Energy companies “prospecting” for potential wind and solar projects are causing “distrust, uncertainty and anxiety” in many regional communities, according to a much-anticipated report, which has called for governments to take back the reins of the stalling clean energy transition.
The review by Energy Infrastructure Commissioner Andrew Dyer comes amid growing grassroots resistance to the expansion of renewables and transmission projects and makes nine recommendations aimed at ensuring the right projects are built in the right places by the right people.
By 2030, the government wants 82 per cent of Australia’s power to come from renewable sources (up from about 32 per cent now), a policy seen as crucial to achieving mandated climate targets.
‘Mistrust’ in hordes of developers
Mr Dyer said communities will benefit greatly from the transition through direct payments to farmers, the thousands of jobs created during construction, and the millions of dollars renewable energy companies are pumping into the regions through community benefit funds.
But he said poor engagement had led to a “material distrust” of some developers and suggested planning and regulation were still catching up.
The 42-page report is based on hundreds of submissions, surveys and meetings, and gives an insight into the experiences of regional communities in the path of renewable developments.
“The potential for new transmission lines … has unleashed a plethora of wind and solar farm developers, descending on the planned routes to attempt to sign up nearby landholders with exclusive contracts over their land,” Mr Dyer noted in his report.
“As a result, there are far more potential renewable generation projects being pursued by developers than the proposed transmission lines may actually accommodate, which can unnecessarily create uncertainty, anxiety and consultation fatigue.”
In some areas, landholders had been approached by multiple developers, all seeking to gain access to their property to investigate a potential project.
Governments must produce ‘timely implementation and execution’
Mr Dyer has called on the states and territories to better plan and control who builds new generation projects, such as wind and solar, and where, and to establish independent, state-based complaints-handling processes.
He has also recommended developers be more tightly regulated and a new ratings system established to enable communities to differentiate between legitimate companies seeking to build projects on and near their land, and the “cowboys”.
“Like a boomerang that always returns if you throw it properly, this report and its recommendations now rests on timely implementation and execution,” Mr Dyer said.
Accepting all nine recommendations in principle, Mr Bowen said the report clarified the need for “proper, earlier and better engagement”.
“This revolution is very much in the nation’s interests,” Mr Bowen said.
“I want to see that it’s in the interests of regions, of landholders, of farmers and of communities right across Australia as well.”
In what could be seen as a political win for Labor, National Farmers Federation CEO Tony Mahar stood alongside Mr Bowen and Mr Dyer for the release of what he called a “compelling and great report”.
“The report confirms what has been a breathtakingly poor reflection on the intersection between agriculture and renewable energy,” Mr Mahar said.
“What we need now is to make sure the government does implement these recommendations.”
Landholders near the New South Wales town of Mudgee recently won a years-long court battle against a proposed large-scale solar farm just outside of town because of the project’s visual impact.
The Australian Energy Market Operator’s (AEMO) plan for a new network of high-voltage transmission lines is also coming under pressure with community opposition causing delays, and potential cost blowouts, to projects including the VNI West, a $3.6 billion line between Victoria and NSW.
AEMO says an extra 10,000km of transmission lines need to be built by 2050 to connect all of the wind, solar and back-up power being built to replace retiring coal-fired plants.
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