The funding has been pledged by Origin Energy, which recently acquired the Yanco Delta Wind Farm from Virya Energy.
The contribution is part of a Voluntary Planning Agreement (VPA) with Edward River Council.
Another $5 million development contribution has been pledged for Murrumbidgee Council, as the project straddles the border of both councils.
Murrumbidgee has already announced its contribution would be used to build a new medical centre in Jerilderie.
Edward River Council has not yet indicated what its share may be used for.
Funds from the contribution are to be used for the purpose of providing community infrastructure with the council area.
Council has highlighted that $1 million of the contribution must be for community infrastructure solely benefiting the indigenous community.
It has started discussions with the Aboriginal Liaison Committee, which is expected to put forward proposals.
In a report to council, interim CEO Gary Arnold said any expenditure of the contribution would be in line with council strategic plans.
“It is important that large scale developments, such as wind farms, contribute back to the community and that council has the opportunity to be involved with this process,” he said in the report.
“Expenditure of the revenue from developer contributions needs to be managed in line with adopted master plans and strategic documents, rather than used for asset renewal.”
Origin’s head of social performance Jim Belford thanked councils and the project’s previous owners, Virya, for their work in establishing the VPAs.
“As the new owners of the Yanco Delta Wind Farm, Origin looks forward to building on the good work of the project’s previous owner and working closely with council and the local community to deliver this important piece of community infrastructure.
“Origin will also work with council and other local stakeholders as we develop a separate community investment program which will ensure the benefits flowing from the Yanco Delta project are shared with the broader community.”
The timeline for the project has not been finalised at this stage.
As a state significant development, planning approvals come under the NSW Government’s jurisdiction.
Virya Energy received conditional consent for the wind farm project from the NSW Minister for Planning and Public Places on December 21, 2023.
Environment Protection and Biodiversity Conservation approval was handed down in February this year.
Origin announced in April that it had entered into an agreement to acquire the Yanco Delta project from Virya.
As part of the conditional consent, the project’s owner is required to enter into a Voluntary Planning Agreement with local councils and subsequently make a monetary contribution for a public purpose such as infrastructure.
The Yanco Delta Wind Farm, will be located north-west of Jerilderie.
When complete, it will be one of the largest on-shore wind and energy storage developments in the country.
Connecting to the Dinawan Substation, also near Jerilderie, it is envisaged the project will produce power for around 750,000 households and avoid up to 4.5 million tonnes of carbon dioxide from entering the atmosphere.
The purchase price and development expenditure prior to commencement of construction will be funded from Origin’s corporate debt facilities.
The consideration consists of an upfront payment of $125 million to Virya Energy and an additional variable payment of up to $175 million conditional on the project achieving certain development milestones.
Origin CEO Frank Calabria said the acquisition of Yanco Delta represents a major step forward in the journey to transition Origin’s portfolio to cleaner energy.
“Strategically located in the South West Renewable Energy Zone, Yanco Delta is a quality wind resource that provides benefits of scale,” he said.
“We look forward to working closely with the local community and other stakeholders and bringing Origin’s expertise and track record in developing large scale energy projects to progress this project to construction.”
The VPA between Edward River Council and the developers is open for public comment until June 18.
To view the document and public comment details, go to www.edwardriver.nsw.gov.au/Public-Notices.
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