An online rating tool that independently ranks renewable energy developers and transmission companies against seven key criteria, including community engagement capability, governance and business conduct, has gone live – with five companies the first to be rated.
Australian Energy Infrastructure Commissioner (AEIC) Tony Mahar on Thursday announced the launch of the Developer Rating Scheme (DRS), and the commencement of a public rating system, roughly 14 months after the federal government committed to work with Equifax Australasia Credit Ratings to get it up and running.
The DRS was a key recommendation from a major review of community engagement led by Mahar’s predecessor and the inaugural Australian Energy Infrastructure Commissioner, Andrew Dyer.
The review, commissioned by federal energy minister Chris Bowen, found that repeated instances of poor community engagement had led to a “material distrust” of renewable energy project developers and, in particular, developers of major new grid transmission projects.
Mahar says the DRS has been developed through extensive consultation with governments, landholders, community representatives and industry – Bowen said last year that 60 developers had signed up to pilot the scheme – and now provides a strong foundation for future growth.
“This has been a significant body of work, and importantly, this is just the beginning,” Mahar said in a statement on Thursday. “As more businesses participate and more assessments are undertaken, the DRS will continue to evolve and strengthen over time.”
Mahar says the initial group of just five “early adopting companies” that put themselves forward for rating – Iberdrola, Tilt Renewables, RWE, Stromlo Energy and Mint Renewables – will soon be joined by others, with more than 20 further companies said to be in the process of being rated.
According to the register, three of the five companies listed thus far have achieved a perfect score of 5 stars for community engagement, while two have been rated at 4.5 stars.
According to the website, “A 5-star community engagement score identifies market leaders who exceed standard practice through deep benefit-sharing and resilient governance.
“These organisations establish formal co-decision processes, ensuring stakeholder involvement meaningfully shapes the project from the early regional planning phases through to end-of-life,” it says.
Mahar says that over time, he hopes to see participation in the DRS become a “standard requirement” within planning and approval processes across Australia – it is already a requirement of developers seeking federal support for projects for Capacity Investment Scheme (CIS), as of the 11th tender.
“Communities should have access to this information and developers should be encouraged to demonstrate their commitment to doing the right thing,” Mahar said on Thursday.
“While participation in the DRS is currently voluntary, it is my expectation that it becomes a new industry benchmark.”
Paul Simshasuer, the CEO of Iberdrola Australia said the DRS would help communities better understand the background of companies proposing energy projects in their region and highlight their commitment to best practice.
“We are very proud to have achieved 5/5 stars for our community engagement. Our team members work with regional communities each day, and their passion for listening and working together is evidenced by this fantastic outcome.
“The DRS is about giving landholders and the broader community an insight into what the values and priorities of energy developers are and how these are put into practice,” Simshauser said.
Tilt Renewables CEO Anthony Fowler, said his company’s 5-star rating drew on feedback from its project landholders, neighbours, communities and First Nations partners.
“It reflects our commitment to acting in good faith, dealing fairly with people and delivering on our commitments,” Fowler said on Thursday.
“While we’re delighted to receive the highest possible rating, we aren’t resting on our laurels. Our commitment to ensuring all Australians benefit from the energy transition means continuing to work with communities to shape our projects, listen to concerns and minimise impacts wherever we can.”
Stromlo Energy director Garth Heron said the Australian company was proud to receive a “trustworthy” rating under the DRS, and 4.5 out of 5 stars for community engagement.
“The rigorous assessment process provided valuable insights for our business. We encourage all developers to participate in this worthwhile scheme,” Heron said on Thursday.
“Our industry is built on trust. By incentivising developers to continuously invest in best-practice community engagement, the DRS will help strengthen community confidence while we build the new power stations that Australia needs.”
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Sophie Vorrath
Sophie is editor of Renew Economy and editor of its sister site, One Step Off The Grid . She is the co-host of the Solar Insiders Podcast. Sophie has been writing about clean energy for more than a decade.
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