Govt inquiry into undergrounding of controversial power lines welcomed by farmers

It follows widespread resistance from landholders in that state who have opposed the roll-out of above ground infrastructure associated with the construction of that state's five renewable energy zones.

Energy Minister Penny Sharpe said the Government was aware of concerns being raised regarding the environmental, agricultural, community and other effects of the HumeLink project and similar concerns regarding other transmission projects.

"The Minns Labor Government is committed to delivering the renewable energy transition that NSW deserves, in a way which is cost effective and environmentally responsible," she said.

"We are also committed to ensuring local communities are engaged at every stage of the transition."

"This inquiry is an opportunity for everyone to have their say and to understand the issues that need to be weighed up when delivering this infrastructure."

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With three coal-fired power stations due to close in the next decade and large parts of the Renewable Energy Zone roll-out already behind schedule, it is unclear what impact the inquiry will have on construction timelines.

The committee's terms of reference include the costs and benefits of undergrounding, existing case studies and current projects regarding similar undergrounding of transmission lines in both domestic and international contexts, the impact on delivery timeframes of undergrounding and the environmental impacts of undergrounding.

The committee is due to report its findings in August.

NSW Farmers says the inquiry was a win for common sense and community safety.

Too often landholders were being ignored by the big developers, NSW Farmers energy transition working group chair Reg Kidd said.

"We support a robust inquiry, because it will find that there are places where undergrounding wires is a win-win for production and community amenity that has not been addressed to date," Mr Kidd said.

"Until now undergrounding has been ignored or dismissed as too expensive, not because of a cost/benefit analysis, but rather through the lack of will to fully investigate the impacts of huge infrastructure on rural communities."

He said a Wollongong University study provided strong evidence the consequences of fires caused by transmission were worse than fires from other causes, and that fires caused by electrical faults were more prevalent and burned larger areas during elevated fire danger conditions.

"Underground power lines might cost more now, but we would argue that if they save lives and improve firefighting efforts then that is money well spent."

The Australian Energy Mark Operator has repeatedly told upset communities in Victoria the cost of undergrounding is much greater compared with overhead lines and would add to the time construction would take.

"A recent study commissioned for Transgrid's HumeLink project noted that undergrounding of HumeLink would triple the project cost and add a further five years to the construction timeline," AEMO said.

Farming above an underground power line is restricted as well.

"While undergrounding all of VNI West is not a realistic option, given the cost and timeframe implications, short sections of undergrounding might be considered in exceptional circumstances as part of the ultimate route design," AEMO has told communities.