'We are beyond elated': community celebrates the demise of wind farm

Origin Energy has abandoned plans for its 870-megawatt Skye Ridge Wind Farm near Walcha, part of the New England Renewable Energy Zone (REZ).

The energy company, which owns Eraring power station, announced the decision to exit the project after facing a 50 per cent increase in wind farm construction costs since 2020.

"Origin has decided to exit the Skye Ridge Wind Farm development, effective immediately, and will be ceasing all related development activities," the company said.

"This is a commercial decision. The cost of building new wind generation has increased substantially and is roughly 50 per cent higher than it was in 2020 and this has changed the relative economics of progressing two wind projects in the same region at the same time."

Its exit comes just more than two years after it bought the project from renewable energy developer Walcha Energy.

Origin's decision to walk away followed a similar decision by Squadron Energy in July to shelve its Boorolong Wind Farm, a 426 megawatt project with up to 71 turbines northwest of Armidale.

In that instance, Squadron cited a review of its development pipeline.

Both projects had met with significant community opposition.

"We were going to be looking at 11 of those turbines directly in front of our house, and hundreds beyond that within the valley that we can see," Walcha farmer Kimmie Cameron told The Land.

"We are beyond elated this battle looks to be over. The relief is palpable."

Origin will instead shift its development resources towards its Northern Tablelands wind farm project located further north, near Armidale.

"Origin remains committed to the New England Renewable Energy Zone (REZ)," an Origin spokesman said.

"We will keep progressing our Northern Tablelands wind development project, and continue our community investment program."

The Skye Ridge Wind Farm, initially named the Ruby Hills Wind Farm, was mapped for 10km west of Walcha, at the southern end of the New England REZ.

The New England REZ is one of five declared areas for new wind and solar farms in NSW. It will support up to 2.4 gigawatts of power when its first stage is completed in 2032.

The REZ's legality is the subject of a Supreme Court appeal.

Landholders argue the former Coalition state government failed to consider a mandatory report on electricity costs before declaring the zone.

Under the Electricity Infrastructure Investment Act, the NSW Energy Minister must consider the potential impact of a REZ on electricity costs for NSW customers before declaring a zone.

According to a court affidavit, a landholder who sought a copy of the report via a Government Information Public Access (GIPA) request was advised that a report "was not created for the New England Renewable Energy Zone. Therefore, no records regarding this report are held by DCCEEW."