Information for community and stakeholders
Frequently asked questions
How was the decision made to allow renewable energy projects in State forest plantations?
In October 2021, both houses of the Parliament of NSW passed the Energy Legislation Amendment Bill 2021, which amended the Forestry Act 2012 to allow renewable energy projects to be considered within softwood plantations.
This change allowed Forestry Corporation to start investigating how, where and what opportunities exist to manage renewable energy and renewable timber production side-by-side. The amendments made by Parliament during the passage of this bill include specific conditions limiting the location and size of projects and requiring new plantations to be established to offset any impacted land.
The potential to establish renewable energy project in plantations is currently in the early investigation stage and no project proposals have been received.
Why allow renewable energy development on State forest plantations?
Wind farms generate energy from a renewable resource, which supports many government strategies for reducing carbon emissions and the transition towards a supply of renewable energy.
Renewable energy projects are often constructed on farmland or disused public land. Pine plantations may be a suitable option for new renewable energy projects because they have existing infrastructure in place, such as roads and powerlines, and are often some distance from neighbouring houses.
Suitable renewable energy developments that complement ongoing timber production could provide benefits to regional communities and maximise the use of existing land assets.
What type of renewable energy projects might be considered?
The legislation requires that any renewable energy project on State forest plantations must not result in Forestry Corporation failing to meet a wood supply commitment.
In order to be considered, renewable energy technologies must be able to co-exist with plantation trees. Examples could include wind farms or energy storage projects such as pumped hydro (where water is released from a reservoir and channelled through turbines to generate electricity) or large-scale batteries.
Solar farms are not compatible with plantations, as they occupy larger areas of land and use sunlight which is needed to grow trees.
Why put wind farms in plantations?
Wind farms can co-exist with plantation forests without having any long-term impact on tree growth or plantation operations, as the wind turbines are situated well above the top of the trees.
Pine plantations are large areas often in windy locations, with access to powerlines, and a good existing road network.
There are few private houses within the plantations, and energy infrastructure can potentially be placed away from neighbouring houses as well.
There are a number of wind farms operating in forests in Canada, Germany, Sweden, Wales, Scotland and Ireland, and wind farms are being planned for plantations in Tasmania, Victoria, South Australia and Queensland.
What is Forestry Corporation’s process for assessing potential renewable energy projects?
In 2021, the NSW Parliament voted to amend the Forestry Act 2012 to allow for renewable energy projects in softwood plantations. As the land manager for State forest pine plantations, Forestry Corporation has gone to the market to understand where and how renewable energy projects might operate alongside renewable timber production.
In March 2022, Forestry Corporation invited renewable energy providers to indicate whether they were interested in establishing renewable energy projects in State forest pine plantations as well as the most feasible locations and technologies.
A total of 47 renewable energy providers registered their interest in establishing renewable energy projects in State forest pine plantations. Respondents overwhelmingly identified wind power as the most feasible technology, with pumped hydro systems and battery storage opportunities also identified. The pine plantations near Oberon, Sunny Corner, Bondo, Orange and Laurel Hill were identified as the most feasible locations for initial investigations.
Based on this information, in July 2022, Forestry Corporation invited expressions of interest from renewable energy providers who might genuinely consider developing projects in these five locations. A total of 94 submissions were received and following review of these submissions, the most feasible locations were refined to Oberon, Sunny Corner, Bondo and Orange.
In early 2023, Forestry Corporation asked for formal proposals from renewable energy companies who had submitted the most suitable proposals in the expressions of interest phase. Companies will submit where, what and how they might establish new renewable energy projects in softwood plantations. These proposals are expected in mid-2023.
Once proposals are received, Forestry Corporation will consider a range of factors including but not limited to:
- how the proposal can be managed alongside Forestry Corporation’s obligations to produce renewable timber, provide industry and community access to plantations, manage fire and maintain sustainable forest management.
- the project’s renewable energy potential.
- the proponent’s commitment to community consultation and delivering community benefits.
If a project can be managed alongside forestry operations and meet merit selection criteria, Forestry Corporation may issue a permit in each of the four locations being considered.
A permit is not consent to proceed with a project, but it will allow the provider to start the more detailed studies to see if a project is viable.
This involves the various site investigations, wind studies, planning and consultation processes that are required before a project development application is submitted. The assessment and approval process is the same as any other proposal on private property and Forestry Corporation has no role in assessing or approving renewable energy projects for construction.
