Referred to NSW Parliament in 2024 and kicking off in 2025, the ‘Impact of Renewable Energy Zones’ inquiry was undertaken by the Portfolio Committee No. 4 – Regional NSW.
It is chaired by Shooters, Fishers and Farmers Party member Mark Banasiak, who highlighted that the rapid rollout of renewable energy infrastructure has often come at the expense of rural and regional communities.
The report examined the impact of developments across the South West which covers our local area, as well as the Central-West Orana, New England, Hunter-Central Coast and Illawarra region.
In the South West REZ, four renewable projects have been granted ‘right of access’ - Bullawah Wind Farm (BayWa R.E.), Dinawan Energy Hub (Spark Renewables), Pottinger Energy Park (Someva and AGL) and Yanco Delta Wind Farm (Origin Energy).
The Transgrid overhead powerlines network (VNI West) will also run across the REZ, from Dinawan to the Victorian border.
While the committee reaffirmed that each REZ is critical to achieving the state’s energy transition and should proceed with urgency, it found major shortcomings in planning, coordination, consultation and accountability.
Central to the committee’s findings was the conclusion that the NSW Government has overseen the expansion of REZs “without a coherent, enforceable whole-of-government planning framework”.
According to the report, it is this lack of strategic coordination that has resulted in “predictable and avoidable harm”, leaving local residents, farmers and councils to manage significant disruption and uncertainty.
The committee also criticised EnergyCo, the state body responsible for planning REZ infrastructure, finding it had failed to effectively perform its role as the central coordinator of the transition.
Community consultation processes, both from EnergyCo and renewable energy developers, were found to be inadequate, often leaving affected communities without meaningful opportunities to influence decisions that will reshape their regions for decades.
Mr Banasiak said the inquiry consistently heard concerns from communities experiencing unprecedented change.
“Rural and regional communities are at the heart of this inquiry,” Mr Banasiak said.
“They are the ones facing significant change to their communities, environment and, for some, their livelihood.”
He noted that committee members travelled extensively across the state, meeting directly with landowners, councils and community groups to witness the impacts firsthand.
“The energy transition should happen with communities and not to them.
“However, the reality has fallen short of this,” he said.
While concerns varied between regions, the inquiry identified several recurring themes.
Stakeholders raised concerns about pressures on housing, roads, local services and workforce availability, while many landholders reported uncertainty around land access and acquisition processes.
The report also found that benefits from renewable energy development are not being shared evenly, creating tensions within some communities and affecting social cohesion.
The inquiry further highlighted deficiencies in dispute resolution mechanisms, emergency planning and social impact assessment processes.
Importantly, it concluded that government responses to issues raised in the committee’s earlier report on the Central-West Orana REZ lacked clear accountability, implementation timelines and meaningful structural reform.
To address these shortcomings, the committee made 16 recommendations aimed at improving governance, transparency and community outcomes.
Key proposals include expanding EnergyCo’s responsibilities and accountability, strengthening coordination between government agencies, providing additional support for local councils, improving consultation and benefit-sharing arrangements, reforming dispute resolution processes and enhancing protections for landholders.
The report also recommends a detailed implementation plan outlining responsibilities, timelines, performance measures and regular public reporting to ensure governments remain accountable throughout the transition.
The final report was tabled in parliament at the end of July. The government has until October to provide a formal response.
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