LEGISLATIVE COUNCIL General Purpose Standing Committee No. 5 Rural wind farms Ordered to be printed 16 December 2009 according to Standing Order 231 Report 31 - December 2009 LEGISLATIVE COUNCIL Rural wind farms New South Wales Parliamentary Library cataloguing-in-publication data: New South Wales. Parliament. Legislative Council. General Purpose Standing Committee No. 5 Rural wind farms / General Purpose Standing Committee No. 5. [Sydney, N.S.W.] : the Committee, 2009. – XXIV, 208 p. ; 30 cm. (Report ; no. 31) Chair: Ian Cohen, MLC. “December 2009”. ISBN 9781921286513 1. Wind power plants—Environmental aspects—New South Wales. 2. Wind power—New South Wales. 3. Greenhouse gas mitigation—New South Wales. I. Title. II. Cohen, Ian. III. Series: New South Wales. Parliament. Legislative Council. General Purpose Standing Committee No. 5. Report ; no. 31 333.92 (DDC 22) ii Report 31 - December 2009 GENERAL PURPOSE STANDING COMMITTEE NO. 5 How to contact the Committee Members of the General Purpose Standing Committee No. 5 can be contacted through the Committee Secretariat. Written correspondence and enquiries should be directed to: The Director General Purpose Standing Committee No. 5 Legislative Council Parliament House, Macquarie Street Sydney New South Wales 2000 Internet www.parliament.nsw.gov.au/gpsc5 Email [email protected] Telephone 9230 2976 Facsimile 9230 3416 Report 31 - December 2009 iii LEGISLATIVE COUNCIL Rural wind farms Terms of reference That General Purpose Standing Committee No 5 inquire into and report on the social, environmental and economic costs and benefits of rural wind farms, and in particular: 1. The role of utility-scale wind generation in: a. reducing greenhouse gas emissions generated by electricity production b. producing off peak and base load power. 2. Locating rural wind farms to optimise wind resource use and minimise residential and environmental impacts. 3. The impact of rural wind farms on property values. 4. Mechanisms for encouraging local ownership and control of wind technology. 5. The potential role of energy generated by rural wind farms in relation to the Australian Government’s proposed Renewable Energy Target. 1. Any other relevant matter.1 These terms of reference were self-referred by the Committee on 24 June 2009. 1 LC Minutes No. 110, 1 September 2009, Item 34, p 1303 iv Report 31 - December 2009 GENERAL PURPOSE STANDING COMMITTEE NO. 5 Committee membership Mr Ian Cohen MLC The Greens Chair The Hon Rick Colless MLC The Nationals Deputy Chair The Hon Robert Brown MLC The Shooters Party The Hon Tony Catanzariti MLC Australian Labor Party The Hon Charlie Lynn MLC Liberal Party The Hon Lynda Voltz MLC Australian Labor Party The Hon Helen Westwood MLC Australian Labor Party Report 31 - December 2009 v LEGISLATIVE COUNCIL Rural wind farms Table of contents Chair’s foreword xi Executive summary xiii Summary of recommendations xx Acronyms xxiii Chapter 1 Introduction 1 Terms of reference 1 Conduct of the Inquiry 1 Submissions 1 Public hearings 1 Site visits 2 Report structure 2 Chapter 2 Background 5 What is wind energy? 5 Renewable energy 7 The global wind energy industry 7 Wind energy in Australia 8 The Australian electricity supply industry 10 Australian electricity markets 12 Renewable energy targets 13 Wind farm guidelines 14 Best Practice Guidelines for Implementation of Wind Energy Projects in Australia 14 National Wind Farm Development Guidelines 15 NSW Planning and Assessment Guidelines for Wind Farms 16 Common arguments for and against wind farms 16 Chapter 3 Wind energy in NSW 19 Why wind farms? 19 Market ready technology 19 Contribution to the electricity mix 20 Reduce greenhouse gas emissions 20 Investment opportunities 21 Abundant wind resources 21 Price competitiveness 22 The ‘clean energy revolution’ 23 Renewable energy precincts 23 vi Report 31 - December 2009 GENERAL PURPOSE STANDING COMMITTEE NO. 5 Reclassification as critical infrastructure 26 Overview of the policy and planning framework 27 Environmental planning instruments 27 Which assessment and approval process applies? 