Proposed changes to improve community engagement practices within Australia’s energy sector

9

February

2024

1

min read

Proposed changes to improve community engagement practices within Australia’s energy sector

On 2 February 2024, Minister for Climate Change and Energy Chris Bowen MP endorsed all nine recommendations of the Energy Sector Community Engagement Review, which was initiated in response to growing regional resistance to renewable project developments and ongoing project delays.

The Australian Energy Infrastructure Commissioner’s Community Engagement Review was established in June 2023 to advise how to improve community engagement with those directly affected by renewable energy infrastructure developments.

Led by Andrew Dyer, the Australian Energy Infrastructure Commissioner, the Review’s nine recommendations are:

  1. Introduce a voluntary rating scheme for developers
  2. Align and enhance State and Federal planning programs
  3. Streamline land use planning and project siting
  4. Accelerate environmental and planning approvals
  5. Establish ombudsman roles in states and territories for complaint resolution
  6. Launch a detailed communications program to educate communities on energy transition
  7. Overhaul governance of major national transition projects
  8. Drive economic opportunities for regional and First Nations enterprises
  9. Promote developers with robust community engagement in project bids

The Government has accepted all of the independent Review's nine recommendations in principle, saying they will help smooth Australia’s energy transformation and ensure greater project participation and equity.

York Park Group’s Analysis

Significant changes are now anticipated across the energy sector, particularly in the design and delivery of renewable projects.

Over the past five years, there has been a concerted effort by the Australian Energy Regulator and other regulatory and government bodies to require more co-designed community approaches to energy projects (and to enforce them accordingly). However, the rapid pace and scale of projects needed for the energy transition means there remains an ongoing risk that ‘box-ticking’ community engagement will persist.

The Dyer Review recommendations could lead to a more stringent consultation framework implemented across the country, with harsher penalties for poor practices enforced. However, several recommendations suggest adding additional processes for complaints handling may lead regulators, government departments and organisations to question their efficacy and usefulness.

A major contention of the Dyer Review and its broader implementation is the absence of trust building. Instead, the review focused on adding extra processes to achieve and improve desired outcomes. As such, the Federal Government may continue to encounter barriers to project delivery.

In the context of a Federal election within the next 12 months, these recommended changes could impact the broader dynamics that led to the Review being initiated to begin with. With regional sentiment towards the energy transition trending downward, any missteps in how renewable development consultations are undertaken could affect public attitudes overall which could have an impact at the ballot box.