New state rules could give West Vic communities more leverage in renewable energy negotiations

As VicGrid finalises Renewable Energy Zones across the state, how communities benefit from wind, solar and battery projects will soon become much clearer.

But as one Moyne Councillor asks: what about wind farms that have been operating for years?

What’s going on: Moyne Shire Council is a municipality that sits within the South West Renewable Energy Zone, and hosts several existing renewable energy projects.

• At a recent council meeting, councillor Jim Doukas questioned the current system around community benefit schemes, an amount of money set aside by renewable energy companies to distribute to the communities where projects are developed.

• These funds are often used to fund community organisations or help to build infrastructure, such as playgrounds or new firefighting equipment.

The current climate: Currently, there are no strict guidelines on how much money each developer is required to allocate, or how it’s distributed.

• “The big disparaging thing is… some of the bigger wind farms have given half as much as the smaller ones. We need to do something about that, definitely,” Doukas told the meeting.

A new solution: This issue, however, is expected to be addressed for new projects within VicGrid’s Community Engagement and Social Value Guidelines, which will set minimum expectations for how renewable energy developers engage with landholders, neighbours, communities and Traditional Owners.

How will they work? The guidelines are intended to improve communication between developers and communities and ensure renewable energy projects deliver lasting social and economic benefits.

A new standard: While the guidelines are still being finalised, they are expected to form part of the Victorian Access Regime, a new system that will determine which renewable energy projects can connect to the state's transmission network.

• Under the regime, developers seeking access to the grid will need to demonstrate how they meet the guidelines' expectations around community engagement and social value.

What should locals expect? Tony Goodfellow is the policy and engagement manager at RE-Alliance, a non-profit advocating for better renewables in the regions.

He told the Brolga the newly declared Renewable Energy Zones and the Victorian Access Regime should help create clearer expectations.

• While the final Community Engagement and Social Value Guidelines are yet to be finalised by VicGrid, Goodfellow said the draft framework outlined minimum standards for community engagement, social value and economic benefits for communities, landholders and Traditional Owners.

• “For impacted communities, this should mean conversations with proponents [developers] are not just about the dollar value of a community fund, but about the kinds of benefits that will make a practical difference locally,” he said.

Leverage to negotiate: Goodfellow explained the aim was to lift standards across the renewable energy sector and give communities a stronger basis to negotiate benefits that reflected local priorities.

• He said existing renewable energy projects would generally be expected to continue operating under their current planning approvals.

• Goodfellow added there were no clear examples of communities renegotiating benefit-sharing arrangements after projects had begun operating. This, he said, was why it is “important to get community benefit arrangements right before projects begin operating.”

🗣️ “Councils such as Moyne can play an important leadership role by working early with industry, communities and government to ensure the right level of benefits and secure strategic legacy outcomes, rather than leaving each project to negotiate benefits in isolation,” he said.

A community perspective: Local farmer and CFA brigade captain Tim Hill has served on the Dundonnell Wind Farm Community Support Fund committee since the wind farm began operating in 2020, helping oversee the distribution of funding to local groups and projects. 

• While the fund contributes $50,000 annually, half of that amount is currently allocated to repaying a loan for a new fire shed, with the remaining $25,000 distributed through an application process assessed by the committee.

• Applications are assessed on their merits through an online process, but Hill said “the local knowledge of community members is so important” in deciding which applications were successful.

Amicable and effective: Hill said although “it was very tentative in the early days”, the relationship established between the community and Tilt Renewables – the company behind the wind farm – was respectful.

• “There were relationships that needed to be established, and there was a certain degree of unease about the impact that this development was going to have,” he told the Brolga. 

• “But over time, and especially as a result of some serious effort by one or two Tilt Renewables representatives, we have developed a pretty effective working relationship.”

People power: Hill noted the best way to make the most of funding opportunities from renewable energy projects to achieve long-term benefits for rural communities came down to the people involved on either side.

• “I have to say that Tilt Renewables on the whole has worked very hard to develop these relationships, and we appreciate that.”