Delay and Deny: Renewable projects in approval limbo

It’s never been harder for developers to get approval for large-scale wind and solar projects in Australia. The approvals process for new renewable projects is slow and expensive. There are now just nine utility PV assets under construction in Australia’s National Electricity Market (NEM) – the lowest level since 2017, when the industry was still in its infancy.

There are multiple obstacles. Plans are being delayed and knocked back on the grounds of environmental impact, visual detriment, encroachment on agricultural land and resistance from local communities.

There is a widespread belief that some government departments have active antipathy for wind projects, leading the sector to distrust the planning process.

The position on the ground

According to a 2023 Net Zero Australia study, Australia needs to triple the National Energy Market’s power capacity by 2030 to achieve net zero by 2050.

This will require “a rapid rollout of wind and solar power”. The report notes that decarbonisation will create up to 700,000 direct jobs, mainly across regional and rural Australia.

Requiring more land than fossil fuel generators, renewable projects often impact indigenous and farming communities, where they can meet can meet fierce resistance.

The Clean Energy Investor Group says it is now taking between two and three years for assessments of renewable projects to be completed at the federal level, even as the Albanese government talks up accelerating renewable energy generation over the next six years to double the current level of 40 per cent of the grid.

While state governments handle most of the permissions process, the federal government can override state approvals. In January, Federal Environment Minister Tanya Plibersek vetoed the Victorian Government’s plan to build a hub serving the state’s offshore wind development, claiming irreversible damage to Ramsar-protected wetlands. Their polarised positions reflect a nationwide clash over renewables development.

Why renewable project permits are banking up

According to Michael Brear, Director of Melbourne Energy Institute, the applications process needs to become “much better and faster” to achieve net zero by 2050.

“It’s a very substantial challenge, because we want permissions and conditions to be done properly, especially in regard to environmental and social impacts. Historically we’ve had bigger issues with particular projects. Going forward, though, it’s only going to intensify and widen as more projects are considered.”

Resistance isn’t always predictable, he says.

“People assume that environmental and indigenous groups will always agree, and that renewables will have less ecological impact that fossil fuel generators. This isn’t always so. While there needs to be clear local benefit, not everybody gets the same benefit. It’s tremendously complex.”

David Leitch, Principal of ITK services, agrees that bureaucratic delays are holding up the roll-out of large-scale renewables projects. Flexibility is required to move things along, he says.

“I think the evidence clearly shows that the NSW Planning Department has gone out of its way to stop new wind and solar developments being approved over the last two years. While the reasons might be genuine, it’s taking far too long to process,” he says.

“It’s quite possible for agriculture and renewables generation to co-exist. You can run sheep and cattle on wind farms. A wind farm in Victoria was blocked due to Brolga preservation, yet the zoologist told me Brolgas would be happy to nest beside wind turbines.”

With old generators close to retirement, electricity prices will go up unless we build new supply more quickly, he says.

In May, the NSW government announced it would pay Origin Energy up to $450 million over the next two years to extend the life of Australia’s largest coal-fired power station, Eraring, in a bid to prevent forecast energy “reliability gaps”.

NSW is 2-3 times slower than other states

NSW is the only state to levy application fees based on project capacity and value, which means that a 1.5 GW project attracts a fee of $4.5 million, 150 times the cost of an equivalent project in Queensland.

NSW Department of Planning, Housing and Infrastructure acknowledges frustrations with the approvals process but claim it is improving. 18 renewable energy developments assessments were completed in 2023, compared with seven in 2022.

Currently 29 new renewable energy projects are under assessment by the department. A further 84, including more solar, wind and battery storage projects are in the pipeline for NSW.

Solutions to clear the permissions pipeline

Practical measures are needed to speed up the approvals process, in Leitch’s opinion.

“Renewable energy zones offer scope to streamline the entire planning process. With an underlying masterplan and base environmental area study, assessments for individual projects can be done a lot more quickly,” he says.

“Solar and wind farms offer a wonderful opportunity for regional Australia to get productive projects. With more economic opportunities and professional workforces in country towns, tens of millions of dollars will be channelled into the regions.”

He believes the onus should be on planning departments, rather than making it the applicant’s responsibility to go away and get another survey done. Planners should also have stricter deadlines for project approval.

“Community approval would also be a lot higher if there was more transparency and discussion around outcomes and benefits. Groups like Re-alliance are helping communities to collaborate and get involved in the process of shaping proposals.”

Despite the problems, Brear believes there is cause for optimism.

“We will collectively get much better at processing permits over the next few years. The First Nations Clean Energy Network is doing important work with industry associations and state governments, while environmental groups are working out how to do better and quicker ecological assessments,” he says.

“We need more intensive research, to gather data and develop methods for qualifying and facilitating projects. A more standardised way for different communities to engage with the developmental process is needed.

“By giving local community groups more clarity, they will be able to see and understand the potential benefits for themselves.”

Time will tell if greater consultation and efficiency can be embraced to stop projects falling at the planning approval hurdle!