Article by Matthew Denholm, courtesy of The Australian.
24.09.2025
Regions hosting renewable-energy projects would receive – and control – pooled developer and government funds for local infrastructure and services, under a “radical” plan to secure a “social licence” for the rollout.
The proposed system, designed by the Regional Australia Institute, would ensure all communities nationally received a minimum benefit from renewables in their regions.
Under the “Regional Energy and Legacy Deal” – or “REAL Deal” – to be unveiled on Thursday, developers would pay a “social benefit” that would be pooled across a region, with top-up funds from all tiers of government. These “legacy funds” would be controlled by local communities and distributed according to their wishes.
The aim is to help address two major trends: a growing backlash against the renewables rollout and regional service and infrastructure shortcomings exacerbated by the migration of treechangers from our cities.
“This about ensuring that the energy transition provides and builds a legacy for regional communities,” institute chief executive Liz Ritchie told The Australian. “This transition can’t happen at any cost to our regional communities. It has to happen with them – and for them.
“If we’re using regional Australia to house the energy transition, there needs to be a dividend.
“We have to have a new approach, a new framework, so that regional communities can see themselves at the top of the tree, making those decisions.”
By combining “social benefit” payments from multiple developers in a region, with existing government funds, a large future fund-style pool of cash could help bankroll “once in a lifetime” projects sorely needed in regions.
Neither the institute’s model nor the accompanying report, Towards Net Zero: Building a Legacy, mentions a dollar figure that renewables developers would contribute.
However, Ms Ritchie said both developers and locals would benefit from a framework including minimum amounts to guide genuine negotiations and provide certainty to investors.
She pointed to the proposed Fair Energy Deal for Scotland, which stipulates a “floor” price of £7300 ($14,905) per MW of installed energy a year, and “ramp” payments of up to 2.5 per cent of project revenue. Such payments could be “transformative” for regional communities and far superior to the current “very ad hoc” approach in Australia, she said.
The plan, which the institute suggests be piloted before being rolled out nationally, would address failings in community engagement that the report warns threaten to undermine support for renewables.
There are 54 renewable energy projects committed or under construction and a further 161 flagged, nationally.
Ms Ritchie said some were not achieving a social licence and elevating communities as “equal partners” would help address this.
“We want governments to rethink how they are approaching the renewable energy transition, and the industry,” she said.
NSW was currently the only jurisdiction with mandated community benefits payments, requiring $1050 per MW capacity a year for wind, and $850 per MW capacity a year for solar.
However, communities still had to apply to access those funds, with decisions made by government, Ms Ritchie said.
The institute’s report recommends communities are genuinely consulted early in the development of renewable projects and Ms Ritchie said this should include site selection.
Ultimately, communities that remained unconvinced should have the right to say no.
“If we’re really authentic to the model where they have decision-making, there probably is a place where they have the opportunity to say ‘Actually, that just doesn’t work’,” she said.
“While there remains some scepticism towards renewable development in our regions, our research finds that early engagement with communities delivers positive outcomes.
“Industry and government must respect our regional communities and bring them on this transition journey. The best way to do that is to ensure our communities have adequate investment, in the form of infrastructure, essential services, homes and skilled personnel.”
Regional Development Minister Kristy McBain said the government was committed to improving the “the way developers engage with regional communities when developing clean energy infrastructure”.
“It’s really important that there is a social licence for these projects as the transition to renewables continues,” she said.
“The Albanese Government is committed to ensuring regional communities are empowered to participate in the energy transition and experience its benefits.”
