New South Wales Entices Landowners to Host Transmission Wires With Significant Pay Rise

Power lines connected to the Snowy hydro electric scheme are seen running through Kosciuszko National Park, in New South Wales, Australia, on August 23, 2020. Brook Mitchell/Getty Images

The New South Wales (NSW) government will offer regional landowners hundreds of thousands of dollars to host transmission wires on their properties as part of a plan to further renewable energy developments in the Australian state.

On Oct. 25, the NSW government announced the Strategic Benefit Payments Scheme, which is designed to support the changes in the state’s power grid as it connected to more renewable energy sources.

Under the scheme, the NSW government will pay landowners $200,000 (US$126,000) for each kilometre of transmission wire hosted on their land. The payment will be made in annual instalments over 20 years, indexed to inflation.

Scheme First of its Kind

NSW Deputy Premier Paul Toole said the scheme would be the first of its kind in Australia and noted that building new transmission infrastructures was vital to connecting renewable energy sources to the grid.

“NSW has the most ambitious renewable energy policy in the nation, which is needed to replace the state’s ageing coal-fired power stations and build a clean energy future for NSW,” he said in a statement.

“Supporting landowners and regional communities who host this infrastructure will help us build the network we need in time to ensure energy security, supply and affordability for families across NSW.”

Sheep graze in front of wind turbines on the outskirts of Canberra, Australia, on Sept. 1, 2020. David Gray/Getty Images

Meanwhile, NSW Treasurer and Energy Minister Matt Kean touted the scheme as a “huge win” for landowners, saying it would maximise the economic benefits brought about by new infrastructure to strengthen regional communities.

“This is a huge win for landowners across NSW that will almost double the average payment they currently receive,” he said.

“The rate of the payments will be calculated in the same way regardless of where you live to ensure all landowners are treated equitably under the scheme.”

Response From the Community

While community group Stop, Rethink HumeLink Towers welcomed the NSW government’s renewables policy, it criticised the scheme, citing significant risks to the landscape and the environment as transmission lines ran throughout regional areas.

Michael Katz, a Gurrundah resident, said the 300 homeowners in the small town northeast of Canberra wanted power lines to be built underground.

“[Aerial firefighting craft] can’t fly anywhere near them–they’re just too dangerous. Firefighters can’t even work near them if they’re switched on,” he said in comments obtained by AAP.

The community was also concerned about the possibility of fires caused by transmission towers, as they pointed to the enormous wildfire Dixie Fire in California, which resulted from a transmission line igniting a tree.

Nevertheless, the scheme received support from Farmers for Climate Action, which represented over 6,000 farmers across Australia.

The organisation said the project was likely to fast-track the delivery of renewable energy in NSW and provide farmers with a stable source of income.

“Alternative income is so important during times like droughts or in recovering from floods,” Farmers for Climate Action CEO Fiona Davis said.

“Farmers who have alternative income during drought keep employing locals and spending money in local pubs, cafes and retail stores.”