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Towards Net Zero: Empowering Regional Communities

Regional Spotlight - Central West, New South Wales

Population: 212,962 (2021 Census)

Main communities: Orange, Bathurst, Lithgow, Parkes, Forbes, Cowra

Fast facts: 

  • Known for its natural produce and diverse economy, this region comprises of both temperate and elevated tablelands and semi-arid plains
  • The Central West region covers 11 local government areas and is rich in mineral, coal and gold deposits
  • The area is famous for its food and wine production, as well as tourism

Much of the region is covered by the NSW Government’s Central West – Orana Renewable Energy Zone, because of its potential for solar and wind farm projects.

Strategic initiatives for net zero transition

Renewable Energy Zones (REZs) are designated strategic areas rich in renewable energy resources, such as solar and wind, which prioritise clean energy infrastructure development to increase energy production. Several Australian states, including New South Wales, Victoria, and Queensland are developing REZs to act as hubs for renewable energy production, transmission, and storage. In New South Wales, REZs are planned for the Central-West Orana (covering much of this case study region), New England, the South-West and the Hunter Valley. 

The NSW Government’s framework for electricity infrastructure aims to transform the state’s energy sector into one main provider of cheap, clean energy by 2050. Coal power stations in Lithgow and the Central West are anticipated to close over the next 16 and five years respectively, with new investment in green hydrogen, wind and solar. 

Planning by the state government is currently underway to finalise new electricity infrastructure, but no formal declarations regarding the size, locations, and logistics have been made. There are also plans to rigorously assess the impact of transition and engage the community and industry to facilitate the smooth transition to renewable energy in the next five years. From the available strategic plans, the Central West is very much in the early stages of planning the energy transition. Council operations have moved toward net zero, but this internal transition is not yet mirrored throughout communities.

Context

There are several large regional cities in the NSW Central West, that provide key services for the district such as health, and act as local transport hubs for a range of key industries, including manufacturing and meat exporters. Tourism also features as a major industry, with Taronga Western Plains Zoo a drawcard for the Dubbo region and the Mount Panorama Motor Racing Circuit home to annual Bathurst 1000 car race. The area has major road, rail and airport linkages, including to Sydney, Newcastle and Canberra. 

Retail, agriculture, construction and food related industries also play a key role in the economy along with government regional offices. The cooler climate of the plains of the Great Dividing Range supports the production of wine and stone fruit. 

The Hunter Valley, to the north-east, is part of a broader connected economy with critical mineral mining seen as a future opportunity.

Net zero 

Councils in the region have been active in reducing internal emissions footprints through an agreed and collective effort. The Central NSW Joint Organisation is looking at net zero. 
Regional councils have set targets to reduce emissions through: 

  • Installation of solar panels on council buildings 
  • Improving and expanding water treatment plants 
  • Use of methane from landfills 
  • Council owned electric vehicles 
  • Recycling practices

The Central-West Orana has been identified as a REZ100 because of its potential for solar and wind projects that can contribute to the National Electricity Market and are proximate to the existing electricity network. 

The attitudes to the opportunities associated with REZ activity is mixed across local government areas, depending on current council strategies and priorities. While there is an understanding of net zero policies and investment already underway, it is clear that variation exists on how this is being taken up proactively. An important observation is that responses to net zero opportunities are highly dependent on the role, desire, and support of local councils.

Drivers

One of the challenges identified in the take up of new investment and development is how awareness and understanding are created across communities, particularly for those directly impacted or in many cases on the periphery of what is happening. Not all councils in the region believe they have a responsibility to undertake this role or lead a coordinated approach. As a result, much of the communication surrounding the net zero transition is coming from state departments from afar, which can impact acceptance. It also leaves a vacuum regarding the strategic approach required to achieve the best outcomes. 

This lack of knowledge, and the actions of some individual groups and proponents, can lead to opposition and decisions being made void of research and future implications. It can rely on outdated technology solutions and investments with potentially long-lasting unintended impacts. One example cited was a local business investing in the use of technology to remove waste from landfills and create energy. The model is reliant on high levels of landfill not sufficiently available locally. 

Despite this, councils in the region are considering practical opportunities for support that will build upon local council assets. 

Acknowledged as one of the factors associated with this progress to date is the role state government has played over the last 10 years with a supportive and progressive agenda for addressing climate change and net zero targets, setting the scene for NSW regions. Examples of local councillor champions advocating for the region have helped with promoting renewable energy project opportunities along with the appointment of dedicated council staff members to support. 

Success factors

At this stage, the full potential of current and future net zero opportunities remains unknown. However, there appears to be hope and confidence for the future. Research found systematic monitoring of net zero progress was not clearly evident at a local level and in some circumstances ad hoc. The Central West Joint Organisation appears to be a suitable body for developing a cohesive region-wide plan involving councils and other partners.

Development

In addition to the opportunities identified by councils, individuals and businesses are responding to the opportunities on offer. Examples include local landholders supporting solar farms on their land, as well as smallerscale investors bringing their renewable energy and recycling experience to the Central West. One prominent example is that of a business seeking to establish an e-waste and solar panel recycling plant. Their experience in successfully employing people with disabilities in their Melbourne plant could be of great benefit to local communities. So far, they have received good council support, including advice on land availability and are seeking co-investors to proceed. These entrepreneurs are exploring a range of connected projects that have social, economic and environmental outcomes. 

There are also a number of large investors, such as Squadron Energy, establishing onshore wind farms across Queensland, Victoria and the Central West. 

Partnerships

Partnerships to harness the opportunities and potential benefits they bring appear to be evolving and creating excitement about the future. There is good evidence of partnerships already in place in the Central West that draw on opportunities for collective benefit. Connecting to new innovative technologies through international industry has led to new processes for recycling being considered, along with research and development through local universities. 

The links between solar energy projects on farms and early research into benefits for livestock health is an identified opportunity. There are good examples of farmers partnering with solar energy projects, where there are more than financial benefits. Other positives include shade for livestock, pasture growth as a result of condensation from panels and directed rain. Adopters are also learning about broader opportunities with more diverse partners. For example, farmers supporting a food manufacturing development site to establish an on-site renewable energy powered circular system hub. 

There is also cross-council work on establishing a Climate Change Response Framework and energy efficiency monitoring. This could provide an introduction to a broader monitoring system, as part of the region’s progress towards net zero.

Find out how regional communities are undertaking the transition to net zero

Download the report

Interested in reading the full report?

Regional communities in Australia are joining those around the world to undertake the most significant transformation since the industrial revolution: the transition to net zero emissions.

In September 2022, the Commonwealth Government implemented the Climate Change Act (2022) detailing Australia's plan to transition to net zero by 2050. In line with the Paris Agreement, the government also pledged a 43% reduction in greenhouse gas emissions by 2030 from 2005 levels, as well as a longer-term goal of achieving net zero emissions by 2050.

In our 'Towards Net Zero: Empowering Regional Communities' report, we break down the net zero transition and highlight the impact it will have on Australia's regional, rural and remote communities.

The report was funded by the Australian Government through the Department of Infrastructure, Transport and Regional Development, Communications and the Arts; the Victorian Government Department of Jobs, Skills, Industry and Regions; the South Australian Government Department of Primary Industries and Regions; the Western Australian Government Department of Primary Industries and Regional Development; and the Queensland Government Department of Regional Development, Manufacturing and Water.

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