The NSW Government said landowners would be paid $10,000 a year for 20 years for every kilometre of new transmission lines built on their property, with the annual payments indexed to CPI.
NSW Farmers Energy Transition Working Group chair Reg Kidd said while transmission lines were a hot topic for affected landowners, these payments were an important step in recognising the impact energy infrastructure had on farmers.
“These payments are welcomed to deal with the losses of our rural landowners in productivity and amenity, and for the contribution to both our state and national goals of reducing carbon emissions,” Mr Kidd said.
The scheme — the first of its kind in Australia — aims to support landowners and rural communities who host new transmission infrastructure that connects renewable energy to the grid.
It will almost double the average payment landowners currently receive, and the rate of the payments will be calculated in the same way regardless of where a person lives to ensure all landowners are treated equitably under the scheme.
Payments under the scheme are separate, and in addition to, the one-off upfront compensation paid to landowners for the acquisition of transmission easements in accordance with the Land Acquisition (Just Terms Compensation) Act 1991.
While he supported the new payment scheme, Mr Kidd said government and energy companies should still engage with rural communities early and partner with them in building new infrastructure.
Farmers for Climate Action chief executive officer Fiona Davis said the new policy had the potential to help win social licence for the transmission required for renewable energy developments, speed up bringing projects online and provide stable alternative income for farmers.
“Alternative income is so important during times like droughts, or in recovering from floods, which climate change has already brought far too much of,” Dr Davis said.
“This is now the benchmark for transmission line payments in Australia and we urge the Federal Government and all other states to carefully examine this policy.
“We also encourage governments to roll a scheme like this out for all transmission line projects.
“Community support is essential to deliver the thousands of regional jobs these renewable energy projects bring, and a policy like this brings benefits to the local community.
“Farmers who have alternative income during drought keep employing locals and spending money in local pubs, cafes and retail stores.”
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