Price set for industry to pay regional towns in an effort to green-light WA wind power

New guidelines to ensure local communities benefit from large-scale wind and solar projects exclude transmission infrastructure that will be needed to connect them to WA’s power grid. The State Government is trying to avoid the battle that’s erupted in Victoria and New South Wales between some regional towns and developers over the use of agricultural land for renewables. It rejected performance-linked contributions as too uncertain, in favour of a set price. The tiered ‘benefit value’ for developers to pay each year will be calculated on their maximum possible output, ranging from $15,000 for a 10 megawatt wind project to $1.75 million for a two gigawatt project, or $750 per megawatt for solar projects. For the 103 megawatt expansion of the Warradarge wind farm, that will add 30 new turbines near Eneabba in the State’s mid-west, it would amount to $103,000 per year. Energy Minister Amber-Jade Sanderson says it strikes a balance between community and industry. “Regional communities are at the heart of our energy transition, and they must be able to benefit from new energy infrastructure in a meaningful and lasting way,” she said. “This guideline ensures that, as WA builds the infrastructure we need to deliver our sustainable energy future, we are also supporting the communities that host new renewable energy projects.” The guidelines won’t apply to projects that are already operational, or not connected to WA’s south-west interconnected system, and it won’t apply to transmission infrastructure. A SWIS demand assessment updated in June last year estimated about 4,000 kilometres of new high-capacity transmission lines will be required over the next 20 years. The Government said transmission is not included because it is planned at a “whole of system level” and applying an additional community benefit requirement would flow through to costs for consumers. In Victoria, farmers have launched angry protests and have been threatened with fines over plans to build 80-metre towers, as part of the 240-kilometre VNI West transmission line, on - or near - their land. Community benefits can be paid through development of local infrastructure, eco-tourism opportunities or sponsorship of local community groups, sports or events. The Government’s plan includes flexibility for developers to offer “bespoke benefits” beyond the guidelines, to get locals on board. Local councils must approve any spending that will require ongoing maintenance, like pools or sports facilities. Developers will still be required to meet current local content, environmental and native title rules. A pilot program will be launched to fine-tune the model for community benefits plans that will be negotiated case-by-case by each area’s regional development commission, that will also manage the allocation of funds. The plan calls WA’s energy transition an “exciting opportunity to deliver real and lasting benefits”, but the Government has openly admitted it needs to convince locals to back it. In Collie in January, Ms Sanderson called community support for large wind projects “crucial” to meet the Government’s target of turning off coal-powered plants by 2030. “There are a number of interdependencies and challenges around wind. I don’t think community opposition is one of them,” she said. “I think community education is actually something that we can do better. “There is a small number of people who just object, in general, to renewable energy, whether it’s wind, whether it’s solar, whether it’s batteries, whether it’s transmission lines going across the countryside. “But by and large, the feedback that I get from the community is they more have questions about it.” Australia’s energy market regulator has warned a gap of almost 2GW is looming in WA by 2033, but said at least 507MW of “probable projects” are anticipated.