participation, and resource councils and community organisations. The Commonwealth’ s role is to provide clarity and coherence in a federated system.
Scope 1 – Direct Control( State): States hold approval powers, REZ planning and infrastructure coordination. They should appoint single coordinators, apply consistent benefit-sharing formulas, and enable co-design and co-ownership.
Scope 2 – Sphere of Influence( Local): Councils are the frontline interface for communities. With proper resourcing, they can convene place-based strategies, manage pooled benefit funds, and ensure that local priorities shape outcomes rather than ad-hoc agreements.
Scope 3 – Systemic Support( Crosssector): Beyond projects, governance must support industry-wide learning: shared measurement frameworks, transparent reporting, and independent dispute resolution. These mechanisms build confidence for both communities and investors.
Piloting this four scope framework in a Renewable Energy Zone would provide an evidence base for scaling. By clarifying roles across four scopes, it transforms governance from a barrier into an enabler of enduring social value.
IMPLEMENTATION CONSIDERATIONS AND NEXT STEPS Enhanced governance frameworks can address the coordination failures and expectation gaps that currently undermine trust. When communities are treated as co-creators rather than passive recipients, when roles are clearly defined, and when transparent frameworks provide predictable expectations, the transition generates fewer conflicts and delivers stronger regional outcomes.
International experience shows that frameworks adapted to Australian conditions and validated through industry consultation can enable equitable participation. Implementation should start with pilot programs in selected Renewable Energy Zones, testing new approaches to benefit sharing, co-design, and measurement. These pilots would generate the evidence needed to refine models while maintaining community trust and investor confidence.
CONCLUSION Australia’ s energy transition presents unprecedented opportunities, but fragmented governance threatens to turn opportunity into division. All stakeholders want success, yet current arrangements prevent the coordination required for equitable community outcomes. The choice is whether to act proactively while confidence is strong, or reactively after trust has been eroded.
International examples show what is possible: governance frameworks that eliminate role confusion, guarantee community participation, and turn investment into enduring local value. The evidence exists, industry is signalling the direction, and communities are demanding change. What is required now is coordinated implementation— so governance becomes an enabler of social value, ensuring regional Australia captures the full potential of the energy transition.
REFERENCES
1. Clean Energy Council.( 2025). Empowering communities: The local benefits of renewable energy [ Fact sheet ]. Clean Energy Council. Retrieved from https:// cleanenergycouncil. org. au / getmedia / b103acf9-5dd3-4d95-99d3- 7e1e67821ec0 / the-local-benefits-of-renewableenergy. pdf
2. Clean Energy Council & Farmers for Climate Action.( 2024). Billions in the bush: Renewable energy for regional prosperity. Clean Energy Council & Farmers for Climate Action. Retrieved from https:// cleanenergycouncil. org. au / newsresources / billions-in-the-bush-landholderbenefits
3. Community Power Agency.( 2024). Guide to regional benefit sharing: How to create legacy outcomes for regions that host multiple renewable energy projects. Community Power Agency. https:// cpagency. org. au / wp-content / uploads / 2025 / 07 / Guide-to-Regional-Benefit- Sharing. pdf
4. Dyer, A.( 2023, December). Community Engagement Review Report to the Minister for Climate Change and Energy Report by the
Australian Energy Infrastructure Commissioner, Department of Climate Change, Energy, the Environment and Water ]. Commonwealth of Australia. https:// www. dcceew. gov. au / sites / default / files / documents / communityengagement-review-report-minister-climatechange-energy. pdf
5. Department of Climate Change, Energy, the Environment and Water.( 2023). Powering the regions fund. Australian Government. https:// www. dcceew. gov. au / about / news / safeguardmechanism-reform-and-powering-regionsfund-hys
6. EnergyCo.( 2023). First Nations guidelines: Increasing income and employment opportunities from electricity infrastructure projects. New South Wales Government. https:// www. energyco. nsw. gov. au / community / firstnations-consultation-guidelines
7. Sustainable Solutions Advisory Pty Ltd.( 2023, October 19). Enabling energy justice through place-based approaches to expanding transmission infrastructure( Prepared for Energy Consumers Australia). Energy Consumers Australia. https:// energyconsumersaustralia. com. au / our-work / research / enabling-energyjustice-through-place-based-approaches-toexpanding-transmission-infrastructure
8. Sustainable Solutions Advisory Pty Ltd.( 2023, October 19). Enabling energy justice through place-based approaches to expanding transmission infrastructure( Prepared for Energy Consumers Australia). Energy Consumers Australia. https:// energyconsumersaustralia. com. au / our-work / research / enabling-energyjustice-through-place-based-approaches-toexpanding-transmission-infrastructure
9. Shetland Islands Council.( n. d.). Community benefit frameworks. Shetland Islands Council https:// www. scbf. org. uk /
10. Toke, D., & Breukers, S.( 2012). Community wind energy in Europe and Denmark: Lessons for policy and practice. ClimateXChange. https:// www. climatexchange. org. uk
ABOUT THE AUTHOR
VANESSA PILLA Vanessa Pilla is the co-founder of PATHMAKER, a female founded social enterprise, providing strategic advisory services that empower organisations to create, deliver and measure social value.
ECONOMIC DEVELOPMENT JOURNAL VOL 18 NO 3 2025 09