Regional communities across Western Australia are about to get a seat at the renewable energy table, thanks to groundbreaking guidelines recently released by Energy and Decarbonisation Minister Amber-Jade Sanderson.
The delivery of these guidelines, which set a framework for renewable energy project developers to provide tangible benefits to host communities, marks one of the first major policy actions from Minister Amber-Jade Sanderson since taking on her newly created portfolio.
As a new Minister in the energy policy space, her early focus on progressing the long-awaited community benefit framework demonstrates a pragmatic and timely approach to one of the sector’s key issues.
This move reflects a clear understanding of the need to balance social licence, economic opportunity and energy system affordability.
It also signals a transition from informal, ad hoc benefit-sharing arrangements to a more structured and transparent model that provides certainty for both communities and developers.
Minister Sanderson said the draft guidelines were designed to support local communities and renewable energy proponents to reach fair and sensible agreements, delivering benefits where projects are hosted, while maintaining affordability for energy users across the state.
WA’s path to decarbonisation relies heavily on the development of a swathe of new large-scale wind, solar and battery storage projects, backed up by flexible gas-powered generation.
These projects will mainly be built in regional areas where there is an opportunity for communities and Indigenous groups to benefit economically, and through employment.
The draft guidelines provide a framework for how developers and local communities can work together to get the most appropriate long-term benefits from these projects.
Renewable energy project developers in Western Australia have a good track record of working cooperatively with local communities, and this is reflected in the high level of support for these projects in those communities that host them.
That is not necessarily the case in other states, where some developers have attracted criticism for not properly engaging with the local communities and landowners.
Like all developments, renewable energy projects need to earn a social licence, and it is critical for WA’s decarbonisation aims that communities where they are located support their development. This can best be achieved by the host communities receiving tangible benefits, through support for local initiatives, preferred employment opportunities, or payments to the local authority – usually for agreed specific purposes.
The draft guidelines provide an indicative range for these payments:
- $500 – $1,500 per MW per annum for wind farms; and
- $150 – $800 per MW per annum for solar farms.
There are already numerous potential renewable energy projects being developed in the Mid West, South West and Great Southern regions of WA, and towns in those areas could benefit substantially from these developments.
While most of the economic benefits are upfront, through an influx of construction activity, the guidelines seek to ensure longer lasting benefits are secured for the affected communities.
For example, a 200 MW wind farm near Kojonup in the Great Southern region could generate between $100,000 and $300,000 annually in community benefit payments.
These contributions, paid over the typical 25 to 30-year life of a project, represent a long-term financial commitment that extends well beyond the initial construction boom.
When thoughtfully designed, these funds can directly support local government priorities, from upgrading roads and recreational facilities to backing aged care, education and training initiatives.
Communities might also invest in environmental preservation, cultural heritage or social enterprises that deliver ongoing local impact.
The flexibility to align funding with place-based needs ensures benefits are not only tangible but also deeply meaningful to those who live in the region.
While the construction phase of renewable projects brings welcome economic stimulus, it’s the structured, annual contributions that will define the legacy of these developments.
By embedding long-term investment into the heart of energy transition planning, there is an opportunity to build stronger, more resilient regional communities, and to ensure they are not just sites of power generation but also centres of sustainable growth.
The draft guidelines have been published for public consultation and are available on Energy Policy WA’s website at www.energy.wa.gov.au.
Purple is encouraging clients and stakeholders involved in renewable energy development, regional planning, or community engagement to consider making a submission or seeking advice on how the proposed framework may affect project approvals, social licence strategies, or community investment planning.
Our team is available to support you in understanding the implications, shaping feedback, or developing proactive community benefit strategies aligned with these emerging expectations.
