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Question and Answer Tracking Details

109 - SOLAR FARMS AND PUBLIC LIABILITY INSURANCE

Farraway, Sam to the

My question is directed to the Minister for Energy. Farmers with properties adjacent to solar farms, including those in Glanmire on the outskirts of Bathurst, have been refused public liability insurance due to the potential damages arising from a crop fire that spread to the neighbouring solar farm. What steps has the Minister taken to address that issue?
Original Answer -

The Hon. PENNY SHARPE (Minister for Climate Change, Minister for Energy, Minister for the Environment, and Minister for Heritage) (11:46:19): I thank the Hon. Sam Farraway for his question, and I understand that it was also asked in the other place of my colleague the Hon. Anoulack Chanthivong.

The Hon. Damien Tudehope: It is a big issue.

The Hon. PENNY SHARPE: If members opposite will let me answer it, I will do that. I thank the Leader of the Opposition for his help. I really appreciate his input, but I do not need it.

The PRESIDENT: Order! Let us try to get direct relevance, 25 seconds in.

The Hon. PENNY SHARPE: The need for public liability insurance is very important. The issue has not come across my desk to date but is obviously one that I am concerned about. I understand that the fire risk for renewable energy projects is very low. There are fire risks around transmission lines. The biggest fire risks are extreme weather events, lightning strikes and, unfortunately, too many issues around arson. But I will get some more information from my department; I would be surprised if the staff are not across it. I will find out what action they have taken and come back to the member with an answer.
Additional Answer -

The issue of landholders on neighbouring properties to renewable energy developments potentially being impacted by increased public liability insurance costs was raised in the NSW Agriculture Commissioner’s 2022 report, Renewable Energy Generation and Agriculture in NSW’s Rural Landscape and Economy.

The Department of Planning and Environment’s draft Private Agreement Guideline, which is currently on public exhibition, also highlights the need for renewable energy developers to consider negotiating agreements with neighbouring landholders that may be materially impacted by their project.

Although the indemnification of liabilities is a commercial matter between developers and landholders, including those adjacent to renewable energy developments, my department will continue to engage with relevant stakeholders to monitor this issue.

Question asked on 29 November 2023 (session 58-1)
Answer received on 20 December 2023

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