Fiona and Rob Duff could have earned millions hosting wind turbines on their rural property, but the Queensland farmers say they decided against the extra income.
For them, rejecting the potential cash flow was not an ideological decision about climate change or energy.
They were concerned about the lack of certainty over who would foot the bill to dismantle old wind and solar technology if an operator went bust.
“People are being very driven by the dollar, and I think that they’re very short-sighted,” Mrs Duff said.
“A lot of people are going to get severely burned by agreeing to having a turbine and being left with having to take it down themselves.
“And if they can’t do it, they’re going to expect the government to take them down.”
The decommissioning of renewables projects is a hot topic in regional communities. (ABC Rural: Brandon Long)
Who is responsible for decommissioning?
Landholders can earn up to $750,000 per turbine over a 25-year life span, according to figures from the federal government’s independent advisor, the Australian Energy Infrastructure Commissioner (AEIC).
The commissioner says most planning permits state the project owner is responsible for decommissioning, but in the event of their default, “the liability may ultimately rest with the landholder”.
And while landholders can ask energy companies for a bank guarantee, trust fund or bond, it is currently not legally required in any state or territory.
Fuelling concerns, a senior government official has said the clean-up could “come back to the state eventually”.
The AEIC estimates it could cost $600,000 to remove one turbine and restore the site.
It is why the Duff family, along with others, is urging the next Queensland government to clarify and strengthen the decommissioning process.
Mr Duff says he is not willing to take on the financial risk of hosting turbines. (ABC Rural: Brandon Long)
The Duffs’s farm is on the edge of the Wambo Wind Farm at Diamondy, north-west of Brisbane.
The project, which is a joint venture between UK-headquartered Cubico and state government-owned Stanwell, will comprise at least 80 turbines when it is finished.
Most landholders who are part of the project have multiple turbines.
Already, the Duffs look out past their green paddocks and black cattle to towering white structures going up in the east and south and, soon, from the west.
Most landholders who are part of the Wambo Wind Farm have multiple turbines. (Supplied: Wambo Wind Farm)
A Wambo Wind Farm spokesperson said the joint owners were highly reputable, had years of experience, and operated energy assets for the long term.
“It is the responsibility of the energy company, not the landholder, to undertake decommissioning and rehabilitation of wind turbines when they come to the end of their operating life,” they said.
Nevertheless, there have been increased warnings across the state that farmers or taxpayers could be lumped with the costs if stronger measures are not in place.
Brent Finlay says the growth of the wind industry reminds him of the expansion of coal seam gas. (ABC News: Nathan Morris)
Host suggests legal advice
Brent Finlay farms in southern Queensland and hosts 20 wind turbines while also acting as an advisor for a renewable consulting company.
The former National Farmers’ Federation president said hosting projects could provide valuable income for farmers to offset tough seasons but agreed decommissioning had to be addressed quicker than in the gas industry.
“It took a long time for governments to catch up to where the industry was and put some very strict rules [and] legislation around the industry,” he said.
“[The renewables] industry also needs that.”
Mr Finlay encouraged landholders to seek legal advice before entering contracts but stressed that unlike resource projects, landholders could say no to renewables.
Labor says renewables here to stay
More than 60 large-scale renewable projects have been switched on across Queensland, including 45 solar farms, seven wind farms, 11 battery storage systems and one pumped hydro plant.
Another 24 projects are under construction, with a further 177 proposed.
In a statement from the office of Energy Minister Mick de Brenni, a spokesperson said Queensland was transforming its electricity system to achieve 80 per cent renewable energy by 2035 — rendering decommissioning of most renewable projects extremely unlikely.
“Wind and solar farms will stay where they are and will be upgraded as technology improves in the decades ahead,” they said.
The spokesperson said the state’s oldest turbines, built in 1997 on Thursday Island, had recently received a $2 million refurbishment, extending their life for another 15 years.
National renewables association, the Clean Energy Council, also points out that Australia’s first wind farm, built in 1987 near Esperance in Western Australia, was successfully decommissioned in 2002 by the project owner.
On Monday, Labor announced it had updated the state Wind Code, “strengthening protections for communities and the environment”, and developed a draft Renewables Regulatory Framework for consultation, which proposes to explore initiatives such as “including financial assurance for decommissioning.”
It is unclear if this will require a mandatory bank guarantee or bond.
The announcement comes after a recent renewable energy development forum in Miles, a rural community west of Brisbane, where a senior government official said taxpayers could get the bill.
David Shankey says the state government is still working out the details around decommissioning. (ABC Rural: Brandon Long)
When questioned by the community, Department of Energy and Climate’s David Shankey said it was an issue they had already experienced in the mining industry, with the state left to mop up damage when companies walked away.
“We are going to have to look for a way to either enforce that on companies, or it will come back to the state eventually,” Mr Shankey said.
He said the state government did not want to repeat past mistakes and was working on “a stronger decommissioning process”.
At the same forum, Queensland Renewable Energy Council’s Andrew Brier, representing developers, told the community: “The development of a state-held framework, which actually provides that rigour, I think is the solution.”
Andrew Brier says a decommissioning framework is needed. (ABC Rural: Brandon Long)
With Queenslanders heading to the polls in a few weeks, shadow energy minister Deb Frecklington said ambiguity around decommissioning was “costing Queenslanders”.
She said the LNP had already flagged that any decommissioning of renewable energy infrastructure needed to be part of a code of conduct for proponents.
