Overcoming governance challenges in renewable energy in Australia

Overcoming governance challenges in renewable energy in Australia

Energy governance in Australia is currently fragmented between Federal and State government, and across quasi-commercial energy entities. This fragmentation limits the effective delivery of renewable energy networks and projects in Australia.

Although the government has had a lot to say about renewable energy, action has been arguably slow. On the flipside, we’ve seen proactive behaviour from the private sector, especially when a viable economic case is present.

Planning wise, we’re seeing interest and activity on an individual project level, but problems aligning broader planning efforts with long-term strategic energy goals. As a result, opportunities to meet larger energy objectives are being missed.

Australia’s recent commitment to reach international carbon reduction targets by 2030 is driving us to replace fossil fuels with alternative sources of energy. Technology offers up choices for alternative energy generation, but these cannot be delivered without trade-offs, and consideration for long- and short-term impacts.

At present, we’re seeing a haphazard response from authorities, which sometimes defaults to a precautionary stance. In order to meet targets, this approach needs to shift. The urgency of climate change is already well accepted by the global community, so this shift needs to happen fast.

Protecting our ecosystems

Unchecked global warming and climate change pose significant threats to our planet, including floods, fires and other catastrophic events. The correlation between energy production and global warming is widely acknowledged, which means we urgently need to transition to renewable energy sources to mitigate the damage already done.

Fast tracking renewable energy projects is one key way we can lower greenhouse gas emissions and the impacts of climate change. This approach requires us to balance the short-term environmental impact of a renewables project with the long-term benefits.

Continued productivity improvements in renewable energy technologies will also result in cost reductions and shorter return on investment. These outcomes are likely to incentivise a transition to sustainable energy sources.

The impact on regional Australia

Renewable energy production is well-suited to regional locations due to its:

• Independence from centralised distribution networks
• Requirement for broad acre sites
• Potential for co-production with agriculture and processing.

Regional communities also often face cyclical influences, including droughts, pest issues and trade politics, while energy demand remains reliable and stable. Green energy projects benefit regional economies by promoting cleaner production, lowering emissions and access to world markets.

At present, unregulated planning for renewable energy projects is being driven by the private sector. This reliance is due largely to the government energy regulator, who seeks to let the energy market drive green energy innovation and adoption.

However, this lack of government regulation in regional areas can result in speculation and community division. As a result, we tend to see restrictive and anti-competitive behaviour, as well as high failure rates in project delivery.

How good local planning can help

Planning schemes need to be structured in a way that foster the development of green energy projects. Overly prescriptive schemes are likely to stifle projects, as it is impossible to keep pace with technical advances in green energy.

With this in mind, we need to approach green energy projects similarly to conventional power facilities and assess them based on their necessity to addressing the global climate crisis. This flexibility is critical to preventing planning schemes from imposing unnecessary controls that are unsuitable for specific sites or technologies.

Local planning can also assist the development of green energy by:

• Creating green energy ‘enablers’, such as utilities corridors and incentives for collaboration.
• Allowing the environmental regulatory regime to handle environmental issues relating to green energy, such as those associated with wind turbines.
• Incorporating developer contributions into planning processes to offset the impact on communities and the environment, while ensuring community consent guides outcomes.

A community-focused approach

There is scope for local land owners and government to collaborate on green energy projects and achieve long term benefits. These collaborations could include land access agreements, which allow green energy companies to operate within the community.

Collaborations between landowners and green energy companies ensures the local area realises long-term benefits, including improved facilities and lower dependence on community service obligation rebates.

Other benefits include:

• Lower greenhouse gas emissions and greater uptake of clean energy options in the local area.
• Mitigating the inflationary impact of major investments on local towns and improving economic sustainability.
• Opportunities for local employment when contractors and workers are required for maintenance and construction, which stimulates economic growth and revitalises towns.

The burden of infrastructure assessment

Renewable energy infrastructure is critical to transitioning away from fossil fuels and reducing our impact on the environment. This shift is also an economic necessity, as our established utility networks are lagging in terms of their purposeful design and functionality.

In the past, conventional energy infrastructure was not subject to community planning discussion, except in more contentious cases. Renewable energy is now required to undergo extensive community planning, development and environmental assessments.

It’s possible that this shift indicates the newness of thinking around renewable energy projects and may be due to private developers taking a lead role over government and major utilities.

Improving community understanding of green energy

The community is often invited to weigh in on the impacts of solar panels, wind turbines and other green energy projects, while more conventional power projects, such as aerial transmission lines, are ushered through as ‘necessary infrastructure’.

The promise of green energy needs to be better understood by the community and government agencies, so that projects can be properly scrutinised without being delayed by unreasonable controls or restrictions.

Overcoming unnecessary delays requires a positive and proactive local government, and community. This can only happen if proponents and consultants improve their ability to articulate the advantages and implications of new energy facilities, including the significant benefits to community and commercial stakeholders.

Need support with renewable energy approvals?

We work with green energy providers and local communities to deliver feasible and sustainable strategies that deliver green energy transformations. Our team has a comprehensive knowledge of infrastructure, agricultural practices and land management, as well as experience delivering large renewable energy and industrial projects in regional WA.

For more information, please get in touch.