Farmers welcome “nation-leading” guidelines for wind, solar and batteries – but warn they are not binding

Greater transparency between neighbours, greater involvement of local governments, and better coordination across industry sectors are among a comprehensive set of “best practice” standards that renewable energy developers are expected to meet when working with communities in Victoria.

The Victorian Labor government has released its Community Engagement and Social Value Guidelines, setting out 43 expectations that all wind, solar and battery storage developers will need to meet if they want to connect to the grid.

The guidelines – which will come into force from July 2027 as part of the Victorian Access Regime – have sought to address ongoing points of conflict and concern raised by communities and regional stakeholders, including public liability insurance, decommissioning and non-disclosure agreements.

To this end, around half of the 43 “minimum expectations” are dedicated to setting the standards of engagement with communities surrounding the project, as well as with host landholders and neighbouring and nearby landholders.

Among the key requirements for landholders is for developers to “negotiate transparently with and between landholders” and to prevent contractual clauses – like non-disclosure agreements (NDA) – from unreasonably restricting community discussion of project details.

Developers are also expected to clarify who is responsible for paying increased or new costs associated with hosting the infrastructure – including insurance premiums, rates, levies, land taxes or duties – and specify the developer’s responsibilities around decommissioning and land remediation.

“This process should include negotiation of landholder protections and financial safeguards, including in the circumstances the developer or project owner becomes insolvent or is otherwise wound up before the end of project life,” the guidelines say.

On the community side, developers are expected to provide “timely and transparent information at the earliest opportunity” on project plans, impacts and risks, scope for negotiation, a timeline for decisions, and the role of consultation, and to coordinate engagement to reduce consultation fatigue.

Structured management of enquiries and complaints and an established process for dispute resolution are also expected.

For neighbouring landholders, the guidelines compel developers to provide “timely and transparent information at the earliest opportunity” about potential risks and impacts of the project and on what can and can’t be influenced through negotiation.

Developers should also “consult with neighbours on how agreements regarding impacts and benefits will be managed, including how agreements are developed, and where appropriate, formalised,” the guidelines say.

“For communities and landholders, these guidelines mean a stronger voice and real opportunities to influence projects that affect daily life,” says Victorian energy minister, Lily D’Amrosio.

“They mean being involved early and having access to clear, trusted information.

“For developers, the guidelines provide clarity and consistency and explain what the Victorian Government expects as a minimum.”

The Farmers for Climate Action group said this week that while the devil will be in the detail, the guidelines should mark a “major shift forward” in how developers interact with regional stakeholders.

“On the guidelines alone, Victoria now leads the nation on best-practice approaches for developers to interact with the community,” Farmers for Climate CEO Verity Morgan-Schmidt said in a statement.

“The Victorian government and renewable energy industry need to re-build trust in many regional communities around the clean energy build, and if implemented well, this goes some way toward that.”

Morgan-Schmidt says the organisation is also pleased to see the guidelines address ways to engage the broader community on benefit sharing, thus improving on what was often a “hodge-podge approach” to the design of such schemes.

But “these remain unbinding expectations and the devil remains in the detail as to how developers follow the guidelines,” Morgan-Schmidt adds.

“We also know that there is much work to be done to ensure that those responsible for implementation; including VicGrid, have the social license, ability and whole of organisation commitment to ensure the guidelines have the intended impact.”

VicGrid says that fefore the access regime comes into effect, it will be asking renewable energy projects seeking to connect to the network to ensure their engagement is consistent with the guidelines.

Readers can learn more about the Community and Engagement Social Value Guidelines here.

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 click here to subscribe to our free daily newsletter.

If you wish to support independent media, and accurate information, please consider making a one off donation or becoming a regular supporter of Renew Economy. Please click here. Your support is invaluable.