New Rating System Enhances Trust in Renewable Energy Developers
An innovative online tool has been introduced to independently evaluate renewable energy developers and transmission firms based on seven essential criteria, such as community engagement, governance, and overall business practices. This new rating system has officially commenced, with five companies being the first to receive ratings.
On Thursday, Australian Energy Infrastructure Commissioner Tony Mahar unveiled the Developer Rating Scheme (DRS), following approximately 14 months of effort since the federal government’s partnership with Equifax Australasia Credit Ratings was initiated to bring this concept to fruition.
Background and Objectives of the DRS
The DRS emerged as a vital recommendation from a comprehensive review focused on community engagement, which was overseen by Mahar’s predecessor, Andrew Dyer, the inaugural Australian Energy Infrastructure Commissioner. This review, commissioned by Federal Energy Minister Chris Bowen, highlighted ongoing issues with inadequate community interaction that have fostered significant distrust towards renewable energy developers, particularly those involved in substantial new grid transmission projects.
Mahar noted that the DRS was created after extensive discussions with various stakeholders, including government entities, landholders, community representatives, and industry leaders. Bowen mentioned last year that a total of 60 developers had engaged in piloting this scheme, which lays a robust foundation for its future expansion.
Initial Ratings and Participant Insights
Mahar described the initial cohort of five “early adopting companies” – Iberdrola, Tilt Renewables, RWE, Stromlo Energy, and Mint Renewables – as pioneers in this initiative. He anticipates that additional firms will soon join, with over 20 others currently undergoing evaluation.
According to the rating register, three of the five companies achieved an outstanding 5-star rating for community engagement, while the remaining two secured a commendable 4.5 stars. The DRS website explains, “A 5-star community engagement score identifies market leaders who exceed standard practice through deep benefit-sharing and resilient governance.”
It further states that these leading organisations establish formal co-decision making processes, ensuring that stakeholder involvement meaningfully shapes projects from the early planning stages right through to completion.
Future Aspirations and Industry Standards
Mahar expressed his hope that participation in the DRS will eventually become a standard aspect of planning and approval procedures throughout Australia. Notably, this participation is already mandated for developers seeking federal backing for projects under the Capacity Investment Scheme (CIS) as per the 11th tender.
While involvement in the DRS is presently voluntary, Mahar is optimistic that it will evolve into a new industry benchmark.
Company Perspectives on the DRS
Paul Simshasuer, the CEO of Iberdrola Australia, remarked that the DRS would offer communities better insights into the capabilities and commitments of companies proposing energy projects in their respective areas. He proudly mentioned their 5-star community engagement achievement, attributing it to their team’s dedication to working closely with regional communities.
“This initiative is about providing landholders and the community at large with clarity regarding the values and priorities of energy developers and how these are implemented,” Simshasuer stated.
Tilt Renewables’ CEO Anthony Fowler highlighted that the company’s 5-star rating reflects feedback garnered from project landholders, neighbours, communities, and First Nations partners. “This rating illustrates our pledge to act honourably, treat people fairly, and fulfill our commitments,” said Fowler.
While pleased with the recognition, he emphasised that their work is far from over. “To ensure all Australians gain from the energy transition, we will continue engaging with communities to shape our projects, address concerns, and mitigate impacts wherever possible.”
Meanwhile, Garth Heron, a director at Stromlo Energy, expressed pride in obtaining a “trustworthy” rating under the DRS, along with a commendable 4.5 stars for community engagement. “The thorough assessment process has provided significant insights for our company. We urge all developers to get involved in this valuable initiative,” he remarked.
Heron added, “Trust is fundamental in our industry. By incentivising developers to consistently engage in best practices for community relations, the DRS will enhance community confidence as we construct the new power stations vital for Australia.”
