An inquiry into and report on the impact of Renewable Energy Zones (REZs) on rural and regional communities and industries in New South Wales. It makes six findings and five recommendations.

Renewable Energy Zones are a key part of the state's energy transition, which is moving largely from coal-fired power plants towards renewable energy sources. There are five REZ locations in New South Wales: Central-West Orana, New England, Hunter-Central Coast, Illawarra and South West region. The development and implementation of REZs are within rural and regional communities. 

While the inquiry was established to investigate the impact of all REZs in New South Wales, a significant amount of evidence focused on the Central-West Orana REZ (CWO REZ). This is understandable as the CWO REZ is the first of its kind and is far more progressed than the others. As such, this first report shines a light on the CWO REZ, its unfolding impacts in the community and to help ensure that the same mistakes do not occur in the other REZs as they progress.

Findings

1. A significant proportion of the Central-West Orana community believe the CWO REZ has negatively impacted the region.
2. There are 31 renewable energy projects which have applied to the planning system inside the CWO REZ. Not all projects are guaranteed to proceed, noting that this uncertainty is causing community concern.
3. There has been inadequate consultation between the NSW Government, renewable energy developers and the Central-West Orana community. This has had significant repercussions.
4. There are concerns within the Central-West Orana community about the impact on its agricultural industry.
5. Despite assurances from the NSW Government and renewable energy proponents, landowners who neighbour renewable energy developments maintain concerns around access to, and suitability of, public liability insurance for their properties.
6. The CWO REZ has caused significant challenges for local councils in the region.

Recommendations

1. The NSW Government urgently conduct an independent cumulative impact study on the CWO REZ and ensure identified impacts are addressed.
2. EnergyCo to provide mental health support to landowners who are affected by the CWO REZ.
3. The Department of Planning, Housing and Infrastructure (DPHI) review the use of Social Impact Assessments.
4. The NSW Government investigate options to ensure payments for land acquisition are not taxed.
5. The NSW Government identify ecological protection and restoration priorities for each REZ and encourage developers to contribute to nature positive environmental regional outcomes.