GLOUCESTER region residents are questioning whether the money raised through the development of the Stratford Pumped Hydro and Solar Project will go to the community, or to MidCoast Council.
Yancoal’s delayed response to community and agency submissions regarding the project can now be viewed on the NSW Planning Department’s portal, under the major projects section.
Of particular interest is Yancoal’s response to Council’s submission.
In a letter dated 29 October 2024, Council said Yancoal should make a one-off payment of $10 million and another payment of one percent of the estimated development cost (EDC) of the project.
The payments would be part of a Voluntary Planning Agreement (VPA) and be spread over 80 years – the likely life of the project.
Yancoal rejected making the one-off payment but agreed to the annual amount.
It estimates that one percent of the EDC is $18,188,547.35, meaning that annual payments to the Council would be $227,356.85 – adjusted for inflation.
Council has not specified how the money will be spent, and in what way the payments will benefit the Gloucester area.
This is despite the NSW Government recently publishing a “Benefit Sharing Guideline”, which provides advice on how community benefit sharing can be incorporated into the delivery of large-scale renewable energy developments.
“Communities, which bear the brunt of the changes, may not necessarily experience a proportionate level of benefits from the uptake of renewable energy,” the advisory explains.
“We need to make specific efforts to fairly share the proceeds from the transition within the areas in which it is focused.”
Gloucester local Tibor Kovats, who is a town planner with experience in Hunter Valley coal mining approvals, approached the Department to see how this applied to the Stratford project.
“I was advised that [the] guideline does not prescribe benefit-sharing rates for pumped hydro projects, however I was also told that benefit-sharing is strongly encouraged and should be evaluated on a project-by-project basis,” he said.
“This project includes a major solar farm so in my opinion the Benefit Sharing Guideline should be applied.
“I hope that the Council will engage with the Gloucester community to ensure that, should the project go ahead, it is the Gloucester community that benefits from any annual contribution and that the money is not lost to general Council finances and expenditure.”
News Of The Area sought comment from MidCoast Council about what plans it had to ensure that the benefits of the Yancoal payments were applied to the Gloucester area.
“MidCoast Council will provide comment when the opportunity allows,” a spokesperson said.
By John WATTS