A permit from Forestry Corporation is not a guarantee that any development would go ahead. See the NSW Government’s renewable energy website for more information about the planning and approval process for potential projects.
What planning processes are there for approval to build a renewable energy facility in plantations?
To develop renewable energy projects on any land in NSW, proponents must satisfy the requirements under the existing planning legislation and approvals processes. There are no exemptions for development on State Forests. Forestry Corporation has no special powers to act as the consent authority to approve renewable energy developments.
Viable projects are expected to be State Significant Developments. Federal and State planning requirements will apply, including on the energy generation facility, on transmission and network security as well as localised considerations for each renewable energy project.
At a project site, a developer must consider environmental impact, noise, landscape and visual impacts, traffic and transport issues, hazard and risks, heritage, water and soil impacts, waste management and undertake community consultation, before a development application is submitted for approval.
See the NSW Government’s renewable energy website for more information about the planning and approval process for potential projects.
What is the timeline to develop a renewable energy project?
Successful proponent(s) would be granted a forest permit to undertake feasibility studies on the project, and potentially go on to construct and operate a renewable energy facility.
Issuing a permit is not a guarantee that any development would go ahead. The project would be subject to the existing NSW planning approval processes. It is very early in the process and no construction would be anticipated in any location for several years.
Forestry Corporation expects to issue permits at the end of 2023 that would enable renewable energy providers to start detailed investigation and, if viable, the development proposal process.
The development proposal process is expected to take 4-6 years, including:
- environmental studies
- collection of wind and technical data
- project design
- stakeholder engagement
- negotiation of grid connection
- NSW Government planning application and approvals.
Construction would only commence once development approval is granted. See the NSW Government’s renewable energy website for more information about the planning and approval process for potential projects.
Where could renewable energy projects be built?
At this stage, all that is taking place is investigation of potential opportunities. The Forestry Act allows a permit to be issued on any of the State forest softwood plantation areas in NSW, with no more than 0.7 per cent of Forestry Corporation's total softwood plantation areas to be used for renewable energy developments.
Forestry Corporation is currently investigating areas that have the greatest potential generation capacity within the smallest footprint. These are within pine plantations near:
- Oberon
- Sunny Corner
- Orange
- Bondo
Forestry Corporation is considering issuing permits to a small number of renewable energy providers that would allow them to start the process of investigating and applying for approval to build new renewable energy projects within plantations in these locations. Before we issue a permit, we have invited shortlisted providers to submit more detailed proposals for each of these locations so that we can assess whether the projects can be managed alongside ongoing timber production.
No projects are currently being considered for construction and Forestry Corporation has no role in assessing or approving renewable energy projects. All new renewable energy projects must undergo the normal application and approval process. See the NSW Government’s renewable energy website for more information about the planning and approval process for potential projects.
How have these locations been selected?
These locations have been identified by renewable energy suppliers as having the greatest potential for renewable energy projects for a range of reasons, including their proximity to existing infrastructure such as roads and transmission lines, distance from communities, and windy locations.
If Forestry Corporation issues a permit for any of these locations, it would allow the renewable energy provider to start detailed investigations in that location, which would include technical wind studies, environmental assessments, consideration of infrastructure requirements and community consultation.
No projects are currently being considered for construction and Forestry Corporation has no role in assessing or approving renewable energy projects. All new renewable energy projects must undergo the normal application and approval process. See the NSW Government’s renewable energy website for more information about the planning and approval process for potential projects.
What input can local communities have in the process?
Once proposals have been assessed and permits issued, details about proposed locations will be shared by project developers and consultation about the specific projects can commence.
Project proponents will engage with communities and must provide opportunities for community input in design, construction and longer-term partnerships that deliver community benefits. Project planning will include assessment of a wide range of topics, which include placement of infrastructure and roads to be used through to local job opportunities and regional development.
Community members will also be encouraged to consider what investments they would like to see from project developers in the community for the long term.
If viable, any project must be approved through the normal development application, assessment and approval process. See the NSW Government’s renewable energy website for more information about the planning and approval process for potential projects.
Why has Forestry Corporation carried out its request for proposals process before engaging with local communities?
Forestry Corporation manages approximately 225,000 hectares of softwood timber plantations throughout NSW, spread between the Queensland and Victorian borders. The amendments to the Forestry Act that were passed by the NSW Parliament in 2021 allow for renewable energy projects to be established in up to 0.7 per cent of this area.
