The federal government is building a big renewable energy pitch to landowners ahead of the election, rolling out two measures on Thursday to reassure them that wind, solar and battery storage project developers are being brought into line.
The long-awaited pilot for the Developer Rating Scheme has now officially launched and is calling for registrations of interest from developers who want to test and help design the program.
Already 24 developers have expressed interest including Goldwind, Copenhagen Infrastructure Partners, Ark Energy and EnergyAustralia, said a statement from energy minister Chris Bowen’s office.
The other measure announced on Thursday is a $500,000 Australian Renewable Energy Agency (ARENA) grant for software that helps inform landowners how much money they could make from a wind and solar project hosted on their property.
“The renewable transition can unlock new wealth and opportunities for farmers now, and for generations to come,” Bowen said in a statement.
“To ensure this happens equitably we want landholders to have access to the best possible data to make informed decisions about who they negotiate with, and the potential of their land.
“The Coalition spent 10 years ignoring calls to make the necessary reforms to improve how essential energy projects are rolled out in regional communities.
“The Albanese government is committed to striking the right balance between supporting the renewables rollout and farming, through genuine community engagement and long-term local benefits.”
Ratings scheme underway
The ratings scheme was one of the outcomes of a review set up in 2023 as part of a deal with Teal MPs to respond to rising community angst about renewable energy developments.
After 75 meetings with more than 700 people, and fielding more than 500 submission, the final report found that repeated poor community engagement had created “material distrust” of renewable energy and grid developers.
Developers too were – and still are – frustrated that bad behaviour by a few is tarnishing all.
Bowen said in March last year the scheme was a priority, but by November farmers were still pleading for better relationships with developers.
Key frustrations are that farmers are not consulted on how projects on their land are designed nor brought along in the planning and construction process, and non-disclosure agreements which pit neighbours against each other.
The government is looking for 10 developers from different renewable energy sectors to design and test the scheme over a four month period, with the first phase due to launch on 1 July.
It’s hoped the voluntary scheme may go some way to alleviating these tensions by giving landowners insight into who is a fair dealer.
Much will rely on just how developers are rated, however.
The industry already has one system, the Clean Energy Council’s Best Practice Charter, which Renew Economy understands is not preventing bad-faith community engagement by some signatories.
Website to show wind, solar potential
The other tool the federal government is hoping will tilt the balance a little more towards landowners is a piece of software that assesses property for its wind and solar potential.
The software is the second version of a $1.2 million platform built by RELA Australia, a company that matches landowners with developers, which it says is free to use for the former.
RELA’s revenue comes from developers as part of its land matchmaking service and negotiating leases. It also offers landowners a way to receive lease payments upfront, rather than over time.
It’s not the first or only piece of free software on the market that empowers landowners in negotiations with developers. ANU’s RE100 team developed and has released a Renewable Energy Heatmap, which also allows farmers and other property owners to assess the solar and wind potential while including many of the same elements that RELA is building into its updated version.
ARENA COO Chris Faris said they invested in the RELA version to help Australian landholders to make informed decisions about participating in the clean energy transition.
“By understanding the renewable energy potential of their land, they will be better equipped to engage and negotiate with renewable energy developers to get a better deal and a fair share of the income benefits… giving them a greater stake in the clean energy transition on their own terms,” Faris said in a statement.
One of the issues that came through the 2023 review by Australian Energy Infrastructure Commissioner Andrew Dyer was that landowners don’t always have the right information to know what constitutes a fair value for their land’s renewable potential.
The software works by comparing a landowner’s property characteristics with land already used by other projects in the National Energy Market (NEM).
It estimates the potential financial reward by evaluating factors such as the wind and solar resource at the site, grid proximity, system strength and potential marginal loss factors.
The new version adds extra layers including a new social license index and environmental conditions to provide a fuller picture of all the details that may influence a project’s viability.
- * This article has been updated to include details of the ANU RE100 Renewable Energy Heatmap project.
