NSW raises the bar for IPC referral of major energy projects, and effectively removes it for BESS

The NSW Government has doubled the objection threshold for electricity generating works to be referred to the Independent Planning Commission (IPC) and removed objection-based IPC referral for battery energy storage systems altogether.  These changes seek to materially reduce approval risk for proponents across the energy sector.

Snapshot

The State Environmental Planning Policy (Planning Systems) Amendment (Independent Planning Commission) 2026 (NSW) (IPC Amendment) changes the IPC referral triggers so that:

• the objection threshold trigger for electricity generating works, and mining and petroleum development is raised from 50 to 100 qualifying objections;
• the council objection trigger is not applied for those same project classes;
• battery energy storage systems (BESS) are expressly excluded from all objection-based IPC referral pathways (but will remain subject to the reportable political donation trigger); and
• a new NSW connection requirement means only submissions from persons who reside in, own land in, or have a place of business in NSW will count towards the objection thresholds. 
• Some changes in the IPC Amendment are effective immediately, while others will come into force later this year. 

Two amendments, two days

Until now, the IPC was the consent authority for State significant development (SSD) projects if at least one of the following applied: 

• the local council made an objection submission;
• at least 50 objection submissions (excluding the local council) had been made; or
• the applicant had made a reportable political donation. 

The IPC Amendment is the second change to IPC referral triggers in as many days, with changes first being introduced in respect of SSD data centres, and then being expanded to apply to other SSD projects.

On 17 August 2026, the NSW Government published the State Environmental Planning Policy (Planning Systems) Amendment (Data Centres) 2026 (Data Centres Amendment). That amendment created a two-tier IPC referral framework with: 

• a 100 objection threshold for SSD data centres; and
• a 50 objection threshold for all other development. 

The Data Centres Amendment also did away with the Council objection trigger for data centres. 

The IPC Amendment, published the following day, expanded the newly-created 100-objection threshold and did away with the council objection trigger for a broader range of projects including major energy generation developments. The IPC Amendment did away with both the objection threshold trigger and the local council objection trigger for BESS, meaning these developments can only be referred where there is a reportable political donation. 

The IPC Amendment reflects a number of the findings and recommendations in our November 2025 NSW Planning Approvals for Clean Energy Projects Pulse Report, published in partnership with the Clean Energy Investor Group. That report – based on a survey of 67 representatives from nearly 40 organisations involved in delivering or financing major clean energy projects – identified raising the IPC objection threshold, limiting the council objection trigger, and requiring a geographic nexus for qualifying submissions as the top industry-backed reforms to reduce planning approval delays. The changes now enacted by the NSW Government directly address each of those recommendations.

The key changes introduced by the IPC Amendment are discussed below.

BESS can now only be referred for a reportable political donation

BESS projects will no longer be referred to the IPC on the basis of the number of objections received or the local council objecting. The only remaining IPC referral pathway for BESS is where a reportable political donation has been disclosed, which is not affected by the amendments.

For the purpose of the IPC Amendment, a BESS is defined to mean development for the purposes of electricity generating works that: (a) is used for stand-alone electricity storage; (b) comprises one or more electrochemical battery units; and (c) does not make or generate electricity.

A new 100-submission threshold for electricity generating works

Wind farms, solar farms, gas-fired power stations and co-generation facilities will now only be referred to the IPC on the basis of public objections if at least 100 qualifying submissions are received.

The general 50-objection threshold continues to apply to all other SSD.

Why it matters: Even where a project had broad community support, projects would regularly generate well-above the 50-objection threshold. Generating objections has also become easier with generative artificial intelligence. IPC referral introduces additional procedural steps, extends assessment timeframes, and can create significant uncertainty for proponents and their financiers. Doubling the threshold to 100 objections seeks to reduce the risk that a relatively small number of coordinated objections will escalate a project to the IPC. With that said, 100 submissions by way of objection remains an achievable number for well-organised campaigns on major energy projects. Proponents should prepare and implement a targeted and proactive community engagement strategy for their project. 

Council objection trigger disapplied for energy SSD

The IPC Amendment removes the council objection trigger for BESS, electricity generating works (including wind, solar, gas and co-generation), mining and petroleum development.

Why it matters: The council objection trigger has historically given local councils a de facto veto over the granting of consent for SSD projects. A single objection from a council, irrespective of the merits of an objection or the level of broader community support, was sufficient to have a project referred. This could give councils disproportionate leverage over project timelines and outcomes. 

NSW connection requirement (from 1 November 2026)

From 1 November 2026, only submissions made by a person who resides in NSW, owns land in NSW, or has a place of business in NSW will count towards the objection thresholds. Council submissions will also be expressly excluded from the count under both thresholds.

Why it matters: Previously, the objections which counted towards the IPC referral trigger could come from any person, irrespective of whether they were directly impacted by a project. From 1 November 2026, in order for objections to count towards the referral trigger, submitters will need to reside in NSW, own land in NSW, or have a place of business in NSW.  

Industry feedback has consistently called for a tighter geographic nexus for IPC objection triggers – for example, limiting qualifying submissions to persons within the relevant local government area or within a defined radius of the project site – which would more effectively ensure that the referral mechanism reflects the views of communities directly affected by a proposed development. 

Ministerially declared SSD: outside the IPC referral framework

The IPC Amendment inserts s 2.12(2) into the Planning Systems SEPP, confirming that s 2.7 does not apply to State significant development declared under the EP&A Act, s 4.36(3). SSD declared by Ministerial order is entirely outside the objection-based IPC referral regime – the IPC will not be designated as consent authority for such projects by reason of council objections or the number of public submissions received.

Commencement and transitional provisions

Some of the changes introduced by the IPC Amendment commence immediately, whereas others will come into effect later this year. The table below summarises the savings and transitional provisions for the changes:

What does this mean for pending applications?

For projects yet to be determined, the changes have a number of potential consequences. For example:

• An application for a wind farm that had received 60 objections before 18 August 2026 would previously have crossed the 50-submission threshold, triggering IPC determination. From 18 August 2026, those 60 objections no longer meet the new 100-submission threshold.
• Similarly, where a council had lodged an objection that previously triggered IPC referral for an electricity generating works application, the disapplication of the council objection trigger from 18 August 2026 may mean that referral no longer applies to pending applications.
• The NSW connection requirement (commencing 1 November 2026) is different: applications lodged but not finally determined before 1 November 2026 will be assessed under the pre-commencement rules, meaning all submissions (regardless of the submitter's location) will continue to count for those applications.

Proponents with applications that are not yet determined should seek specific advice on how these changes affect the consent authority designation for their project.

Key Takeaways 

• BESS projects can now only be referred to the IPC if there is a reportable political donation. 
• Wind farms, solar farms, gas-fired power stations and co-generation projects are now subject to a new 100-submission threshold for IPC referral.
• The council objection trigger remains in force for other SSD, but is disapplied for electricity generating works, BESS, mining, petroleum and data centre development – meaning council opposition will not automatically trigger IPC determination for those project classes.
• From 1 November 2026, only submissions with a genuine NSW nexus will count towards the objection thresholds. 
• SSD declared by Ministerial order is expressly outside the IPC referral framework, regardless of the number or source of objections received. 

If you would like to discuss how these reforms affect your projects or pipeline, please contact our team.