The New South Wales government has signaled that significant local sacrifices are inevitable as it pushes forward with the New England Renewable Energy Zone (REZ). Energy Minister Penny Sharpe recently acknowledged that the transition to cleaner power involves “tricky trade-offs,” emphasizing that the fundamental necessity of “keeping the lights on” outweighs some of the localized grievances regarding land employ and property values.
The tension centers on the Upper Hunter transmission lines, a critical piece of infrastructure designed to link renewable energy sources to the grid. While the government maintains the project is essential for state energy security, a growing coalition of farmers and residents argue that the current plans threaten the viability of prime agricultural land and the economic stability of small rural townships.
The conflict has intensified following a route revision by EnergyCo, the state-owned agency responsible for delivering the REZ. In October last year, the proposed path for the transmission lines was altered to include a 3-kilometre-wide corridor that runs east of Scone, cutting through the Gundy Valley and extending into the Walcha Shire. This shift has moved the infrastructure closer to productive farms and residential areas, sparking a wave of opposition from the Upper Hunter Responsible Infrastructure Group (UHRIG).
The new corridor will run east of Scone through the Gundy Valley. (Supplied: EnergyCo)
The Cost of Energy Transition: Land and Value
For landholders in the path of the corridor, the “difficult trade-offs” mentioned by the minister are not theoretical—they are financial and existential. Residents from Rouchel to Walcha have expressed a unified opposition to the revised route, citing the potential for a collapse in property valuations. Domonique Travers, a resident of Timor, warned that the installation of the transmission corridor could effectively destroy land values to the point where families would be forced to relocate.
Domonique Travers is worried the transmission lines will reduce her property value. (Supplied: Domonique Travers)
Minister Sharpe recently met with UHRIG members to hear these concerns firsthand. While she stated she is taking the issues on board and forwarding questions to EnergyCo, her stance on the overall project trajectory remains firm. She noted that while there is room for minor adjustments during the process, a complete change of the route is “probably less likely.”
This tension highlights a broader struggle within the NSW energy transition strategy: balancing the urgent need for grid modernization with the protection of rural livelihoods. The original route announced in March 2024 began in Muswellbrook and ran west of the Gundy Valley, which was viewed by some as less intrusive than the current proposal.
Searching for a Middle Ground
Despite the friction, some community members are still seeking a pragmatic compromise. Libby Crouch, whose Waverley property falls within the proposed corridor, expressed hope that the Minister’s visit might lead to tangible mitigation efforts. Crouch suggested that EnergyCo could improve the outcome by actively working to reduce risks related to bushfires and environmental degradation, and by minimizing the physical footprint on farming operations.
EnergyCo CEO Hannah McCaughey has attempted to soothe these fears by explaining the technical refinement of the route. According to McCaughey, the project is moving from a broad 3-kilometre study corridor toward a final footprint of just 140 metres. She argues that as the specifics of construction and the ability to maintain farming operations around the infrastructure become clearer, the community will find the project more acceptable.
EnergyCo has collected feedback from more than 800 people on the proposed route. (ABC News: Jack Colantuono)
A Breakdown of the Route Evolution
| Detail | Original Route (March 2024) | Revised Route (Oct 2023/Current) |
|---|---|---|
| Starting Point | Muswellbrook | East of Scone |
| Key Areas | West of Gundy Valley | Through Gundy Valley |
| Termination | Walcha (near Highway) | Walcha Shire |
| Corridor Width | Not specified | 3km (Study phase) |
Eroding Trust and Professional Fallout
The technical disputes over land use have been compounded by a breakdown in trust between the community and the project’s executors. Tensions peaked recently when an EnergyCo contractor was terminated after being overheard making disparaging remarks about a landowner in a Scone cafe. The contractor allegedly referred to a local resident as “crazy” during a video call, an incident that Domonique Travers described as a display of “arrogance” that undermined the agency’s standing in the community.
During evidence given to a NSW parliamentary inquiry into the impacts of Renewable Energy Zones, CEO Hannah McCaughey confirmed the contractor had been stood down. She described the event as “regrettable and unfortunate,” stating that the agency maintains a “zero tolerance” policy for such behavior to uphold professional standards.
The incident serves as a flashpoint for the wider emotional toll of the project. For many in the New England region, the struggle is not just about the physical placement of poles and wires, but a feeling of being disregarded by a distant bureaucracy in the name of a state-wide energy mandate.
The future of the New England REZ now rests on whether EnergyCo can move beyond “listening” and implement meaningful changes to the transmission path. The next critical phase will involve the finalization of the 140-metre corridor, which will determine exactly which parcels of land are impacted and whether the government’s promised mitigations are sufficient to prevent the property value collapse feared by local farmers.
We invite readers to share their perspectives on the energy transition and its impact on rural communities in the comments below.
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