New England REZ
New England REZ Overview
The New England Renewable Energy Zone (REZ) is a major NSW Government energy infrastructure project planned for the New England region, centred around Armidale. The project is intended to support new renewable energy generation and storage by delivering new transmission infrastructure, including transmission lines, energy hubs and related enabling infrastructure, to transfer power generated by solar and wind farms to electricity consumers.
The New England REZ is expected to attract up to $24 billion in private investment and has an intended network capacity of 8 gigawatts. The REZ was formally declared in December 2021, with EnergyCo appointed as the Infrastructure Planner responsible for coordinating the development of the REZ.
As part of the network infrastructure project, EnergyCo has confirmed a refined 1km-wide transmission corridor extending for approximately 300km across the New England and Upper Hunter regions. The corridor will connect the New England REZ to the existing electricity grid, including at Bayswater Power Station near Muswellbrook.
Compensation
The delivery of major transmission infrastructure may require the acquisition of interests in land, including easements for transmission lines, access arrangements, substations, energy hubs and associated infrastructure.
Where land is acquired in New South Wales, compensation is generally assessed having regard to the Land Acquisition (Just Terms Compensation) Act 1991 (NSW). Compensation assessments are a specialised field of valuation, requiring careful consideration of the relevant statutory heads of compensation, the property’s highest and best use, the specific impact of the acquisition, and any diminution in value to the balance of the land.
Under the Just Terms framework, relevant matters may include market value, special value, severance, disturbance, disadvantage resulting from relocation, and any increase or decrease in the value of other land held by the claimant arising from the public purpose.
For transmission line and energy infrastructure matters, valuation issues can be complex. Impacts may include the land occupied by an easement, restrictions on future use, impacts on agricultural operations, visual impacts, access impacts, biosecurity considerations, effects on dwellings or improvements, and broader injurious affection to the remaining land.
Transmission Line Easements
High voltage transmission line easements often require a valuation approach that considers each component of impact separately. Depending on the circumstances, this may include the value of the land within the easement, impacts arising from towers or other physical infrastructure, impacts on nearby improvements, and any residual impact to the remainder of the property.
Sovereign Valuations is experienced in compulsory acquisition and transmission infrastructure matters, including renewable energy zone projects and other major infrastructure projects throughout NSW and Victoria. Our role is to ensure that each relevant head of compensation is properly considered, supported by market evidence and clearly articulated throughout the negotiation, conference or court process.
Engaging a Valuation Firm for Your New England REZ Matter
Engaging a property valuation firm experienced in compulsory acquisition matters is a critical step to ensuring that an adequate sum of compensation is achieved.
Landholders affected by the New England REZ may be approached in relation to access, investigations, easement acquisition or broader land acquisition matters. It is important that affected parties obtain independent valuation and legal advice before agreeing to any compensation amount or signing binding documentation.
Sovereign Valuations has completed acquisition and compensation assessments for properties ranging from rural holdings through to major commercial, industrial and development assets. Our team has been involved in large-scale infrastructure and renewable energy matters, including compensation assessments in excess of $100 million.
Contact Us
To discuss your New England REZ matter, contact us on 1300 710 000 for an obligation-free discussion, e-mail admin@sovereignvaluations.com.au, or complete the enquiry form on our Contact Us page.
