Strategic Benefit Payments Scheme
The NSW Government has committed to a plan to transform NSW’s electricity system into one that is cheaper, cleaner, and more reliable.
Under the NSW Electricity Infrastructure Roadmap (the Roadmap), NSW is moving towards an energy system based on renewable energy generation backed up by long-duration storage and connected to regions and cities by new transmission infrastructure to replace coal-fired generation. Communities and businesses across NSW will all play a part in, and benefit from, this transformation and cheaper, cleaner and more reliable energy supply.
Building this infrastructure in the time needed to ensure energy security, supply and affordability is becoming increasingly critical as coal-fired generation retires.
To facilitate the timely delivery of a modern electricity grid for NSW that benefits both consumers and communities, the NSW Government is establishing a Strategic Benefit Payments Scheme (SBP Scheme) for new major transmission projects.
Under the SBP Scheme, private landowners in NSW will receive annual payments for hosting certain infrastructure associated with new major high-voltage transmission projects that are critical to the energy transformation and the future of the energy grid on their land for a period of 20 years.
This includes Renewable Energy Zone network infrastructure projects, priority transmission projects and other transmission projects identified in the Australian Energy Market Operator’s Integrated System Plan. The payments are a set rate of $200,000 (in real 2022 dollars) per kilometre of transmission hosted, paid out in annual instalments over 20 years.
These benefit sharing payments are in recognition of the critical supporting role these landowners will have in hosting the new energy infrastructure that will power the State into the future and to ensure they share directly in the benefits of this significant economic investment.
These payments are separate, and in addition to, any compensation that is paid to landowners for transmission easements on their land in accordance with the Land Acquisition (Just Terms Compensation) Act 1991.