Origin Energy has pulled out of the Skye Ridge Wind Farm near Walcha, effective immediately, blaming the soaring cost of building new wind generation.
The company says it will now focus its efforts in the New England Renewable Energy Zone (REZ) on its Northern Tablelands Wind Farm, north-west of Armidale.
“Origin will exit the Skye Ridge Wind Farm development project effective immediately, to concentrate development effort in the New England Renewable Energy Zone (REZ) on the Northern Tablelands Wind Farm,” an Origin spokesperson said.
“The decision reflects the significant increase in the cost of building new wind generation, which reduces the case for progressing two projects in the same region in parallel.”
Origin acquired the Skye Ridge project, about 10km west of Walcha, in February 2024. The company described it as having a maximum output of up to 870MW, and had installed wind monitoring masts in October 2024 while it completed technical studies for a scoping report.
“Origin will direct its capital and development resources to the Northern Tablelands Wind Farm development, which has the strongest prospect of timely delivery,” the spokesperson said.
The move is not unexpected.
As well as rising construction costs making some wind projects harder to justify, the Northern Tablelands project at Boorolong sits next door to the Boorolong Wind Farm, which Squadron Energy dropped from its plans in July.
Neither the 426MW Boorolong project, planned for up to 71 turbines about 15km north-west of Armidale, nor the Skye Ridge project, had reached the environmental impact statement stage of the planning process. It is normal and expected for around half of these projects to be withdrawn prior to the EIS stage.
Like Origin’s decision, and a wider trend across the industry, Squadron was rationalising its portfolio to the most viable projects. Squadron said at the time it had made the decision “following a review of our development pipeline”, and would prioritise its more advanced projects, “backing the projects with the strongest technical, commercial and community foundations.”
Squadron, who operate the Sapphire Wind Farm near Inverell, and Origin, have repeatedly stated they remain committed to the New England REZ and renewable power generation generally.
“Origin remains committed to the New England REZ,” the spokesperson said.
“We will keep progressing our Northern Tablelands wind development project and continue our community investment program.”
Origin owns the Warrane property that the Northern Tablelands project sits on outright. It bought the 7,586-hectare property in 2023 for $31 million and leases it to pastoral operator Palgrove so farming can continue alongside the project.
Owning the land outright is an increasing trend among renewables developers, as it reduces the risk of landholders changing their minds. That risk is understandably high in Walcha, where a small number of anti-renewables advocates routinely bully and intimidate those who are pro-REZ or work for the renewable power companies. That noisy pocket of resistance is not found elsewhere in the zone.
EnergyCo has followed a similar path, buying whole properties to make way for the REZ, including the sites for its hubs and worker camps.
Assuming Origin doesn’t extend to take over the old Squadron Boorolong project, the Northern Tablelands Wind Farm would have up to 63 wind turbines, a battery energy storage system, and around 608 megawatts of generating capacity.
Consultation is now underway to help prepare the social impact assessment for the Northern Tablelands project, including a survey currently open for interested locals to have their say.
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