Narrabri Shire Council rejects solar farm planning agreement offer

Narrabri Shire Council has agreed to reject a voluntary planning agreement offer for the development of a solar farm 25-kilometres from Narrabri.

The proponent, Whitehaven Coal, offered a one-off payment of $50,000 as part of its plan to develop a solar facility adjacent to its Narrabri underground mine.

In its business paper, council states the scoping report submitted as part of the supporting documentation for the Secretary’s Environmental Assessment Requirements (SEARs) indicates that the project would include approximately 26 megawatts (MW) direct current (DC) or 20 MW alternating current (AC) of solar electricity generation.

“The project will provide behind-the-meter electricity supply to the Narrabri mine via the existing 66 kilovolt (kV) electricity transmission line (ETL) and has an estimated development cost of $56.6 million dollars,” the business paper states.

“The Narrabri Underground Mine is currently permitted to operate until 2044 meaning it is expected to close prior to the expiration of the design life of the solar farm. It is Whitehaven’s intention to the look at opportunities to divest the solar farm to third parties or decommission the project at that earlier stage.

“Whilst council both recognise and appreciate the current funding opportunities offered by Whitehaven to the community, it can be considered that this is available as a result of Whitehaven’s existing mining operations within the shire and this project should be considered separately and in addition to what is already on offer.”

In its correspondence to council, Whitehaven Coal outlined its recent support for community causes and projects.

“Whitehaven has a strong record of providing community benefits in the Narrabri LGA. Recent highlights include $370,000 to community causes and projects in the 2023 financial year, and $327,000 in the 2024 financial year,” Whitehaven said in its letter to council.

“In the financial year to date, Whitehaven provided over $180,000 to organisations in the Narrabri region, including $60,000 in support of the Narrabri water tower mural and the Narrabri Create Festival.”

In its meeting documents, council states the benefit sharing rate set out in the DPHI Benefits Sharing Guideline is $850 per megawatt per annum for solar energy development (based on installed capacity and paid over the life of the development and indexed to the Consumer Price Index).

Councillor Jocellin Jansson moved that council reject the offer and continue to engage in negotiations with Whitehaven to obtain a more positive outcome for the community. The motion was seconded by Cr Brett Nolan.

“The proposal from Whitehaven is manifestly insignificant as compared to the guidelines, and as compared to what other communities have been able to derive via VPAs,” Cr Jansson said.

“I commend council staff in pursuing an improved offering.”