Communities hosting renewables must meet high bar for Capacity Investment Scheme.
Recognising the significant challenge of obtaining social approval for the transition to clean energy, the focus is now shifting towards the practicalities of earning this approval. A crucial aspect lies in the framework established by the government to guide the renewable energy industry in constructing new generation and storage facilities.
The federal Capacity Investment Scheme (CIS) is poised to introduce an impressive 23 GW of fresh renewable energy generation and 9 GW of storage in various regions by 2030. This initiative could result in the development of approximately 40 additional wind and solar farms alongside a dozen battery projects.
This presents a unique opportunity to establish high standards for community outcomes in all areas hosting these projects. The emphasis should be on promoting and rewarding projects that excel in community engagement, environmental planning, and local content outcomes.
Government funding should be exclusively allocated to projects that strive for excellence in renewable energy development practices. When host communities are assured that a project meets these rigorous standards, it significantly enhances community support for the initiative.
Empowering Communities for Sustainable Energy
RE-Alliance and the Community Power Agency have been instrumental in uniting communities, industry stakeholders, and government bodies for over a decade to deliver tangible benefits to regions hosting energy infrastructure. Both organisations, led by individuals residing in rural communities at the heart of the renewable energy revolution, understand the importance of prioritising local community needs to drive positive change.
The Australian Energy Infrastructure Commissioner underscored the necessity of community involvement and effective engagement for the success of the energy transition. The recent consultation on expanding the CIS presents a prime opportunity to incorporate recommendations from the Commissioner’s review, emphasising the critical role of social performance in every project.
Enhancing Social Criteria in Energy Projects
To ensure the success of the CIS and the broader energy transition, it is imperative to:
– Strengthen the consideration of social factors in the CIS tender design.
– Implement robust social assessment processes with weighted criteria favouring projects demonstrating exceptional social practices.
– Emphasise ongoing evaluation to ensure projects deliver on their social commitments.
– Integrate best practices in community engagement, benefit sharing, and local procurement to build community trust.
By prioritising social criteria in the CIS, governments can create a supportive environment for achieving ambitious renewable energy targets. Improved social practices not only enhance community support but also lead to cost savings for industry players.
Efficient engagement and benefit-sharing practices have been shown to reduce generation costs by $5 per MWh through streamlined planning processes, fewer delays, and decreased compliance requirements.
While the CIS evaluates projects approved across various state jurisdictions, efforts are underway to establish a common threshold for projects to strive towards, irrespective of the regulatory framework they navigate.
Empowering Communities for Renewable Energy Transition
In addition to enhancing the social criteria within the CIS, governments can support communities by establishing Local Energy Hubs nationwide. These hubs serve as vital resources to educate and involve communities in the renewable energy shift, fostering collaboration between developers and local residents.
Furthermore, a strong federal government role in communicating the implications of the energy transition to the public, coupled with the establishment of a dedicated research centre within CSIRO, can address information needs, combat misinformation, and empower regional communities.
For further details and specific recommendations, refer to the full submission to the government’s expanded CIS consultation by Andrew Bray, National Director of RE-Alliance, and Jarra Hicks, Director of Community Power Agency.
