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‘It’ll never sell’: Farmers fear property value hits from renewable energy transmission lines

June 12, 2022
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To reach net-zero and bring down power bills, state and federal governments have promised to fast-track the delivery of high voltage transmission lines to incorporate more renewable energy into the grid.

Key points:

  • Thousands of kilometres of transmission lines need to be built across Australia to transition to renewable energy
  • Farmers say they receive little compensation and risk compulsory acquisition from new lines crossing their properties
  • Renewable energy advocates say the infrastructure is critical to bringing down emissions and power bills

But with thousands of kilometres and billions of dollars in investment needed, the farmers in the firing line are calling for a rethink on how the spoils of the transition are spread across the land.

Grazier Christine Hughes already has existing transmission lines running through her property.

“We already have some transmission line here and the new ones will be more than twice as tall,” she said.

Transgrid, the company responsible for the high voltage network in NSW, has now proposed building the 360-kilometre HumeLink line across her property.

The $3.3 billion dollar project is needed to unlock the renewable energy potential of the Snowy 2.0 development and other wind and solar farms for the Sydney energy market.

The plans for HumeLink include a 70-metre easement and towers 75m high every few hundred metres.

“We won’t be able to sell our place if we want to with these lines on it. It’ll never sell … it’s terrible,” Ms Hughes said.

The transmission line is just one of many across the country in various stages of development that needs to be in place before the ageing coal-fired power stations go offline.

The existing transmission network is at full capacity and new high voltage lines are needed.(ABC News: Hugh Hogan)

Compensation lottery

Impacted landholders across the breadth of HumeLink are concerned about visual and environmental impacts, increased bushfire risk and the devaluation of their land from hosting the proposed new line.

But the comparatively lacklustre compensation is also a sticking point.

Farmers who host wind and solar farms on their property are often able to negotiate lucrative yearly payments from the companies for using their land.

But if a company like Transgrid needs to build a high voltage line across a farm, the owner will have to negotiate a one-off settlement.

If the two parties don’t agree, the company has the right to compulsorily acquire the land.

In a statement Transgrid said this would always be a last resort.

“Transgrid’s preference is to achieve a negotiated settlement with landowners and only if this is completely exhausted will a compulsory land acquisition be explored. Any acquisition requires the approval of the Minister,” a spokesperson said.

A map of lines indicating energy lines across the south east of the country.
Transgrid is in charge of building several lines, including Humelink.(Supplied: Transgrid)

But Christine Hughes said the amount she had been offered did not come close to covering the environmental and financial impacts of such large infrastructure across her property.

“The compensation is one tenth of what the wind turbines are getting … it’s absolutely insulting,” she said.

‘They’ll push back’

Renewable energy advocates have called for better compensation for the landowners who have to host transmission lines.

Andrew Bray from the Re-Alliance said the network being planned was beneficial to all energy consumers because it would reduce emissions and bring down power prices.

He would like to see a more “active” payment method to landholders, like a yearly sum to reflect this benefit.

“Where we acknowledge the importance of those landholders giving access to their land and they get to share in some of the value that’s created for electricity consumers,” he said.

He was worried the current compensation system risked causing delays in the transition to renewable energy.

“If it’s done badly, we’ll find that people have gotten offside and they’ll push back, you know, quite reasonably,” he said.

“And that will make the whole transition much more difficult.”

A man standing in front of a transmission line.
Michael Katz has joined with 50 other landholders to get the line built underground.(ABC News: Hugh Hogan)

Underground line?

Michael Katz is another farmer impacted by the proposed Humelink transmission line.

He has teamed up with 50 other impacted farmers, including Ms Hughes, to push for the line to be built underground.

“Rather than destroying and vandalising the beautiful, pristine environment in which we live,” he said.

The HumeLink Alliance said an underground line would have less impact on landholders, have a lower bushfire risk and would have far less environmental and visual impact than the traditional overhead lines.

Transgrid has previously said an underground line would be prohibitively expensive but has commissioned a feasibility study to explore this option.

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Tags: compensationcompulsory acquisitionEnergyfarmershigh-voltagehumelinkinfrastructurePowerRenewable Energytransmission
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