AEMC sets new “rules of engagement” for community consultation on transmission projects

The Australian Energy Market Commission has flagged a series of changes to rules governing community consultation for transmission projects, as the push to fast-track major grid upgrades collides with growing opposition from the regions expected to host them.

The AEMC says the draft requirements would see local communities consulted sooner about major transmission projects in their area, with continued engagement throughout the entire process for securing approvals on transmission projects, including the controversial regulatory investment test or RIT-T phase.

AEMC chair Anna Collyer says the draft rules, published on Thursday, aim to boost transparency and reduce uncertainty, by stipulating when transmission businesses are required to engage, who they must engage with and how it needs to occur.

“With more than 10,000 kilometres of transmission lines to be built to support the national electricity market, these ‘rules for engagement’ are an important step in improving the community engagement process on major projects,” Collyer says.

“‘Social licence’ is a term that is used a lot when we talk about infrastructure delivery, but behind the term are individuals and communities who deserve timely access to transparent information and clarity about their rights.”

Under the new conditions, transmission businesses would be required to engage with “stakeholders who are reasonably expected to be affected” by development of major projects including local landowners, local councils, local community members and traditional owners.

Further, the stakeholders’ role in the engagement process must be clearly explained to them, including how their input will be taken into account.

Collyer says the draft determination takes in recommendations from the AEMC’s Transmission Planning and Investment Review completed early this year and follows a rule change request from federal energy minister Chris Bowen.

The proposed rule changes come as two major public protests are being organised in opposition to major transmission upgrades, including one in objection to the controversial VNI West project in Victoria.

The “Stop The Towers Tractor Rally” is being organised by one of VNI West’s most vocal opponents, the Moorabool and Central Highlands Power Alliance, which is also challenging VNI West via a dispute lodged with the Australian Energy Regulator.

Among other grounds, the dispute argues that the project’s developers, AEMO Victoria Planning and Transgrid, did not comply with the rules when identifying a preferred route for the transmission line.

Earlier this week, the AER revealed it would need another 60 days to decide on the dispute, “due to the complexity of the issues” raised in the eight-page notice of dispute from MCHPA.

“Getting the right frameworks in place means conversations between communities and transmission businesses should happen sooner, so that concerns can be identified and addressed by networks earlier in the process,” Collyer says.

“This work has been informed by multiple rounds of feedback, twice through the Transmission Planning Investment Review, which explored social licence in relation to transmission.

“Stakeholders will now have another opportunity to provide feedback for consideration in response to these draft rules.”

The proposed rule changes have been welcomed by the Australian Energy Infrastructure Commissioner Andrew Dyer, whose job description has grown from dispute resolution for wind farm developments to encompass solar, batteries and – increasingly – transmission projects.

“The draft determination provides timely guidance and sets out minimum expectations of the transmission businesses and project developers going forward,” Dyer said.

“These expectations will be a key consideration for the community engagement review, launched recently by Minister Bowen, particularly as we examine industry’s ability to deliver and manage proper and effective stakeholder engagement – and identify critical areas for improvement”.

The AEMC will hold a forum later this month to provide stakeholders with an opportunity to ask questions and give feedback on the proposed rule change.