The inquiry found that the planning approval and environmental assessment process for renewable energy projects in Victoria, which was described as “a maze”, is complex and slow in comparison to other states.

It was calculated that it took between 8.5 and 51 months for projects to be approved in Victoria, compared to seven months in New South Wales, and five to six months in South Australia.

The inquiry also found that the current process for wind farm approval in the state is outdated and unnecessarily complex. Unlike other Victorian renewable energy projects, which receive approval from the Victorian Department of Planning and Community Development via a four-stage process, Victorian wind projects apply through one of two channels depending on their capacity. Victorian wind farms with a capacity of less than 30 MW currently gain approval through local council, while projects over 30 MW seek approval via the Victorian Minister for Planning.

A major difference between the two channels is a stipulation within local council that, if a council has not made a decision within 60 days, the matter can be taken to the Victorian Civil and Administrative Tribunal (VCAT). Councils in southwest Victoria say that this has led some wind farm developers to submit applications for wind farms of 29.9 MW capacity in order to reserve the possibility to appeal to VCAT.

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Some local councils have also expressed concern that they do not currently have the capacity, expertise and resources to continue to act as the responsible authority for wind farms, which account for 33.7 per cent of Victoria’s renewable energy resources.

Additionally, the inquiry found that it currently takes between 4.5 and 31 months for the Victorian Minister for Planning to approve wind farms over 30 MW capacity. This has led to suggestions from wind farm developers, including Pacific Hydro, that statutory time constraints be imposed upon the Minister for Planning.

The Legislative Assembly has until 25 August 2010 to respond to the inquiry report.