on emergency reserves to reduce the risk of rolling blackouts in NSW as the mercury headed towards 40 degrees.
Still, in a timely development heading into peak summer, EnergyAustralia on Monday advised it has completed test firing of its new $300 million gas power station in the Shoalhaven region, which is set to commence full operation in early 2024.
The start-up represents only a slight delay in the 316MW generator, where construction was impacted by contractor Clough falling into administration.
Engie’s manager of delivery and engineering in Australia, Leigh Newbery, said he was confident of a decision from the IPC which would allow detailed design to get underway ahead of construction in 2025.
“We’ve done a lot of work to achieve this interim milestone, and we’re very much looking forward to the opportunity of delivering a quality project that supports the electrical grid and creates economic activity in Nundle and the New England region.”
The project has been slimmed down to 47 turbines from 64 and its layout has been amended to reduce vegetation clearing, but it is still opposed by Tamworth Regional Council and some community groups.
But Mr Newbery said the recommendation from the department was a positive sign for the transition to renewables given the project is at the forefront of new wind farm developments in NSW.
“It shows the maturity of the industry, community and approval authorities in addressing issues that are identified throughout the planning process.”
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