A growing number of renewable energy projects across Australia are presenting challenges for existing national waste management and decommissioning systems. What does the future hold for these retiring renewables?
Need to know
- New energy facilities such as wind farms, solar PV projects, and battery energy storage systems require decommissioning processes to facilitate a circular project life cycle.
- While there is no national legislative basis for decommissioning renewable energy facilities in Australia, guidelines have been released at both federal and state levels, shifting the onus onto developers at the planning stage to consider and appropriately budget for the decommissioning of their sites.
- The process of decommissioning differs greatly for each type of renewable technology, with each presenting their own challenges and solutions.
- It is expected that in 2025 and beyond, government and industry stakeholders will increasingly regulate the process of decommissioning renewable energy projects and begin to standardise such processes across the energy industry.
As more renewable energy assets reach their end-of-life stage, it’s important to consider what comes next. At the end of an asset’s operational life, the owner is generally required to remove the asset, including any requisite materials, and remediate the land to its original state or a state that is appropriate for future use. This is a process known as ‘decommissioning’.
The ever-increasing amount of new energy facilities such as wind farms, solar panels, and battery energy storage systems (BESS) necessitates accessible and centralised decommissioning processes to facilitate a circular project life cycle. In fact, the share of electricity generated by renewable sources is forecast to rise from 10.5% in 2010 to 46% in 2030, demonstrating the necessity of waste management systems to scale accordingly.1 The retiring of renewable infrastructure, recycling of assets and remediation of sites therefore constitute an important process within the project life cycle, ultimately restoring the utility of the land and reducing the use of new materials in the production of new assets.
Current process for decommissioning renewable facilities
While there is no national legislative basis for decommissioning renewable energy facilities in Australia, guidelines have been released at both federal and state levels. The Australian Energy and Infrastructure Commissioner (AEIC) released a guideline, ‘Considerations for Landholders before entering into Commercial Agreements’, in January 2023 which recommended that matters relating to the retirement of renewable projects should be addressed in the lease agreement. The guideline shifts the onus onto developers at the planning stage to consider and appropriately budget for the decommissioning of their sites.2
At a state level, the NSW government released guidelines for renewable energy projects in November 2024 (NSW Guidelines). The NSW Guidelines affirms the government’s intention to impose conditions on all wind and solar energy projects to be decommissioned at end-of-life, reaffirming the onus of decommissioning infrastructure as on the developer, and contains a decommissioning calculator to facilitate informed investment decisions.
The Victorian Environmental Protection Authority (EPA) is granted legislative powers under section 54(2)(j) of the Environment Protection Act 2017 to impose conditions on the cessation of permitted projects. The EPA has imposed conditions on operating licenses to prepare and maintain a decommissioning plan throughout the course of the project life cycle – aligning with the AEIC guidelines in respect of Victorian projects.
These recommendations contrast with international regulations that are more proactive in addressing renewable industry waste. For example, Italy introduced Legislative Decree No. 49, instituting obligations for the decommissioning of solar projects.3 Italian developers possess an extended producer responsibility for waste electrical equipment, requiring evidence of financing for the decommissioning process and organisation for the collection, treatment, recovery and disposal of equipment.4 The decree also creates a national register for producers which lists regular reporting of quantities of electronic waste material placed on the market for recycling and collection.5
This example posits the question as to whether Australia, as a growing renewable energy powerhouse, should develop more stringent regulations that require developers to consider and accommodate the local environment, with consequences which reflect, and are proportionate to, the importance of decommissioning.
Currently, the process of decommissioning differs for each type of renewable technology.
Wind turbines
The NSW Guidelines provide that development consent will be granted on the condition that the developer will decommission and rehabilitate the project site.6 Accordingly, projects that require a development consent must address the issues associated with decommissioning a site within their application, considering dust and noise generation, increased traffic or traffic disruptions and risks to land viability, amongst others.7
However, not all aspects of a wind energy proposal will need development consent. For example, wind monitoring systems, that would be used to determine the feasibility of a wind resource, do not require planning consent under the Transport and Infrastructure State Environmental Planning Policy.8
This eases some procedural burden and regulatory delay by eliminating the consent required for initial testing of a sites prospects; though conversely, this means these initial testing procedures may not be subject to specific decommissioning requirements.
