The Clean Energy Council has called for the creation of a national Renewable Resources Payment scheme that would provide a permanent funding stream for the regional communities hosting Australia’s clean energy infrastructure.
In a keynote address to the Australian Clean Energy Summit in Sydney, Clean Energy Council CEO Jackie Trad said Australia needed a new tenet with regional Australia, arguing the industry’s biggest challenge was no longer proving the case for renewable energy, but earning trust where projects are built.
Under the proposal, every megawatt-hour of renewable electricity would attract a legislated payment, paid directly to the local councils hosting the infrastructure for the life of the project.
Related article: Listen to farmers, not Facebook: Regional support for renewables steady at 62%
The national scheme would replace the current patchwork of community benefit funds, grants, and negotiated payments with a permanent, transparent system, built on the same principle that has long applied to Australia’s coal and gas industries.
“Scrap the patchwork. Replace it with something simple, permanent and public, the same way coal and gas pay royalties,” Trad said.
“Regional Australia is being asked to host the machinery of our energy security. The least we can do is make sure the towns that host it share squarely in the wealth it creates.”
Under the proposal, local councils hosting the projects would receive the payments and determine how they are spent, recognising they are best placed to understand the priorities of their communities.
“A mayor knows whether the town needs a pool, a childcare centre, doctor’s rooms, or a decent road. And if the money is spent badly, there is a reckoning every four years at the ballot box,” Trad said.
The Clean Energy Council said the detail of the scheme, including the rate and implementation, would be developed in consultation with stakeholders and regional communities.
Local Government NSW President Darcy Byrne welcomed the proposal, saying it recognised the fundamental need for communities hosting renewable energy projects to receive a fair share of the benefits.
“Councils want renewable energy to succeed, but host communities must see real, lasting benefits from the infrastructure in their backyards,” Mayor Byrne said.
“A national payment scheme would help build trust, strengthen local support and ensure rural and regional areas share in the value created by these projects.
“It’s not every day you see an industry proposing a royalty on itself, but this is the right call to build trust and confidence in the renewables sector.
Related article: Farmers spell out “no gas” with tractors in Queensland
“Regional councils are used to getting left behind by big agencies and utilities, so locking in a simple system of financial contributions directly paid to local government would help overcome the cynicism that they are feeling about the renewables roll out.
“Getting this right will help shape the long-term prosperity and wellbeing of communities across NSW, particularly within and around the state’s five Renewable Energy Zones.”
