The Inquiry into the Approvals Process for Renewable Energy Projects in Victoria, conducted by the Victorian Environment and Natural Resources Committee in late February 2010, found the approvals process to be outdated and overly complex.
Victorian wind projects account for almost 40 per cent of the state’s renewable resources.
Renewable energy companies can expect to wait between 8 months and 4.5 years for project approval, with an average waiting time of almost 1.5 years for wind farms. This is in contrast to other windy states such as New South Wales and South Australia, where average approval periods for wind farms are 7 months and 5.5 months respectively.
Renewable projects in all states must go through a number of approval stages across numerous government departments and agencies before getting the green light. However, unlike other renewable projects, or renewable projects in other states, approval for Victorian wind farms must be sought through one of two channels, depending on the size of the project.
Projects with a capacity of less than 30 MW gain approval through local council, and projects over 30 MW currently seek approval from the Victorian Minister for Planning. While the average wind farm approval waiting period with local council is just over 1 year and 1 month, the wait is an average 1 year and 8 months when it lies with the Minister for Planning.
Furthermore, the local council regulations stipulate that if a decision has not been made within 60 days, developers can appeal to the Victorian Civil and Administrative Tribunal (VCAT). This has led to wind farm developers submitting applications for wind farms of 29.9 MW capacity in order to reserve the possibility of speeding up the process by appealing to VCAT.
“The 60 day limit for permits subject to appeal to VCAT is also seen by proponents [as a way] to shorten the approval timeframes,” reads a combined submission to the inquiry from the Shires of Moyne, Southern Grampians, Glenelg, Corangamite and the City of Warrnambool.
Approval from the Minister for Planning can take up to 2 years and 7 months, which has led to some wind farm developers, such as Pacific Hydro, to suggest that statutory time constraints be imposed upon the Minister to reduce the delay for granting of the initial permit, and make the process less cumbersome.
Some local councils, such as the City of Greater Bendigo and the City of Ballarat, have also voiced concerns that they lack the expertise and resources to continue acting as the responsible authority on smaller wind farms, calling for the Minister for Planning to take over the program entirely.
The Victorian Legislative Assembly has until 25 August 2010 to respond to the inquiry report.
A copy of the report is available at www.parliament.vic.gov.au/enrc
