The Mid-Western Regional Council in New South Wales (NSW) has voted unanimously in favour of accepting a voluntary planning agreement (VPA) proposed by developer Potentia Energy that is set to deliver annual contributions of $425,000 (USD 276,675) for at least the first 35 years of the project’s operational life.
Potentia, a joint venture between Italian company Enel Green Power and Japanese oil and gas giant Inpex, is developing the Tallawang solar and battery energy storage project on a 1,300-hectare site about 8 kilometres northwest of Gulgong in the Mid-West Regional Council area.
The estimated $743 million project proposes to combine 500 MW of solar with a 500 MW / 1,000 MWh battery energy storage system. The project has obtained development consent from NSW Department of Planning, Housing and Infrastructure and has secured access rights in the NSW government-designated Central-West Orana Renewable Energy Zone (REZ).
As part of its commitment to the community, Potentia had proposed a VPA with the local council that would deliver annual payments of $850 per MW of the project’s solar energy capacity, for up to and including the first 35 years of the project’s operational life. That equates to $425,000 per annum, or $14.875 million over the 35-year period.
The council’s economic development coordinator had recommended councillors accept the VPA offer, noting that if they didn’t there was a risk council would not receive appropriate funding for the impact of the project.
Council has now voted unanimously in favour of adopting the VPA with the contributions to be applied towards projects identified as part of its community plan and delivery program.
Potentia Chief Executive Officer Werther Esposito earlier this year said a key focus throughout the project’s development phase has been a proactive and comprehensive approach to community engagement and benefit sharing for the local community and broader regional community within the Central-West Orana REZ.
“We look forward to continuing to work closely with the local community, our host landowners and project partners to deliver Tallawang in a way that genuinely maximises long-term benefits for the region – through jobs, local investment, and shared opportunities,” he said.
“Our goal is to thoughtfully minimise potential impacts on the environment and surrounding communities wherever possible.”
Potentia said it will continue to progress a range of development activities for the Tallawang project including further project design work, grid assessments and procurement activities. According to the company, construction will take three years and generate economic activity through job creation and local investment.
Previously known as Enel Green Power Australia, Potentia operates more than 800 MW of renewable energy assets across Australia, with another 200 MW of capacity under construction and rights secured for a development pipeline of more than 8 GW across the country.
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