Easement Payments

The Strategic Benefit Payments Scheme is a payment of $200,000 per kilometre of transmission hosted for new major transmission projects critical to the energy transformation and future of the electricity grid, paid out in annual instalments over 20 years, beginning once the relevant project is energised (i.e operational). This means a landowner hosting one kilometre of transmission line would be paid $10,000, by Transgrid every year for 20 years once the line is operational (switched on). The payment is adjusted each year for inflation, based on the Consumer Price Index.

The SBP Scheme is separate to compensation for the acquisition of easements for new transmission projects, which will still be governed by the Land Acquisition (Just Terms Compensation) Act 1991.

These payments are an acknowledgement of the important role private landowners play in supporting New South Wales’ transition to a low-emissions electricity system. New transmission infrastructure is critical to connecting renewable energy sources to where they are needed the most across NSW’s regions and cities.  The SBP Scheme will ensure that landowners who host these new vital major transmission projects receive tangible benefits for participating in building an energy grid that supports the future of all people in NSW.

Transgrid was a key industry stakeholder involved in NSW Government consultation on the proposed payment program and advocated in favour of a change to existing arrangements which had previously inhibited Transgrid’s ability to make annual payments to landowners hosting new projects.

The SBP payment will only be paid to private landowners whose properties are hosting new major transmission projects critical to the energy transformation and future of the electricity grid. This includes transmission projects identified in the Australian Energy Market Operator’s Integrated System Plan (ISP) such as HumeLink and Project Energy Connect, Renewable Energy Zone network infrastructure projects and priority transmission infrastructure projects under the NSW Government’s Electricity Infrastructure Roadmap.

This includes private individuals or corporate entities that own land in NSW. Private holders of a Western land lease granted under the Western Lands Act 1901 are also eligible to receive SBPs. SBPs are not applicable for holders of other minor interests on the title of the land (such as leases, licences or easements).

Public landowners (i.e land that is not owned by a private individual or company) are not eligible to receive SBP.

Eligible landowners will not have to apply to the SBP Scheme. Work is underway to implement the scheme into Transgrid’s processes.  We will contact eligible landowners to explain their individual circumstances.

It is important that we have the correct contact details for landowners, please contact Transgrid on 1800 222 537 to ensure your details are up to date.

The SBP Scheme applies to all major transmission projects that are critical to the energy transformation and the future of the energy grid.  Projects that meet this definition include priority transmission infrastructure projects, Renewable Energy Zone network infrastructure projects and transmission infrastructure projects identified in the Australian Energy Market Operator’s Integrated System Plan that are energised after the date of implementation of the SBP Scheme. 

Examples of eligible projects that are underway or in early planning and development include current Transgrid projects EnergyConnect, HumeLink, and VNI West, and the Hunter Transmission Project, the New England Transmission Project and the Central-West Orana REZ Transmission Project.  For eligible projects, SBPs are required for:

• New major transmission lines with a voltage of at least 330 kV
•  Increasing the voltage of existing lines that involves significant new works- such as increasing the width of easements to accommodate additional towers.

SBPs are not required for:

• New substations
• Rebuilding existing transmission lines that do not involve significant new works, such as replacing existing towers
• Augmentations or upgrades to the existing transmission network, including existing substations
• New transmission and distribution lines and any associated works with a voltage of less than 330kV
• Existing transmission and distribution lines.

For eligible projects and works, payments are based on the length of the line required for a single set of transmission towers for the transmission infrastructure. If the transmission project requires two sets of towers (and subsequently two lines or parallel lines), the landowner will receive a SBP for each set of towers/lines for the project (that is, two payments).  There is no difference in payment for different voltages or different tower designs.

No. These payments will be in addition to the compensation paid to landowners for transmission easements under the Land Acquisition (Just Terms Compensation) Act 1991.

Payments will come into effect after construction of transmission infrastructure is complete and is energised. It is proposed that the first payment would be made no later than three months after energisation of the new transmission project and will be paid annually after that on the anniversary of energisation.

The SBP payment was set by the NSW Government after examining the balance between the critical importance of ensuring the new transmission network is rolled out in a timely way, the costs of payments with the consumer benefits of timely and efficient delivery of new transmission infrastructure and ensuring that private landowners hosting the transmission infrastructure for these projects share directly in the benefits of the projects.

The 20-year period is generally consistent with the access rights that will be granted to renewable energy generation and storage projects to connect to the new transmission infrastructure in renewable energy zones under the NSW Roadmap and Electricity Infrastructure Investment Act 2020.

It is structured to ensure that the private landowners hosting new transmission infrastructure will receive a share of the benefits of the infrastructure, and that if the ownership of land changes over time, then the new landowner will continue to receive any future SBP payments.

If the land is sold or transferred to a public entity within the 20-year period, SBP payments would no longer be paid. 

Payments will be made by Transgrid. The cost of implementing the SBP Scheme will be included as part of the cost of delivering the new transmission infrastructure which is currently recovered from consumers. The implementation of the scheme will ensure that landowners, communities and consumers mutually benefit from the timely and efficient delivery of transmission infrastructure that supports the future security of the electricity network.

The payments do not apply to existing transmission assets – rather they only apply to major new high voltage transmission projects proposed under the ISP or the NSW Roadmap that are critical to the energy transformation and future of the electricity grid.

The NSW Government is consulting with key stakeholders on the options around administrative arrangements to ensure that the SBP Scheme is being appropriately and effectively implemented by the Network Operator (Transgrid). The payments are in recognition of landholders hosting transmission line, and therefore are likely to be a direct payment to the private landholders from network operators.

Transgrid will continue to seek negotiated compensation agreements in line with the Land Acquisition (Just Terms Compensation) Act 1991, and the SBP Scheme will be applied in addition to negotiated compensation.

The SBP Scheme will be applied independent of, and in addition to, negotiated compensation.

Yes – the payment applies regardless of whether there are physical structures on the property.

The SBP payment will be pro-rated. For example, if a property has 1.5km of transmission lines, the annual payment will be approximately $15,000 for each year for 20 years plus adjustments each year based on the Consumer Price Index.

Each individual case will be different depending on ownership of the property, operation of any business on the property, and a range of other factors. We encourage landowners to seek independent tax advice about the treatment of the SBP Scheme.

Contact Transgrid on 1800 222 537 to ensure your bank details are up to date.