A New South Wales Upper House committee has released the final report from its two-year inquiry into the impact of Renewable Energy Zones (REZs), recommending a series of reforms aimed at improving how the zones are planned, coordinated and delivered across rural and regional communities.
The inquiry by Portfolio Committee No. 4 visited each of the state’s five Renewable Energy Zones, including Central-West Orana, New England, Hunter-Central Coast, Illawarra and the South West, before handing down a report containing 25 findings and 16 recommendations.
The committee found Renewable Energy Zones remain an essential part of New South Wales’ energy transition but concluded their rollout should be accompanied by stronger coordination, more meaningful community engagement and greater support for the communities hosting the infrastructure.
Committee Chair Hon Mark Banasiak MLC said the inquiry focused on the experiences of regional communities as the energy transition continues.
“The energy transition should happen with communities and not to them.”
Common issues across every Renewable Energy Zone
While acknowledging that each Renewable Energy Zone faces different circumstances, the committee found many of the challenges raised by communities were common across all five regions. These included coordination between government agencies, consultation processes, cumulative impacts, pressure on local infrastructure and services, and how the benefits of Renewable Energy Zone development are shared.
Among its findings, the committee concluded that improvements are needed to the planning framework supporting Renewable Energy Zones and found that EnergyCo’s coordinating role should be strengthened, particularly in relation to cumulative impact management, sequencing of development and coordination of infrastructure and services. The report also found local councils have been left managing increasing demands on local services and infrastructure without sufficient authority, resources or strategic direction.
The committee further found that consultation processes undertaken by government agencies, EnergyCo and renewable energy developers had not always enabled affected communities to meaningfully influence project outcomes.
Recommendations focus on delivery and accountability
The report recommends expanding EnergyCo’s statutory responsibilities and introducing formal performance and accountability requirements, including public reporting on cumulative impacts, mitigation measures and independent audits of its coordination role.
It also recommends establishing a coordinated Renewable Energy Zone delivery framework across government agencies, providing recurrent funding for local councils within Renewable Energy Zones, expanding community benefit and compensation programs, improving consultation processes and reviewing land acquisition arrangements, dispute resolution and Social Impact Assessments.
The committee has also recommended additional support for Local Aboriginal Land Councils involved in renewable energy negotiations and called on the government to reconsider mandatory decommissioning bonds for new renewable energy developments.
Next steps
Mr Banasiak said the inquiry may have concluded, but the transition underway in regional New South Wales would continue for many years.
“The government must be accountable for this significant transition that is being experienced by many rural and regional communities throughout New South Wales.”
The committee has recommended the NSW Government publish a detailed implementation plan within three months for any recommendations it accepts, identifying lead agencies, delivery timeframes and measurable performance measures, followed by progress reports to Parliament every six months. If adopted, the recommendations would shape the next phase of Renewable Energy Zone delivery for government agencies, infrastructure proponents and regional communities across New South Wales.
