Regional NSW land owners will be offered $200,000 per kilometre, in exchange for hosting transmission wires on their properties, as the Perrottet government looks to ramp up renewables.
The Strategic Benefit Payments Scheme, announced by the NSW government on Tuesday, is designed to support a changing energy grid, as more renewable energy sources come online.
NSW Treasurer and Energy Minister Matt Kean said the first of its kind scheme would maximise the economic benefits brought about by new infrastructure to bolster regional communities.
Payments will be given to landowners in instalments, indexed to CPI, over 20 years.
The scheme would see landowners receive at least $10,000 annually for each kilometre of transmission wire they house.
Participating landowners will begin receiving payments once the project is energised.
The scheme has been backed by Farmers for Climate Action, who said it has the potential to speed up the delivery of renewable energy across the state, and give farmers a stable source of income.
Mr Kean said regional landowners will double the average payment they already receive, and landowners would be treated equitably across the state - regardless of where they lived.
"The scheme is part of our commitment to share the benefits of a reliable, clean and affordable energy grid with the landowners, who will have a vital role in supporting the delivery of critical transmission infrastructure that will make this possible."
Building new transmission lines is critical to connecting new renewable energy sources to the grid in NSW, and the majority of new transmission infrastructure will be built in regional NSW, Deputy Premier and Regional NSW Minister Paul Toole said.
"NSW has the most ambitious renewable energy policy in the nation, which is needed to replace the state's ageing coal fired power stations and build a clean energy future for NSW," Mr Toole said.
He said supporting regional landowners would ensure the network is built.
CEO of Farmers for Climate Action Fiona Davis said the project set the benchmark for transmission line payments across Australia, and urged the Commonwealth and other states to look to the Perrottet government's policy.
"Alternative income is so important during times like droughts, or in recovering from floods, which climate change has already brought far too much of," Dr Davis said.
"Farmers who have alternative income during drought keep employing locals and spending money in local pubs, cafes and retail stores."