On 4 February 2025, the new Queensland State code 23: Wind farm development took effect. Development applications for development permits for wind farms are assessable against the code. The code essentially requires a development application to be supported by a decommissioning report and plans. The conditions of any approval will include conditions requiring proponents to:
- prepare and lodge an End of Construction Decommissioning Management Plan prior to the finalisation of construction of the wind farm;
- prepare and lodge an End of Operation Decommissioning Plan six months prior to the ceasing of a wind farms’ operations; and
- provide financial security that will ensure timely compliance of decommissioning at the end of construction and at the end of operations – at no cost to the landowners or the government.9
Whilst much of the decommissioning process will be specific to each project site and dealt with on a case-by-case basis in the landholder agreement, the primary options are typically:
- replacing the wind turbines with new technology (subject to landholder agreements, planning approvals and the condition of the equipment); or
- decommissioning the project in part or in full.
In circumstances of replacement, a new development consent may be required, resulting in a revised decommissioning process to be proposed in respect of the replacement technology. However, if it is a mere refurbishment of the turbine to its original operating capacity, this will not typically require a new application as ongoing maintenance is often permissible within the terms of an existing contract.
Alternatively, if a developer wishes to cease operation of a wind project, decommissioning will follow the reverse order of installation.10 This includes dismantling the turbine and its components, removing the above-ground ancillary infrastructure and restoring the site, with particular consideration to ecologically sensitive zones, to its final agreed land usage within 18 months of operations ceasing.11 Below ground cabling, conduits and transmission infrastructure may be retained on-site to support the ongoing use of the land for residential or agricultural purposes.12
Solar panels
The decommissioning of solar projects follows a similar process to wind turbines, including the distinction between replacing or refurbishing a site or ceasing operations, following the reverse order of installation and allowing ancillary transmission infrastructure to remain in situ.
Indeed, the NSW Guidelines utilise much of the same language to describe the obligations of developers for both wind and solar projects.13 However, whilst wind turbines are notoriously difficult to recycle, solar panels have many avenues by which they may be reused as panels elsewhere or broken down for collection of requisite materials. To read more about solar panel recycling please see our previous article, ‘Australia’s Solar Panel Recycling Challenge and Market Outlook’.
An important note for landholders who may be considering the development of renewable projects on their land, regardless of the type of technology, is that the development consent applies only to the land and not to a particular company or developer. Thus, whilst the obligation of decommissioning and rehabilitation is initially on the developer, the obligation may fall on the landholder if the developing company becomes insolvent. The landholder should have a clear understanding of a developer’s plans to manage the decommissioning phase and may request assurances as to funding for the process, including ongoing evidence of financial capacity.
Batteries
The use of BESS in both solar and wind farms is becoming increasingly important as a means of stabilising the grid and securing consistent energy supply, even at times of low renewable energy production.14
The NSW Guidelines address the role of BESS through the lens of solar or wind recommendations – thereby binding the developer to undertake the requisite decommissioning process, inclusive of BESS.15 Yet, batteries often have differing procedures to the normal decommissioning process, such as the initial stage to de-energise the battery, so as to avoid electrical risk when disassembling,16 which may require additional regulatory guidance.
To this end, the National Waste Policy Action Plan (2024) seeks to amend waste management practices in Australia by coordinating a national approach to battery disposal and recycling, setting a recovery target of 80% for all waste by 2030. The plan came as a continuation of the Labor government’s National Battery Strategy that directs funding in the 2024-25 May Budget and Future Made in Australia Innovation Fund toward strengthening battery manufacturing capabilities nationwide.
Thus, whilst the federal government ramps up domestic battery production, the complimentary waste management plan seeks to address the socio-environmental complications associated with increased battery manufacturing.
Battery recycling is also an essential aspect of decommissioning a BESS project, particularly as it pertains to the realisation of a circular economy, as the raw materials used in these batteries can be reused in a multitude of ways. For example, heavy metals recovered from batteries, such as cadmium, can be reused in new alloys, electroplating, solar cells, or remade into another battery.17
Considering the rise of the renewable energy market, both state and federal governments have increased their attention toward recycling efforts – for instance, the national Recycling Modernisation Fund was created to invest over $1 billion in recycling infrastructure, whilst contributing to the circular economy through continued use of decommissioned site components as new project materials.
However, despite the initial mass-investment in battery recycling technology, the current viability of such practices remains under threat from cheap and efficient battery cells that have flooded the market, relegating the reuse of old cells to a secondary concern.18
Ocean energy infrastructure
The Offshore Electricity Infrastructure Act 2021 (OEI Act) establishes a regulatory framework for the construction, installation, operation, and decommissioning of offshore electricity infrastructure, inclusive of both renewable and non-renewable energy projects. Under the OEI Act, a developer must prepare a management plan for approval by the offshore infrastructure regulator.