Forestry Corporation is not a renewable energy supplier, so has needed to work with renewable energy providers to understand what opportunities for renewable energy production might be possible across the State. The market process carried out over the past 12 months has identified the four locations out of the 225,000 hectare pine plantation estate that have the most potential.
In the second half of this year, Forestry Corporation will consider the proposals received to consider which of these projects could successfully be managed side-by-side with ongoing renewable timber production.
The request for proposals process is part of the initial investigation phase and is not a project assessment.
Forestry Corporation recognises that engaging with communities is essential and once potential projects are identified and permits issued, detailed community consultation will commence as part of the normal project planning process.
What consultation has taken place with First Nations communities?
Once a permit is issued to allow for a project to be investigated further, renewable energy providers would be expected to engage with local Aboriginal communities.
How will the potential impacts of renewable energy projects on rural landholders be considered?
Once a permit is issued to allow for a project to be investigated further, renewable energy providers would be expected to carry out detailed planning and consultation with local communities.
State planning requirements will apply, and a developer must consider environmental impact, noise, landscape and visual impacts, traffic and transport issues, hazard and risks, heritage, water and soil impacts, waste management and undertake community consultation, before a development application is approved.
See the NSW Government’s renewable energy website for more information about the planning and approval process for potential projects.
Will there be buffer zones established adjoining private properties?
Forestry Corporation has not received any project proposals at this stage, but once a permit is issued to allow for a project to be developed, renewable energy providers would be expected to carry out detailed planning and consultation with local communities. Details such as buffers will be considered during the planning process, and must meet the requirements of the NSW Department of Planning.
How will the potential impacts of new renewable energy infrastructure on tourism be considered?
Once a permit is issued to allow for a project to be investigated further, renewable energy providers would be expected to carry out detailed planning that considers a range of factors, including tourism.
How will the potential impacts on flora and fauna be assessed?
Once a permit is issued to allow for a project to be investigated further, renewable energy providers would be expected to carry out detailed flora and fauna assessments.
Environmental impacts are specifically assessed and considered during the development approval process.
See the NSW Government’s wind energy website for more information about the planning and approval process for potential projects.
How will bushfire risk and firefighting access be considered?
Forestry Corporation is a firefighting authority and closely assesses and manages the potential bushfire risk related to any permit on State forest.
Under normal operating circumstances, it’s extremely unlikely that a wind farm can cause or adversely affect a bush fire and they don’t impede firefighting operations from the ground or air.
Road access will be enhanced, and asset protection zones put in place around energy infrastructure. Wind turbines can be stopped, enabling aircraft to access any fire close to a wind turbine.
Under the NSW planning rules, wind farm projects are required to conduct a fire risk assessment and develop asset protection and bushfire response procedures. The NSW Rural Fire Service makes comment to the NSW Department of Planning on State Significant Development proposals on whether the fire risk assessment and fire mitigation measures are adequate.
See the NSW Government’s wind energy website for more information about the planning and approval process for potential projects.
How will potential noise impacts be assessed?
Once a permit is issued to allow for a project to be investigated further, renewable energy providers would be expected to carry out detailed assessments, including consideration of noise. There are requirements of the development agreement related to minimising the impact of potential noise on nearby residences.
See the NSW Government’s wind energy website for more information about the planning and approval process for potential projects.
How will the impacts on local roads be assessed?
Project planning will include assessment of existing, upgraded and new infrastructure. Development consent and consultation is required for major new infrastructure.
See the NSW Government’s wind energy website for more information about the planning and approval process for potential projects.
What new transmission infrastructure will be required?
Once a permit is issued to allow for a project to be investigated further, renewable energy providers would be expected to carry out detailed assessment and planning, including consideration of transmission infrastructure. Development consent and consultation is required for major new infrastructure.
One of the positive elements of using State forest plantations for renewable energy developments is that there are often existing transmission lines that pass through or are located adjacent to the plantations.
What measures will be in place to decommission and remove the wind farms at the end of their lifespan?
Once a permit is issued to allow for a project to be investigated further, renewable energy providers would be expected to carry out detailed planning and assessment.
Timely decommissioning of turbines that are no longer in use is a standard condition of consent for NSW wind farms.
See the NSW Government’s wind energy website for more information about the planning and approval process for potential projects.
Will agricultural land be purchased to offset the land on which renewable energy projects are developed?
The NSW Parliament’s amendments to the Forestry Act specifically introduced requirements that any plantation removed for a renewable energy project to be replaced at a rate of two for one.
