The Clean Energy Council has called for the creation of a national scheme that would set a \u201csingle, legislated rate\u201d for payments made to the local governments of regional communities hosting large-scale wind, solar and battery projects.<\/p>\n
CEC chief Jackie Trad announced the proposed Renewable Resources Payment scheme at the Clean Energy Summit in Sydney on Tuesday morning, as a way to provide a permanent funding stream for communities hosting Australia\u2019s clean energy infrastructure.<\/p>\n
Under the proposal, local councils hosting the projects would receive the payments and determine how they are spent, recognising they are best placed to understand the priorities of their communities.<\/p>\n
Trad says the national scheme would replace the \u201cpatchwork of community benefit funds, grants and negotiated payments,\u201d removing confusion and rebuilding trust. \u00a0<\/p>\n
\u201cThe fundamental problem this industry has is trust. We do not have enough of it in the places where we build: regional and rural Australia,\u201d Trad told the summit in Sydney.<\/p>\n
\u201cUnder the proposal, every megawatt-hour of renewable electricity would attract a legislated payment, paid directly to the local councils hosting the infrastructure for the life of the project.\u00a0<\/p>\n
\u201cScrap the patchwork. Replace it with something simple, permanent and public, the same way coal and gas pay royalties,\u201d Trad said.<\/p>\n
The call comes as the renewable energy industry struggles to secure the social licence it needs to deliver the wind, solar and storage projects at the rate and pace needed to meet Australia\u2019s target of 82 per cent renewables by 2030 \u2013 and to replace outgoing coal.<\/p>\n
The difficulty has been particularly acute in Queensland, where the state LNP government\u2019s new planning rules require developers to complete social impact assessments (SIA) and enter into \u201cbinding\u201d community benefit agreements (CBA) with local governments before they can apply for state approval.<\/p>\n
The CEC \u2013 potentially anticipating a similar policy about-face in Victoria, if the Labor party is ousted at the state election in November \u2013 thinks a national approach to community payments could remove a lot of the heat from the often fraught consultation process, take pressure off councils and guide developers.<\/p>\n
\u201cI know how this sounds,\u201d Trad told the summit. \u201cIt is not every day an industry CEO stands at a podium and volunteers to replace the way an entire industry invests in its host communities. <\/p>\n
\u201cAnd I concede the design will take work \u2013 the rate, the thresholds, the mechanism, how existing projects transition. Reasonable people will argue over every one of those details, and they should.<\/p>\n
\u201cSo when we debate this, weigh the cost of a Renewable Resources Payment against the cost of what we have now,\u201d Trad says. <\/p>\n
\u201cEvery project that spends three extra years in contested approvals. Every project that dies in a hostile council chamber. Every town hall that fills against us because nobody in that hall can point to a single thing our industry has built for their town. <\/p>\n
\u201cDistrust is the most expensive line item in this industry, and we pay it every single day.<\/p>\n
\u201cA legislated payment is cheaper. It is easy to understand \u2013 and when you understand something, you can trust it. And it delivers what communities call for most: agency, ownership, self-determination. <\/p>\n
\u201cThe turbines on the ridge become the reason the pool got built, the main street got fixed, the childcare centre opened. When the money is visible, permanent and locally controlled, the compact starts to mend. And when the compact mends, the politics follows.\u201d<\/p>\n
RE-Alliance national director Andrew Bray says a move towards greater clarity and visibility around community payments makes good sense, but would need careful consultation and design.<\/p>\n
\u201c[A national scheme] could help build trust and give communities more confidence that they will share in the value being created when hosting renewables infrastructure,\u201d Bray told Renew Economy on Tuesday.<\/p>\n
\u201cIn fact, several states are already moving in this direction through community benefit and local government arrangements, so there is merit in exploring a more consistent national approach.\u00a0<\/p>\n
\u201cIt\u2019s important to note communities are likely to have a range of views about whether local government is always the right body to administer the funds. Like everything, scheme design will matter and genuine consultation will be key.\u201d\u00a0<\/p>\n
If you would like to join more than 29,000 others and get the latest clean energy news delivered straight to your inbox, for free, please\u00a0click here to subscribe to our free daily newsletter<\/a>.<\/p>\n
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