The management plan is a legally enforceable document that, amongst other things, sets out a proposed decommissioning plan when the project reaches its end-of-life phase. The developer must provide financial securities to the Commonwealth which covers the costs associated with decommissioning infrastructure, removing property and remediating the licensed area. Failure to provide the required security amount is an offence under the OEI Act.19
Offshore energy regulation illustrates the difficulty of onshore decommissioning processes as each state government has implemented a different standard procedure for a project’s cessation, whereas offshore energy projects are regulated by a single OEI Act. Greater harmonisation of these regimes may be beneficial to promote an efficient decommissioning process essential for a circular economy.
Complimentary to the OEI Act is Australia’s Offshore Resources Decommissioning Roadmap, released in December 2024, which commits to developing a regulatory directorate to govern the decommissioning of offshore energy projects. This directorate is created in recognition of how expensive and laborious the current process of offshore decommissioning is, seeking to create a more streamlined procedure whilst minimising the marine impacts of a project.
Looking to 2025 and beyond
The increasing number of new energy infrastructure correlates with an increase in ‘orphaned projects’ that could burden taxpayers with the cost of decommissioning private developments. In 2025 and beyond it is likely that even more stringent and specific regulatory or legislative guidance will be promulgated, leading to an expansion of the Australian decommissioning and recycling industry.
International regulations may provide guidance as to how Australia can progress further – such as sharing financial responsibilities for project decommissioning as a condition of buying into or developing a project in circumstances of multiple parties, as is standard, but not compulsory, in the UK.20 Moreover, the principles of a circular economy, as a growing national and international trend, will only contribute more to the need for clear regulation of renewable waste management and disposal.
The NSW Guidelines provide an insight into the future of decommissioning regulation, with a focus on standardising the decommissioning of projects across the Australian energy industry. For example, requiring financial assurances at the planning stage that consider, and ultimately fund, a project’s disassembly.21
Whilst this is legislatively enshrined when considering offshore energy projects, or traditional fossil fuel energy developments, it is not yet a widespread requirement for renewable energy companies to address decommissioning at an initial planning stage – this may be an area for regulatory intervention within the coming years.
Ultimately, it is expected that in 2025 and beyond, government and industry stakeholders will increasingly regulate the process of decommissioning renewable energy projects and begin to standardise such processes across the energy industry.
The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.
1Clean Energy Council, ‘Bridging the Gap to 82% Renewable Energy by 2030’, August 2023,<https://assets.cleanenergycouncil.org.au/documents/Bridging-the-gap-to-82-per-cent-renewables-by-2030_Final_August-2023.pdf>
2AEIC, ‘Considerations for Landholders before entering into Commercial Agreements – updated’, January 2023, < https://www.aeic.gov.au/publications/considerations-landholders-entering-commercial-agreements>
3Italian Parliament, ‘Legislative Decree No. 49 of 14 March 2014’, March 2014, <https://www.governo.it/sites/governo.it/files/75158-9343.pdf>’; Eva Vicec, Kate Swain and Lynn Teo, ‘Unravelling decommissioning liabilities and security obligations for renewable energy infrastructure assets’, Lexology (Article, 7 May 2024) <https://www.lexology.com/library/detail.aspx?g=0d509a7e-ab9c-49a7-a0fb-b3ef7aab08fd>.
4International Energy Agency, ‘Legislative Decree No. 49 of 2014’, October 2024, <https://www.iea.org/policies/25032-legislative-decree-no-49-of-2014>
5Ibid.
6Planning NSW (n 3).
7Ibid.
8Ibid.
9Queensland Government, ‘Planning guideline: State code 23: Wind farm development’, February 2025. <https://www.planning.qld.gov.au/__data/assets/pdf_file/0024/98106/planning-guideline-state-code-23-wind-farm-development.pdf>
10Ibid.
11Ibid.
12Ibid.
13Ibid.
14Energy Networks Australia, ‘Charged Up: New guideline to energise distribution battery storage’, October 2024, <https://www.energynetworks.com.au/news/energy-insider/2024-energy-insider/charged-up-new-guideline-to-energise-distribution-battery-storage/>
15Planning NSW (n 3).
16Bluewater Battery Logistics, ‘Battery Energy Storage System (BESS) Decommissioning’, January 2025, <http://batterydesign.net/battery-energy-storage-system-bess-decommissioning/#:~:text=De-energize%3A%20You%20must%20de,solar%20panels%2C%20and%20UPS%20systems.>
17International Cadmium Association, ‘Collection and Recycling of Nickel-Cadmium (NiCd) Batteries’, January 2021, < https://www.cadmium.org/recycling/>
18Clean Energy Council (n 1).
19Ibid (section 118).
20CMS, ‘OEUK Decommissioning Security Agreements – the Proposed Plan’, June 2023, <https://cms-lawnow.com/en/ealerts/2023/06/oeuk-decommissioning-security-agreements-the-proposed-plan>
21Planning NSW (n 3).