Under these requirements, the replacement land must be similar distance from local timber producers and has the same or greater productive capacity and rainfall as the land for which it is substituted. The renewable energy provider would be required to identify and purchase the replacement land to add to the plantation estate.
What commercial relationships does Forestry Corporation have with renewable energy providers?
Forestry Corporation has not entered into any commercial relationships with renewable energy providers seeking to establish renewable energy projects in pine plantations.
Once Forestry Corporation has assessed the proposed projects and determined to issue one or more permits to allow for investigation, Forestry Corporation would enter into a commercial agreement with the permit holder.
Forestry Corporation has commercial relationships with a wide range of businesses currently operating in State forests under permit arrangements, from communications tower owners to tourism providers.
Will the renewable energy be supplied to local regional communities?
Once a permit is issued to allow for a project to be investigated further, renewable energy providers would be expected to carry out detailed planning, which would include assessment of energy generation and supply.
See the NSW Government’s wind energy website for more information about the planning and approval process for potential projects.
Will renewable energy be considered in native forests?
No. Only land used by Forestry Corporation to grow softwood plantations can be used for renewable energy.
Will renewable energy projects be expanded to other areas of softwood plantation?
The Forestry Act 2012 has clear parameters for renewable energy projects in softwood plantations, allowing no more than 0.7 per cent of Forestry Corporation’s softwood plantation estate to be used for renewable energy developments.
Why are these projects outside the NSW Government’s Renewable Energy Zones?
Renewable Energy Zones (REZs) are areas the NSW Government has identified for new renewable energy generation. Other renewable energy projects can be proposed outside REZs.
All new renewable energy projects must undergo the normal application and approval process. See the NSW Government’s wind energy website for more information about the planning and approval process for potential projects.
How will renewable energy projects such as wind farms impact the area used for plantations?
Renewable energy projects would coexist with the range of other uses already taking place side by side in State forests, including tourism, apiary, grazing, timber production and access for recreation.
The land area required for a wind farm is relatively small because the wind turbines would operate above the forest canopy. A wind farm with a generation capacity of one gigawatt might require an aggregated 600 hectares of land.
The legislation allows no more than 0.7 per cent of Forest Corporation's softwood plantation to be used for renewable energy developments, which is about 1600 hectares out of the total 225,000 hectares of State forest softwood plantations. It also requires that developers replace the area of plantation land they use for renewable energy infrastructure with an area at least twice the size, to be used to establish plantations - increasing the area of timber plantation overall.
How will Forestry Corporation maintain wood supply to customers?
Long-term wood volumes to Forestry Corporation customers must be maintained.
The legislation requires that the plantation land used for the construction and operation of renewable energy projects is replaced by an area of land at least twice as large. Proponents would have to offset land at their expense by providing twice as much land of an equivalent productivity in the same general locality, or by providing the funds for Forestry Corporation to buy the offset land.
Forestry Corporation uses detailed modelling and harvest scheduling to manage the volume of timber supplied to customers in line with its long-term timber supply agreements.
Will Forestry Corporation pay council rates on the land where renewable energy projects are developed?
State forests are Crown lands and are not subject to council rates. However, areas of State forests that are leased by private lessees or occupied under permit for commercial purposes such as tourism, grazing or agistment are subject to council rates and Forestry Corporation also pays rates on any land it holds as freehold.
Council rates would be payable on any area where a renewable energy project is developed.
There is no proposal for Forestry Corporation to pay council rates on all Crown lands it has been appointed to manage. As the appointed land manager of State forests Forestry Corporation delivers a range of benefits to the local community such as free access for tourism and recreation, conservation, fire management and provision of 60,000 hectares of free forest roads. These services are provided in addition to the renewable timber products that are produced to meet the community’s ongoing demand for timber and building products and underpin timber harvest, haulage and processing industries that are major local employers in regional NSW.
What forums are there for the community to come to and ask questions?
Forestry Corporation understands that the community has questions about potential renewable energy projects in pine plantations and welcomes these.
Forestry Corporation recently accepted an invitation from Oberon Council to attend its open council meeting and will engage with other local councils and communities to provide information and opportunities for people to ask questions.
Once a permit is issued to allow for a project to be investigated further, renewable energy providers would be expected to commence detailed community engagement around their proposed projects.
Where can I find out more?
This website will be updated throughout the investigation and you can sign up to our mailing list to receive updates.
If you have any further questions, you are welcome to contact us.
See links below to previous media releases and community information sessions: