Renewable Energy Projects in Central West NSW: What Landholders Need to Know

The Central-West Orana Renewable Energy Zone (REZ) is the first REZ declared in NSW, about 20,000 km² centred on Dubbo and Dunedoo, expected to deliver 4.5 GW of network capacity initially, rising to 6 GW by 2038, and attract up to $25 billion in private investment.

Approaches to landholders are coming from a broad mix of parties, in and around the REZ:

1. EnergyCo and its REZ transmission builder ACEREZ (ACCIONA, Cobra, Endeavour Energy);

2. generation and storage developers with REZ access rights, including ACEN, Squadron Energy, Tilt Renewables, Lightsource bp, Pacific Partnerships and Potentia Energy;

3. private solar, wind and battery developers with projects in the region connecting to the existing network;

4. Essential Energy on distribution and sub-transmission easements across the wider region.

At Peacockes Solicitors we act for rural landholders across Central West NSW and help clients understand their rights before entering into any agreement.

If an energy company approaches you

Don't sign anything before getting independent legal and valuation advice. Under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW), and in most private negotiations, your reasonable legal and valuation costs are paid by the acquiring authority or developer.

You may be asked to sign:

1. access and entry agreements;

2. option deeds;

3. transmission, distribution or pipeline easements;

4. solar, wind or battery leases and licences;

5. neighbour agreements;

6. compensation agreements; or

7. compulsory acquisition documents.

Get advice on what rights are being granted, how long they last, restrictions on future use, whether the price is fair, who is responsible for maintenance and rehabilitation, and what happens if the project or your circumstances change.

Easements: transmission and distribution

An easement is a registered property right allowing the operator to construct, access and maintain infrastructure on part of your land. You keep ownership, but the easement is recorded on title and binds future purchasers. Key issues include the position of towers, poles and tracks, impacts on farming operations and who bears the cost of damage, biosecurity and rehabilitation.

How compensation works

Compensation is not a standard offer. Under the Just Terms Act it must reflect market value plus disturbance and other statutory heads, taking into account the size and location of the affected area, restrictions imposed, loss of value to the balance land (injurious affection), and any disturbance costs reasonably incurred as a result of the acquisition. Disturbance costs may include reasonable legal and valuation expenses, as well as financial losses arising from disruption to farming operations or another established use of the land. This may extend to costs associated with relocating, replacing or modifying infrastructure affected by the acquisition.

How we help

Peacockes Solicitors advises rural landholders and farming families on the full range of energy related work, including:

1. transmission, distribution and pipeline easements (EnergyCo/ACEREZ, Transgrid, Essential Energy, APA and private pipelines);

2. solar, wind and battery leases, licences, option deeds and neighbour agreements;

3. Just Terms Act compensation claims;

4. succession, estate planning and intergenerational transfers; and

5. rural property transactions.

If you've been approached about any energy project or acquisition get independent advice before you sign.

Contact Peacockes Solicitors – Dubbo (02) 6882 3133.

Frequently Asked Questions

Do I have to accept the first offer?
No. An initial offer may not reflect the full effect of the acquisition or project on your land, retained property and farming operations. Compensation and commercial terms can be negotiated, supported by independent legal and valuation advice.

Should I sign an option deed?
Not before its terms have been independently reviewed. An option deed may bind the land for several years, restrict its use or sale, and fix commercial terms that do not adequately account for inflation or changes in the project. Particular attention should be given to the option period, extension rights, option fees, indexation, access rights and termination provisions.

What costs will be covered?
In a compulsory acquisition under the Land Acquisition (Just Terms Compensation) Act 1991 (NSW), reasonable legal and valuation costs usually form part of disturbance compensation. In private negotiations, responsibility for professional costs depends on the proposed agreement, although developers commonly offer to meet reasonable costs.