28 The Part 3A environmental assessment and approval process 29 Existing and proposed wind farms in NSW 31 Chapter 4 Wind power and the electricity market 35 Base load power 35 Intermittency and back-up 37 Current electricity network 40 Network connection 43 Committee comment 46 Chapter 5 Planning, policy and legislation 49 Wind farm policy and legislation 49 Development Control Plans 51 Committee comment 53 Noise 54 Regulations and guidelines 56 Committee comment 63 Wind farm setback 65 Committee comment 67 Renewable energy precincts 69 Committee comment 72 Decommissioning 72 Financial security of decommissioning 75 Committee comment 75 Environmental assessment 76 Committee comment 79 Compensation 79 Committee comment 83 Local ownership 83 Committee comment 85 Chapter 6 Environmental impact 87 Report 31 - December 2009 vii LEGISLATIVE COUNCIL Rural wind farms Greenhouse gas emissions 87 Wind farm construction 87 Wind farm operation 89 Committee comment 93 Biodiversity 94 Birds and bats 96 Committee comment 101 Other concerns 103 Bushfire risk 103 Landscape and cultural heritage 105 Chapter 7 Health and social impact 111 Noise concerns 111 Influence of terrain and meteorology on noise 113 Frequency of sound 115 Committee comment 117 Vibroacoustic Disease 118 Committee comment 119 Wind Turbine Syndrome 119 Committee comment 121 Noise perception and annoyance 121 Committee comment 123 Well-being 123 Committee comment 125 Shadow flicker 125 Committee comment 128 Safety of wind farms 128 Committee comment 130 Committee conclusions 130 Chapter 8 Economic considerations 133 Employment 133 Committee comment 136 Impact on property values 137 Committee comment 140 Impact on local industries 141 Committee comment 146 viii Report 31 - December 2009 GENERAL PURPOSE STANDING COMMITTEE NO. 5 Community fund 147 Committee comment 149 Subsidies and incentives 149 Committee comment 151 Lease arrangements with landowners 151 Committee comment 154 Concluding comments 155 Chapter 9 Community consultation 157 Concerns about community consultation 157 Developer behaviour 163 Current consultation requirements 164 Director-General’s Requirements 164 Auswind industry best practice guidelines 165 Draft National Wind Farm Development Guidelines 167 Improving community consultation 168 Committee comment 169 Appendix 1 Submissions 171 Appendix 2 Witnesses 176 Appendix 3 Site visits 179 Appendix 4 Tabled documents 181 Appendix 5 Minutes 183 Appendix 6 Dissenting statement 207 Report 31 - December 2009 ix LEGISLATIVE COUNCIL Rural wind farms Tables and figures Figure 2.1: General structure of a wind turbine 6 Table 2.1: Jurisdictional breakdown of wind farms in Australia (October 2009) 9 Table 2.2: Common arguments for and against wind farms 17 Figure 3.1: Renewable Energy Precincts in NSW 25 Figure 3.2: Assessment process for projects under Part 3A of the Environmental Planning and Assessment Act 1979 30 Table 3.1: Approved and proposed wind farm developments in NSW 32 x Report 31 - December 2009 GENERAL PURPOSE STANDING COMMITTEE NO. 5 Chair’s foreword The Inquiry into rural wind farms has provided an opportunity for the Committee, as well as communities, industry and government agencies, to consider the development of rural wind farms across NSW. It has been challenging and rewarding to investigate the many issues surrounding the development of wind farms in NSW. As a readily available and commercially deployable energy generation technology wind farms have an important role in Australia’s 2020 Renewable Energy Target. Wind farms are a central component in Australia’s developing clean energy infrastructure and portfolio, essential to addressing the challenges of anthropogenic climate change and energy security. However, during the investigation of the Committee, significant community angst and concern about the establishment, project design and monitoring of rural wind farms became apparent. NSW has recently witnessed many instances where local communities have opposed large scale residential, commercial or industrial developments. The basis of opposition varies significantly, but the one constant justification appears to be a concern that particular developments alter the very character of the community. Rural wind farms, like all other developments requiring approval under the Environmental Planning and Assessment Act 1979 (NSW) are not immune from public opposition. Not all people marvel at the graceful but imposing symbols of alternative energy. To some, rural wind farms are ‘environmental statues of liberty’, a step away from carbon intensive coal fired power electricity generation. To others rural wind farms are a noisy and unsightly blot on a sculptured natural landscape. Beyond the personal, subjective views on the relative merits of rural wind farms, the Inquiry had to wrestle with the problem of systemic deficiencies inherent in the NSW planning framework aggravating community concerns about rural wind farms. The legislative requirements currently in place have the potential to leave local communities disenfranchised and effectively erodes community support for the environmental imperatives central to renewable energy targets. The recommendations of the Committee reflect a partial way forward to address a more general community discontent with the environmental planning and assessment framework in NSW and in particular, processes under Part 3A of the Environmental Planning and Assessment Act. Considering