Securing approvals for renewable energy facilities in Victoria

In brief

Prior to its re-election, the Victorian Labor government announced a commitment to introduce updated renewable energy targets of 65% by 2030 and 95% by 2035. 

There is already strong policy support for the development of new onshore renewable energy facilities in Victoria, but obtaining planning and environmental approvals can be complex. 

In this article we explore some of the key issues that are likely to arise during the approvals process for new onshore renewable energy facilities in Victoria. 

This article forms part of our series on planning and environmental approvals for renewable energy facilities. 

See our previous update on offshore wind here.

What approvals are required to establish a new facility? 

A planning permit issued under the Planning and Environment Act 1987 (PE Act) is generally required to establish or expand a renewable energy facility. 

While planning permit applications for most types of developments are determined by local Councils, applications for renewable energy facilities with an installed capacity of 1 megawatt or greater are determined by the Minister for Planning (Minister) (who is assisted by the Department of Environment, Land, Water and Planning (Department)). We recommend allowing at least 6-9 months from the date of lodgement for a planning permit application to be publicly advertised and assessed by the Minister. 

The Department has released guidelines to assist proponents in understanding the policy, legislative and statutory planning arrangements for some categories of renewable energy facilities, including:

• the Solar Energy Facilities Design and Development Guideline; and
• the Policy and Planning Guidelines for Wind Energy Facilities in Victoria. 

Proponents may also need to prepare an environment effects statement (EES) under the Environment Effects Act 1978 (Vic). The first step in this process is ‘referring’ a project to the Minister for an assessment of whether an EES is required. 

As set out in the relevant guidelines, an EES might be required when:

• there is a likelihood of regionally or State significant adverse effects on the environment;  
• there is a need for integrated assessment of potential environmental effects (including economic and social effects) of a project and relevant alternatives; or 
• normal statutory processes would not provide a sufficiently comprehensive, integrated and transparent assessment. 

Generally, obtaining planning approvals will take longer for projects that require an EES. We recommend allowing at least 2-3 years from the referral date for an EES to be prepared, publicly advertised and assessed, and for a decision to be made on a planning permit application. 

The need for other approvals varies from project to project and often relies on the results of site-specific assessments. We recommend seeking advice early, as site selection is critical to a project’s success.

Key considerations for decision makers 

While there is strong policy support for renewable energy facilities, proponents must demonstrate that the impact of their project is acceptable – they will not be approved at all costs. Under the PE Act, decision makers are required to balance conflicting objectives in favour of net community benefit and sustainable development for the benefit of present and future generations. 

Each project is unique, and proponents will face different challenges – it is theoretically possible to obtain planning permission for a renewable energy facility in a range of land use zones, including the Farming Zone and Green Wedge Zone. However, recent approval processes have made it clear that the following issues are likely to be front of mind for decision makers:

• impact of the facility on agricultural production and land supply – while many existing renewable energy facilities are in the Farming Zone, some areas of agricultural land are more valuable than others (for example, due to fragmentation, soil quality or government investment in the area). Recent policy amendments have made it clear that non-agricultural uses are not supported on agricultural land in declared irrigation districts; 
• landscape and visual impact – planning policy recognises that some views and landscapes are highly valuable and should be protected. A project’s design response can assist in mitigating its visual impact, but most renewable energy facilities will be visible from the public realm and surrounding properties. Some sites will be more amenable to change than others;
  
• ecological impact – development of renewable energy facilities often necessitates the removal of native vegetation which may have ecological significance. Ecological surveys should be conducted early in the process as they may need to be conducted at a particular time of year and their results can have a material impact on site selection and design response; 
• aviation safety – both wind turbines and solar energy facilities have the potential to impact the operation of airports and airfields. Decision makers have confirmed that this is a matter that can go to the heart of the acceptability of a proposal and in at least one instance led to the refusal of a planning permit application for a wind energy facility; 
  
• bushfire planning – the Victorian Planning Provisions impose a requirement on decision makers to prioritise the protection of human life over all other policy considerations. Proponents should consider bushfire risk from the outset (including by reference to the Design Guidelines and Model Requirements for Renewable Energy Facilities, which were revised earlier this year);
  
• acoustic impact – key amendments to the Environment Protection Act 2017 commenced in July 2021 which introduced new restrictions on noise emissions. While these changes are relevant for all projects, proponents should note that wind turbine noise is now subject to specific regulations; and
  
• social impact – the planning permit application and EES processes provide for public notice and participation, but it is best practice to undertake community consultation well before lodging a planning permit application. Decision makers must take into account any significant social and economic impacts of the project when assessing planning permit applications and must (where appropriate) have regard to the number of objectors in considering whether a project may have a significant social effect. Establishing and maintaining a ‘social licence to operate’ is critical, not only during the approvals process, but also during the construction and operation of a project. Proponents that fail to invest in building a trusted relationship with the community put themselves, and the renewable energy industry more broadly, at risk. 

How we can help

We are dedicated to finding innovative and strategic solutions to support clients in the efficient planning and delivery of their projects, in an environmentally and community conscious manner. We would be delighted to discuss your project with you and assist you on your journey to obtain the necessary approvals.