WA Proposes Community Funds from Renewable Energy Projects

The Western Australian government has proposed new guidelines requiring wind and solar farms to contribute to community funds in their host towns. Regional shires have expressed cautious welcome for these guidelines, emphasizing the need to ensure the payments are effectively implemented.

Project Scope and Payment Structure

These guidelines will apply to wind, solar, and standalone battery energy storage system projects that connect to the South West Interconnected System. The draft guidelines were released for consultation in August of the previous year.

Under the proposed structure, companies would pay a set price to communities based on the annual maximum energy generation capacity:

• Wind Power: Ranges from $15,000 for a 10-megawatt project to $1.75 million for a 2-gigawatt project.
• Solar Power: Calculated at $750 per megawatt.

Implementation and Local Concerns

Currently, the guidelines are not mandatory. Compliance is intended to be encouraged through existing mechanisms, such as eligibility for the Commonwealth government's Capacity Investment Scheme. The state government has indicated it may consider mandating these standards in the future if deemed necessary.

Local government representatives have raised several points. Shire chief executive David Nicholson noted the guidelines are not legislative, meaning compliance is not compulsory. Concerns exist regarding the governance structure needed to manage and equitably distribute potentially large sums of money to impacted communities.

The Shire of Victoria Plains is participating in a pilot program to help determine how the funds will be directed towards local priorities.

WA Energy Minister Amber-Jade Sanderson stated that the guidelines aim to ensure long-term benefits in regional areas and support communities hosting new renewable energy projects.