Brief Comparative Analysis of Community Benefits and Costs of Four Narrabri Shire Projects; Narrabri Community Battery

This brief comparison examines the community benefits and costs associated with four projects in the Narrabri Shire comparing and contrasting these with the Narrabri Community Battery Trial Project which is currently under scrutiny by the community. This hopefully highlights which projects deliver lasting local value to our community.

Projects:

• NRMA EV Charging Station

• Federation Farm

• Narrabri Underground Coal Mine

• Narrabri Community Battery Trial Project (comparison project)

🚗 NRMA EV Charging Station – Good for Drivers, Limited for Community

These charging stations were funded 50% by NRMA and 50% by the NSW Government. It was a $6 million program that delivered 25 new charging locations, including Narrabri, in 2023.

These charging stations have no formal community benefits program attached. Council receives a nominal rent of $1 per year from NRMA, with no ongoing costs to Council. The service is provided at or above market electricity rates, paid directly to NRMA, despite the initial public funding.

There is an indirect benefit to Narrabri, as having people stop to charge their vehicles has been shown to boost local food and beverage expenditure.

🌾 Federation Farm – A Quiet Local Hero

Narrabri Shire Council owns the land for this valued community initiative and allows the Trust to oversee its operations. The Council continues to fund annual maintenance and any capital expenditure.

The Farm provides a vital service by managing sewage waste. Additionally, it offers educational benefits by supporting young people’s learning in agriculture. Profits generated from the Farm are returned to local schools, further strengthening its community value.

⛏️ Narrabri Underground Coal Mine – Big Profits, Tiny Community Return

Each mine in NSW is required by the State Government to enter into a Voluntary Planning Agreement (VPA) when seeking development approval. The VPA for the Narrabri Underground Stage 3 expansion is scheduled for Council discussion on Wednesday, 16 April.

The proposed VPA would provide:

• $1.3 million in the first 12 months after the project begins

• $1.3 million in the second 12 months after the project begins

For context, Whitehaven Coal’s total profit in FY23 was approximately $40 billion. The Narrabri Underground coal mine contributes an estimated 21% to 24% of the company’s coal production annually.

Assuming a conservative 20% contribution to company profits, the Narrabri mine generated around $9.6 billion of profits in FY23. Against this figure, the proposed annual community contribution of $1.3 million amounts to just 0.013% of profits—and only for two years.

While the company also spends several hundred thousand dollars per year on sponsorships, this VPA applies for only two of the mine’s 15-year life span. When averaged across the full lifespan, the community benefit becomes statistically negligible.

🔋 Narrabri Community Battery Trial – Locally Run, Community Focused

This project is fully funded by the Federal Government. The battery will lease designated car parking spaces from Council for a nominal $1 per year, with no ongoing costs to Council.

Geni.Energy is a not-for-profit company regulated by ASIC and has been operating since 2020. Our mission is to maximise local benefits from renewable energy. As such, we are legally obligated to reinvest any profits from the battery into projects aligned with this mission. All profits will be directed to local community renewable energy initiatives.

A Community Advisory Group—formed through a public expression of interest process—has been established to guide how these funds are allocated.

As with other similar projects across Australia, the electricity market is still evolving and profit forecasts remain uncertain. For this reason, the project has been designated a "Trial". Part of our role is to document key learnings and share them with other communities across the country, as required by our funding agreement.

We are regularly contacted by other towns and regions seeking advice on how to establish their own community battery initiatives.

Table outlining the comparative costs and benefits of projects