Western Renewables Link

Overview – About Western Renewables Link

The Western Renewables Link (Project) is a proposed new 190km overhead high-voltage electricity transmission line that will carry renewable energy from Bulgana in western Victoria to Sydenham in Melbourne’s north-west. The Project is proposed to be built, owned, operated and maintained by AusNet Services.

Whilst the Western Renewables Link is in its planning and approvals phase, landowners likely to be affected by the transmission alignment may soon receive correspondence from AusNet relating to the acquisition of an easement over their land.

Below is a concise summary of the steps AusNet must follow to obtain an easement across someone’s property. It also outlines the rights of the property owner regarding compensation for the easement, whether acquired through mutual agreement or compulsory means.

If your property is potentially impacted by the Western Renewables Link, you are encouraged to reach out to Sebastian Greenway, the Principal Lawyer and leader of the Compulsory Acquisition Practice Group at Best Hooper, or Jonathan Hourigan, a Senior Associate in Best Hooper’s Compulsory Acquisitions Team, for guidance and assistance.

Environmental and Planning Approvals

AusNet is required to prepare an Environment Effects Statement (EES) for the Project, the most rigorous environmental impact assessment process in Victoria under the Environment Effects Act 1978 (Vic).

The purpose of the EES is to ensure the Project is designed, constructed and operated to minimise adverse environmental impacts.  It gives decision-makers (such as Ministers and statutory authorities) the information they need to determine whether statutory approvals should be granted and what conditions should apply.

Once the EES has been prepared, the EES will be publicly exhibited for at least 30 days for public comment.  Other statutory approvals may also be concurrently exhibited with the EES, such as a draft Planning Scheme Amendment pursuant to the Planning and Environment Act 1987 (Vic) which makes changes to planning schemes within the project development area to facilitate the Project.

Following public exhibition, an independent Inquiry appointed by the Minister for Planning will convene a public hearing to consider submissions and evidence in respect of the EES and draft Planning Scheme Amendment. 

AusNet access to private land to undertake due diligence

Prior to constructing and operating the Project, AusNet will require access to private land to conduct its due diligence investigations.  AusNet may only enter upon private land with the consent of the landowner. 

AusNet’s due diligence investigations include inspections relating to the market value assessment of the easement which is to be acquired, together with geotechnical, ecological and cultural heritage surveys to determine the alignment of the Project.

AusNet have published The Landholder Guide: Land access, easements and compensation (AusNet Landholder Guide) which contains information about land access, easements and compensation for landholders affected by the Project.

Landowners who provide consent to AusNet to enter upon their land and undertake due diligence investigations are entitled to the payment of a ‘landholder participation fee’.  

Option Agreement for easement

Once AusNet has completed its preliminary due diligence investigations and is satisfied that a property is required for the Project’s alignment, AusNet will seek to reach agreement with the landowner for the acquisition of that easement.

This Agreement will take the form of an Option Deed, which is an agreement with you for the future grant of an electricity easement over the land, once all planning approvals are obtained by AusNet for the Project. This Deed will identify the part of the land over which an easement will be created, and will set out the terms and commercial arrangements regarding the acquisition of the easement and the payment of compensation and costs associated with the acquisition. 

In consideration of entering into the Option Deed, AusNet will agree to pay landowners an Option Fee upon exercising its future right to acquire the easement once it obtains all planning approvals. 

This Option Deed will also include the proposed easement terms and conditions which are to be permanently granted over the land.

Given that these easement terms will dictate the future use and occupation of not only the easement land, but the balance of the land, it is important to obtain legal advice to understand the impacts to the property.  We understand that each landowner has different objectives and site-specific requirements that should be considered as part of the negotiation of the Option Deed. These may include the parties’ responsibilities and liabilities in respect of:

• timing and notification for access;
• stock and fencing requirements;
• interference with natural resources;
• pest control; and
• the extent of make good and rehabilitation obligations. 

Easement compensation

Compensation is payable to landowners where an easement is acquired over their land. Other parties holding an interest in the land on which the easement is located, who suffer loss due to the establishment of the easement or construction activity, will also be considered as part of the compensation process.

The Option Deed will include the compensation amount that AusNet proposes to pay for the grant of the easement. It is essential that landowners obtain independent expert valuation advice to assess the appropriate sum of money payable for the easement.  The valuation should not merely have regard to the land which is to be burdened by the easement, but also the diminution in value to the balance of the land as a consequence of the Project.

Recovery of legal costs

AusNet, under the AusNet Landholder Guide, advises landowners that it will pay $10,000.00 (excluding GST) for a landowner’s legal costs associated with reviewing and negotiating the Option Deed. The payment of the $10,000 is not dependent on a landowner signing the Option Deed. 

AusNet also advises that, upon request, it may agree to reimburse further reasonable legal costs and professional service provider fees that exceed the initial $10,000.00 amount. 

Compulsory Acquisition

If agreement cannot be reached and an Option Deed is not executed by the parties, AusNet may seek approval from the Governor in Council to compulsorily acquire the easement over the land, in accordance with the Electricity Industry Act 2000 (Vic).  If this were to occur, AusNet would be required to adhere to the statutory procedures and requirements under the Land Acquisition and Compensation Act 1986 (Vic) (LAC Act) to acquire the easement and pay the landowner compensation. 

The key differences under the compulsory acquisition process is that no prior agreement needs to be reached with a landowner regarding the size, type and nature of the easement to be acquired, and AusNet may have the acquired easement recorded over the property’s title without the landowner’s consent. 

Should this process occur, the landowner would not be entitled to receive payment of the Option Fee, however, the landowner would be entitled to recover compensation under the numerous heads of compensation available under the LAC Act. These heads of compensation are similar to the compensation and costs that AusNet was willing to pay under the AusNet Landholder Guide to pay by agreement – i.e. market value of the easement, disturbance costs and professional and legal costs. 

However, each case is different, and it is important landowners obtain expert legal advice in respect of their rights and entitlements to compensation in their negotiations with AusNet.

The Best Hooper value

It is essential that you receive independent, expert legal advice before entering any discussions with AusNet.

Best Hooper Lawyers can guide you through the acquisition process, whether by agreement or compulsory process, from both a legal and strategic perspective, including seeking advice from property and valuation experts, to assist in valuation and strategic planning as required.  

We have a broad range of experience across public infrastructure projects and understand the stages involved in these large scale projects that may affect a person and their proprietary interest in land. 

We have recently assisted landowners affected by the following major infrastructure projects:

• Suburban Rail Loop Project;
• Melbourne Airport Rail Project;
• APA’s Western Outer Ring Main (WORM) Pipeline;
• North East Link Project;
• West Gate Tunnel Project; and
• Melbourne Metro Rail Project.

We would be pleased to assist in providing advice and representation to any person affected by the Western Renewables Link.