Major community benefits announced as part of Capacity Investment Scheme
The Kentbruck Green Power Hub wind farm has been selected in the first NEM Generation tender round of the Commonwealth Government’s Capacity Investment Scheme (CIS). Kentbruck was the only Victorian wind farm to be selected.
Broadly, the CIS aims to:
- help deliver the Australian Government’s 82% renewable electricity by 2030 target;
- deliver an additional 32 GW of capacity by 2030;
- support electricity generation growth and reliability as demand grows and ageing coal power stations retire; and
- place downward pressure on electricity prices.
The Project’s success in the first CIS tender round is a result of its competitive economic bid (due to its large project size, sitting in a region with a strong wind profile and relatively close proximity to existing transmission capacity) and its strong Community Benefits Program.
The Community Benefits Program includes:
- $150k per year for the 30 year life of the project to community projects such as sports clubs, tourism and heritage via an annual grants process
- $300k per year for 30 years to neighbours of the project, paid in accordance with distance to turbines and with no obligations on behalf of the neighbours.
- a $1m per year fund will be allocated towards the sponsorship of ecological studies, protection activities, and species recovery projects;
- more specific commitments to First Nations people, which will be agreed with the Gunditj Mirring Traditional Owners Aboriginal Corporation and announced following that agreement
- $50k per year for three years to support training for school leavers to facilitate employment in the local renewables workforce
- $120k per year for two years to employ a local renewable energy workforce lead to who will be responsible for engaging with the local workforce and suppliers on site;
- Workforce participation goals for balance of plant labour which includes 25% local participation (Victoria and Mt Gambier), 3% First Nations people and 10% apprentices; and
- Local content commitments of over $520m of capital expenditure and over $270m of ongoing operations and maintenance, to be spent throughout the project’s life. This means a substantial requirement for Australian and New Zealand-sourced workforce and equipment.
Successful CIS Round 1 projects were announced on 11 December 2024. The 19 projects which were successful represent a total of 6.4 GW of generation capacity.
