Could a Renewable Resources Payment Help Australia Build Clean Energy Faster?
Australia’s clean energy transition requires substantial new investment in renewable generation, storage and transmission. However, raising capital is only part of the challenge. Projects must also secure approvals, gain community support and maintain the confidence of the regional communities that host them.
The Clean Energy Council has proposed a national Renewable Resources Payment scheme to address this challenge. The proposal seeks to replace Australia’s fragmented approach to community benefit-sharing with a permanent and transparent payment system (1).
For investors, the proposal raises important questions about project costs, approval risk, community acceptance and the long-term value of renewable energy assets.
What is a Renewable Resources Payment?
Under the Clean Energy Council’s proposal, every megawatt-hour of renewable electricity generated would attract a legislated payment. The money would be paid directly to the local councils responsible for the communities hosting the infrastructure and would continue for the operating life of the project.
Local councils would decide how the money was used. Depending on local priorities, this could include roads, childcare centres, medical facilities, recreational infrastructure or other community services.
The proposal is based on a simple principle: regional communities hosting renewable energy infrastructure should receive a clear and continuing share of the economic value created by that infrastructure.
At present, benefit-sharing arrangements can include negotiated payments, community funds, grants, sponsorships and project-specific agreements. These arrangements vary between developers, projects and jurisdictions.
The proposed scheme would replace this patchwork with a nationally consistent system. The Clean Energy Council has compared the concept with the royalties paid by the coal and gas industries, although the payment would be linked to electricity generation rather than the extraction of a finite resource.
Importantly, the proposal is still at an early stage. The payment rate, eligibility thresholds, collection mechanism, treatment of existing projects and implementation timetable have not been determined. These details would need to be developed in consultation with governments, industry, councils and regional communities.
Why is the scheme being proposed?
The central issue is trust.
Renewable energy projects can provide employment, investment and additional income to regional areas. They can also change landscapes, increase pressure on local roads and services, and create concerns about land use, construction activity and the distribution of economic benefits.
The Australian Government’s Community Engagement Review identified equitable benefit-sharing as an important part of improving community participation in the renewable energy transition. The Government accepted all nine recommendations from the review in full or in principle (2).
Some jurisdictions have already introduced their own arrangements. In New South Wales, for example, access fees paid by generation and storage projects within Renewable Energy Zones help fund the Community and Employment Benefit Program. That program supports local infrastructure, employment, training, small businesses and First Nations initiatives (3).
The Renewable Resources Payment proposal would go further by establishing a national payment linked directly to renewable electricity generation.
The Clean Energy Council argues that more visible, reliable and locally controlled benefits could help communities connect renewable energy projects with tangible improvements in their towns. If successful, this may reduce opposition, strengthen relationships and lower the risk of projects becoming trapped in extended approval and consultation processes.
What would the implications be?
For regional communities, the scheme could provide a predictable funding stream that continues beyond the construction phase. This is important because many of the immediate benefits from renewable projects, including construction employment and local procurement, can decline once a project becomes operational.
For councils, permanent payments could improve their capacity to plan and fund local infrastructure. It would also place responsibility for spending decisions with elected representatives who are directly accountable to their communities.
For developers, a national framework could provide greater consistency. Instead of negotiating separate arrangements for every project, developers may be able to incorporate a standard payment into project planning and financial modelling.
However, consistency will only be valuable if the scheme is designed carefully. A payment set too high could reduce project returns or increase the cost of new electricity supply. A poorly coordinated scheme could also duplicate existing obligations rather than replace them.
The Clean Energy Council has stated that the proposal is not intended to impose an additional cost. Instead, it is intended to provide a clearer and more effective way of allocating the money developers already spend on community benefits. Whether this can be achieved will depend on how existing agreements, state programs and voluntary commitments are treated.
What do investors need to know?
Investors should focus on both the potential cost and the potential reduction in project risk.
A legislated payment would become part of a renewable project’s operating cost base. Once the payment rate and eligibility rules are known, investors would need to incorporate the obligation into cash-flow forecasts, valuations, financing models and expected returns.
The cost could also affect power purchase agreement pricing, merchant revenue requirements and the competitiveness of projects seeking government support or grid access.
However, the payment should not be assessed in isolation. Community opposition can contribute to planning delays, redesign costs, legal expenses and the cancellation of otherwise viable projects. These risks can be far more expensive than a transparent and predictable payment established before construction.
Investors should therefore consider whether the scheme could improve project certainty. A modest, clearly defined payment may be commercially beneficial if it strengthens community acceptance and reduces the risk of extended delays.
The proposal may also favour experienced developers with strong community engagement practices, disciplined cost control and the ability to incorporate new obligations into project economics. Projects with thin margins, weak stakeholder relationships or optimistic approval assumptions may be more exposed.
Until the design is released, investors should monitor:
the proposed payment per megawatt-hour;
whether the scheme applies to new and existing projects;
which technologies and project sizes are covered;
how payments interact with existing state and local arrangements;
whether costs can be reflected in contracts or government support mechanisms; and
the reporting and accountability requirements placed on councils and developers.
The Bottom Line
The Renewable Resources Payment proposal recognises that Australia cannot complete its energy transition without regional communities.
For investors, the proposal would introduce a new financial consideration, but it may also help address one of the industry’s most persistent risks. A permanent and transparent community payment could increase operating costs while reducing approval delays, political resistance and uncertainty.
The final outcome will depend on the design. If the scheme replaces fragmented arrangements and provides genuine local benefits without duplicating existing costs, it could improve the investability of renewable energy projects.
Clean energy infrastructure requires more than capital and technology. It also requires durable relationships with the communities expected to host it for decades.
References
(1) Clean Energy Council, Clean Energy Council calls for renewable resources payment to put regional communities first, 28 July 2026.
https://cleanenergycouncil.org.au/news-resources/clean-energy-council-calls-for-renewable-resources-payment-to-put-regional-communities-first
(2) Department of Climate Change, Energy, the Environment and Water, Community Engagement Review, updated 5 May 2026.
https://www.dcceew.gov.au/energy/renewable/community-engagement/review
[3) EnergyCo, NSW Government, Community and Employment Benefit Program, updated 14 May 2026.
https://www.energyco.nsw.gov.au/living-in-a-renewable-energy-zone/community-employment-benefit-program
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