Ratepayers set to benefit from impost on renewable energy projects

Money collected from the levy would flow into a futures fund, helping to pay for green projects in the future, Mayor Sam Coupland said.

Tamworth Regional Council also recently voted to standardise its approach to entering Voluntary Planning Agreements (VPAs) with renewable energy developers, requiring a contribution of 1.5 per cent of the value of all the project's assets to be paid to the council.

Oxley Solar Farm has just agreed to pay Council $5.6 million, after striking a 1.6 levy on its planned 1048 hectare solar farm, 14 kilometres south east of Armidale.

Under the deal the company will pay half the levy upfront and the balance over a 20-year period.

"Part of the deal means the company will also build electric vehicle charging stations, as well as pay an annual payment to Council for its Zero 30 project [which aims to reduce the overall carbon footprint of the region]," Mayor Coupland said.

"The creation of the renewable energy zone, where Armidale is the epicentre, is our one-off mining boom.

"We need to ensure any benefits that can be derived from the creation of the REZ are not only shared throughout the community ... but provide intergenerational benefit."

The levy was adopted by Armidale Regional councillors at Council's October meeting on Wednesday, October 25.

A board of guardians and community members would manage, invest and distribute contributions from the future fund.

The board would consist of community representatives, a councillor and a council staff delegate.

Earlier this year, Council sought ideas from the community as to how best to reap the benefits from the region being the largest renewable energy zone in NSW.

Submissions included those from Sustainable Living Armidale, New England Visions 2030 Institute, the Community Power Agency and New England Greens.

Ideas about how to use monies from the future fund included $2000 subsidies for household water tanks and rooftop solar panels, as well as building a short-term stay village for tradies working on renewable energy projects.

Mayor Coupland said the impost on wind farms would reap much greater financial reward, since they were more expensive to build.

The renewable energy zone in New England is tipped to generate $10 billion in private investment, 830 operational jobs, as well as 1250 construction jobs each year.

So far, deals have been struck with Oxley Solar Farm and Tilbuster Solar Farm.

Earlier this year, Origin Energy bought Warrane, a sheep and cattle farm on the outskirts of Armidale, for more than $31 million.

The 7690-hectare property is tipped to become a wind farm, near Squadron Energy's Boorolong wind farm.

READ ALSO:

Our journalists work hard to provide local, up-to-date news to the community. This is how you can continue to access our trusted content: