AgForce is calling on the Queensland Government to legislate a mandatory quality assurance scheme to ensure renewable energy projects are fully decommissioned and agricultural land appropriately rehabilitated at the end of a project’s life.
The peak body said under the current legislation, only the landowner and the wind farm operator are bound by the conditions of approval relating to decommissioning.
AgForce CEO Niki Ford said as renewable energy development continues across regional Queensland, landholders must be sure that the full cost of removing infrastructure and restoring land will never become their responsibility.
“That confidence can only be achieved through a robust financial assurance framework that guarantees decommissioning obligations will be met, regardless of whether a project is sold or the original operator becomes insolvent,” she said.
“Current government guidance acknowledges the importance of decommissioning planning, but there is no mandated statutory requirement for proponents to provide independently secured financial assurance guaranteeing that decommissioning costs will be met.
“In our view, this leaves an unacceptable level of uncertainty for landholders and regional communities” Ms Ford said.
“Performance Outcome 27 (PO27) in State Code 23 deals with financial security for decommissioning but little detail is provided.
“Because it’s so broad, there is a risk that the State Assessment and Referral Agency could approve security arrangements that don’t protect the community if a wind farm operator fails to meet its decommissioning obligation,” she said.
“It does not require security to be provided before construction begins, does not require a bank guarantee and does not provide for regular reviews of security as costs rise.”
AgForce is also concerned that there is no requirement for the security to be unconditional and payable on demand, or structured so that payment can’t be challenged or delayed by the bank or the wind farm operator.
Ms Ford said AgForce had consistently raised the issue with the State Government and its position was clear.
“A decommissioning scheme is more than a regulatory safeguard,” she said.
“It’s fundamental to protecting landholders’ property rights, maintaining community confidence and supporting the long-term social licence of Queensland’s renewable energy industry.
“Landholders should not be expected to host renewable energy developments unless there is a secure, enforceable and independently verified mechanism guaranteeing that decommissioning and rehabilitation will be completed without financial risk to the landholder or the Queensland taxpayer.
“It’s imperative that the Queensland Government introduce legislation establishing a mandatory decommissioning quality assurance scheme for renewable energy projects, providing certainty for landholders, regional communities and the industry alike.”
