Call for better rules around how renewable energy companies fund local projects

As it currently stands, renewable energy companies in our area are not required to enter a planning agreement with Dubbo Regional Council. However, many companies choose to do so.

What the pay to the council is decided based on negotiations.

X-ELIO, the company behind the Forest Glen Solar Farm, entered into the planning agreement with Dubbo council on May 15.

Under the voluntary agreement, the developer will pay the council $200,000 per year across a five year period. The money will be used for social housing.

X-ELIO country manager in Australia Belinda Fan said every X-ELIO project had a community plan that was designed to promote the socio-economic wellbeing of the community near the project.

"For the Forest Glen project, based on conversations with the Dubbo Regional Council and local stakeholders, we were aware that local housing is an urgent need for the region, especially with the significant growth of renewable and transmission projects in the Central Orana Renewable Energy Zone," Ms Fan said.

"It made sense for the Forest Glen project's Community Plan to facilitate the launch of a housing program to address this need, and we were pleased to collaborate with the Dubbo Regional Council on this worthy cause."

Squadron Energy has two planning agreements with the council - one for the Spicers Creek Wind Farm and another for the Uungula Wind Farm - as well as one currently in the works for the Dubbo Firming Power Station.

The Uungula Wind Farm Planning, which started in December 2021, requires Squadron Energy to pay $3309 per annum per turbine. It means the council will receive about $320,000 per year.

While the Spicers Creek Wind Farm, which started in March 2024, states Squadron Energy has to pay 1.5 per cent of the capital investment value of the final layout of the projected, prorated based on the number of turbines.

The money for both projects is split between community benefit funds, roads and other council projects.

Meanwhile, the proposed planning agreement for the Dubbo Firming Power Station is for a contribution of $950,000 at the start of construction, which will be used for council's public art strategy.

Squadron Energy's Central West Orana regional economic development facilitator Bart Sykes said as Australia's leading renewable energy developer, Squadron Energy had a range of market leading initiatives to help support communities across the long term.

It not only includes the voluntary planning agreements, but also community benefit funds and sponsorship.

"We recognise that each community is different, and we work hard to consult with communities and build relationships to deliver benefits that will make a positive lasting contribution to each region," Mr Sykes said.

The council has a renewable energy benefit framework to provide guidance to developers about what is expected from them in a planning agreement, however, what they decide is down to negotiation.

Dubbo mayor Mathew Dickerson has made a submission to the National General Assembly of Local Government calling for consistency around planning agreements for renewable energy projects.

He said the framework would "eliminate the need for individual councils to negotiate separate voluntary planning agreements for each project proposal within their respective local government areas".

"The transition to Net Zero is already having an impact of local councils across the nation and it would be fair if those impacted councils received funds to benefit their residents," Cr Dickerson said in the submission.

"A consistent national approach would mean that the same benefits were delivered across each state and each council area, rather than leaving it up to the negotiation skills of each council and each proponent."

X-ELIO supports a national framework that facilitates collaboration between renewable projects and local councils, while also encouraging transparency that supports the renewable industry's social licence.

Ms Fan said the company believes local communities should benefit from every project and those communities know best how to support their own region.

"For example, regional councils could aggregate benefits from multiple renewable and transmission projects to support significant improvements such as housing and telecommunication projects," she said.

"In light of these, public-private collaboration and agreements between companies and councils and governments could be a great way to distribute these benefits in a localised and effective manner."

Ms Fan said a national framework could also provide regulatory certainty and potentially expedite the development of renewable projects.

For Squadron Energy, Mr Sykes said a streamlined approach to community benefit sharing would have merit, however "genuine and extensive community consultation [was] critical to ensure its success".