Renewable Energy Industry Faces Scrutiny Over Community Benefits

Strategic Insights -

Shadow energy and emissions reduction minister Dan Tehan believes the time has come for regulations to ensure communities are not left empty-handed after hosting large-scale renewable energy projects. "There needs to be regulations, it is the only way that you're gonna get the balance right," he said. The Coalition is urging the federal government to adopt a policy similar to Queensland's new community benefit scheme, which guarantees long-lasting legacy and community benefits for communities hosting wind and solar farm developments. The scheme seeks to alleviate social license hurdles and ensure that communities benefit from the use of rural land for industrial renewable projects.

Key Takeaways:

  • The renewable energy industry has plateaued in recent years due to complicated and lengthy environmental and planning approval processes, spiking costs, and local opposition.
  • Shadow energy and emissions reduction minister Dan Tehan believes that regulations are needed to ensure communities are not left empty-handed after hosting large-scale renewable energy projects.
  • The Coalition is urging the federal government to adopt a policy similar to Queensland's new community benefit scheme, which guarantees long-lasting legacy and community benefits for communities hosting wind and solar farm developments.
  • The scheme seeks to alleviate social license hurdles and ensure that communities benefit from the use of rural land for industrial renewable projects, such as improved neighbor benefits, reduced local energy costs, and shared investment in roads, healthcare, and education.
  • Queensland's new community benefit scheme has been successful in producing positive results, with stakeholders working to implement Renewable Energy Transformation Agreements and the Australian Energy Infrastructure Commissioner Tony Mahar advocating for a more collaborative, consistent, and coordinated industry-wide response to community engagement issues.
  • The federal government's recent push for faster approval of renewable projects and the adoption of a central second-term priority to kick-start Australia's productivity through a range of measures, including faster approval of renewable projects, has raised concerns about social license hurdles.
  • New Queensland laws, the Planning (Social Impact and Community Benefit) and Other Legislation Amendment Bill 2025, require social impact assessments and agreements between proponents and local governments, and give local councils a seat at the planning table to ensure long-lasting legacy and community benefits are locked in for new projects at the time of approval.

Statistics:

  • The renewable energy industry has plateaued in recent years, with projects scrapped or stalled due to complicated and lengthy environmental and planning approval processes, spiking costs, and local opposition.
  • There is no requirement for renewable developers to use local content, upgrade roads, provide cheaper power, or invest in community projects, leading to concerns about social license hurdles.
  • Queensland's new community benefit scheme has seen positive results, with stakeholders working to implement Renewable Energy Transformation Agreements and alleviate social license hurdles.
  • The Australian Energy Infrastructure Commissioner Tony Mahar has advocated for a more collaborative, consistent, and coordinated industry-wide response to community engagement issues, with a focus on bridging the community acceptance gap.
  • The federal government's recent push for faster approval of renewable projects has raised concerns about social license hurdles, with the adoption of a central second-term priority to kick-start Australia's productivity through a range of measures, including faster approval of renewable projects.

Sources:

  • Jason Gregory, "Legal obligations could stop locals from being left empty-handed", Australian Country Mayor
  • Dan Tehan, Shadow energy and emissions reduction minister, ACM interview
  • Anthony Albanese, Prime Minister, June 12, 2023
  • Chris Bowen, Climate Change and Energy Minister, energy industry conference
  • Tony Mahar, Australian Energy Infrastructure Commissioner, wind energy forum
  • Queensland Deputy Premier Jarrod Bleijie, Planning (Social Impact and Community Benefit) and Other Legislation Amendment Bill 2025 announcement