NSW Clean Energy Approvals Greater Source Of Delay Than Federal EPBC, As Wind Farm Approval Costs Reach Up To $100 Million: Survey

Onshore wind energy projects, including those with battery energy storage system (BESS), face the highest average costs¹ for obtaining State significant development (SSD) consent in New South Wales (NSW) - up to $25 million, with some projects reaching up to $100 million, according to a new Herbert Smith Freehills Kramer (HSF Kramer) pulse survey.²

State significant wind and solar energy projects can take up to 12 months on average to prepare and lodge a scoping report with the NSW Department of Planning, Housing and Infrastructure (DPHI)³ to commence the formal assessment process. And, in the last five years, average approval timeframes in NSW add another 1,167 days for wind and 993 days for solar with BESS.⁴ Industry says total costs to secure planning approvals are higher for most clean energy projects in NSW compared to other States and Territories.

Two thirds (67%) identified assessment under the SSD planning framework–the primary approval pathway for major clean energy projects in NSW–as a greater source of delay compared to referral and approval under the Federal Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

The findings are part of HSF Kramer's pulse survey on the NSW planning approval framework for clean energy projects. It included 67 representatives from nearly 40 organisations involved in delivering or financing clean energy projects–primarily solar, BESS and wind–across NSW, Australia and the globe.

HSF Kramer senior environment, planning and communities' partner, Peter Briggs, said: "Industry says lengthy processes, such as the time to prepare an environment impact statement or submit a development application, as well as independent assessment by the Independent Planning Commission and Court appeals, are the common causes of delay under the SSD pathway.

"The NSW Government recently introduced a new Planning Systems Reforms bill⁵ to address some of these challenges and streamline application and assessment processes in a positive step for the sector. However, our survey suggests more can be done to support faster delivery of critical clean energy projects," Peter said.

Broader use of Critical State Significant Infrastructure (CSSI) pathway or a dedicated fast-track approval pathway; simplification of Environmental Impact Statement (EIS) preparation; and raising the threshold for independent review are the top opportunities cited to reduce approval timeframes.

"Greater use of the CSSI pathway for State significant clean energy projects is the number one reform backed by industry which would significantly reduce approval timelines. It also does not require legislative change to implement.

"Projects are approved much faster under CSSI because the decision sits with the Minister and there is no trigger for Independent Planning Commission involvement and no merits appeal to the NSW Land and Environment Court, which together contribute to major delays." Peter said.

For projects assessed under the SSD pathway, industry (63%) are supportive of the role of the Independent Planning Commission (IPC) in determining certain project development applications, however, believe the threshold should be higher.

"Anecdotal feedback suggests it is too easy to trigger an independent review via 50 individual public objections from anywhere in Australia or council objection, which adds months to the approval process.

"To help reduce the number of projects referred to the IPC and speed up approvals, industry has suggested raising the public objections threshold, limiting local council objections and assessing the relevance and locality of a submission before the IPC can get involved," Peter said.

Over half (57%) were undecided on whether the proposed NSW Investment Delivery Authority (IDA) would help to speed up clean energy project delivery, despite 60% of respondents having estimated project development costs of over $1 billion. Industry are mostly neutral or positive about the impact of the renewable energy framework. Almost 90% do not believe the state's renewable energy targets will be met.⁶

"With almost 90% of respondents highly valuing certainty and speed when choosing where to invest or deliver clean energy projects, NSW has strong incentive to consider further reforms to support investment and its energy transition goals," Peter added.

For the full survey findings, read our NSW Planning Approvals for Clean Energy Project Pulse Report 2025.

Footnotes

1. 38 project developers provided information on the time and costs of securing a primary planning decision in NSW

2. Survey period: 3 – 26 September 20

3. 38 project developers provided information on the time and costs of securing a primary planning decision in NSW

4. Approximate figures from HSF Kramer analysis of the DPHI Major Projects database. Analysis separate from survey responses.

5. Environmental Planning and Assessment Amendment (Planning System Reforms) Bill 2025

6. NSW targets: 16 gigawatts (GW) of new renewable electricity generation by 2030 and 42 GW-hours (GWh) by 2034 for long duration storage

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