Landowners in Queensland are set to receive the most generous payments for hosting transmission line under a new framework unveiled to accelerate the state’s green energy transition that could deliver up to $450 million into landowner hands.
The so-called SuperGrid Landholder Payment Framework – unveiled by state-owned transmission company Powerlink on Thursday – will offer payments of around $300,000 a kilometre to landowners that host new transmission infrastructure.
That amount – although they will vary according to land value – is about 50 per cent more than the sums offered to landowners in NSW and Victoria, even after payments in those states were effectively doubled to new levels of around $200,000 a kilometre.
Powerlink will also become the first transmission company in Australia to offer payments to landholders with properties adjacent to new transmission infrastructure.
Powerlink itself plans around 1,500 of new transmission links – which translates to landowner payments of around $450 million – but that doesn’t include the infrastructure needed for renewable energy zones and the proposed Copperstring project linking Mt Isa and Townsville.
The new payment system comes as Australia faces a shortage of hosting capacity just as it seeks to ramp up the amount of wind and solar on the grid, first to reach the federal government’s 82 per cent renewables target by 2030, but also to reach ambitious state targets and massive green hydrogen projects.
The Australian Energy Market Operator says the network is effectively at gridlock, but new transmission projects have been held up, partly by the regulatory process and partly by emerging issues of social licence that have hampered the wind industry before it.
“We’re building the Queensland SuperGrid, the nation’s largest, to transport cheap, clean, and secure renewable energy from across the state, to power more homes and support new industries and job opportunities,” Queensland energy minister Mick de Brenni said in a statement.
“Powerlink is now in a position to offer higher payments for the majority of Queensland landholders hosting transmission infrastructure compared to arrangements in place prior to the Queensland Energy and Jobs Plan.”
Powerlink CEO Paul Simshauser says the new payments follow more than six months of consultations with councils, agricultural groups, landowners, consumer organisations and big energy users.
“Providing landholders with greater flexibility around the timing of payments, with both up front and annual payment options now available, was important – along with ensuring the new framework considered the variance in property values across different regions, rather than applying a blanket approach,” he said.
Attributable to Jo Sheppard, CEO, Queensland Farmers’ Federation:
“QFF has been pleased to be able to contribute to ongoing detailed discussions through the Powerlink reference group in relation to the proposed new payment framework that will now see landholders receive payments that are more reflective of the use of their land.
“It is important that a process is in place to represent the interests of those who will be directly impacted by transmission lines and that the needs of landholders and the broader agriculture sector are considered as the complexities of integrating grid infrastructure are navigated.
“QFF will continue to work with Powerlink to support landholders to ensure the interests of farmers are represented and minimal impacts to agricultural land occur during the renewable energy rollout to protect the future viability of our valuable food, fibre and foliage production systems.”
The new payment framework will apply to all current and future transmission connection greenfield projects where landholder payment negotiations have not commenced.
It will also see an increase in flexibility around the timing of payments, offering an annual payment option, and giving payment estimates to landholders much earlier in the process.
New payment option for landholders within, or partially within, a 1km radius of a final transmission easement. This will be decided on the value of the property, and the impact of the transmission infrastructure on the use of the property, including on farming practices and other business operations.
Hosting landholders will also receive an incentive payment plus an allowance for professional advice and services.
Neighbouring properties within the 1km radius of transmission infrastructure will get a proportional payment which is calculated on the amount of land located within this 1km zone. “We are the first transmission entity in Australia to offer a payment of this type,” Powerlink says.
The Queensland SuperGrid is the government description of poles, wires, solar, wind and storage that will help make up its target of 80 per cent renewables by 2035. Queensland is currently the state most dependent on coal and renewables have only a 22 per cent share of generation in the past year.
The new renewables and storage assets will include large pumped hydro assets, new backbone transmission lines, more renewables in renewable energy zones, more batteries and “low to zero emission” gas.
Jo Shepperd, the head of the Queensland Farmers Federation, said the new payments are more reflective of the use of land.
“It is important that a process is in place to represent the interests of those who will be directly impacted by transmission lines and that the needs of landholders and the broader agriculture sector are considered as the complexities of integrating grid infrastructure are navigated,” Shepperd said.
