VicGrid is also seeking feedback on exceptional circumstances under which property owners could be paid more than $40,000, such as impacts on culturally significant sites or tourism businesses that may lose income as a result of the change.
Loading
Landowners with lines on their properties will be paid annual instalments of $8000 per kilometre over 25 years, indexed to inflation, by the state government.
The plan also proposes community energy funds that will pay for local power improvements in regions near new renewable energy zones or transmission lines.
Laws creating these funds are expected in Victorian parliament in early 2025. Transmission companies and developers of new generation and storage projects in renewable energy zones would make mandatory contributions.
Grants would be allocated towards projects such as microgrids that improve power price and reliability for communities, or to create local benefits from the energy transition, including investment in new industries and research.
In February, the Commonwealth agreed to recommendations in a report by Australian Energy Infrastructure Commissioner Andrew Dyer calling for improved consultation from private companies building energy projects.
“Poor engagement practices experienced by landholders and community members have led to a material distrust of project developers and, particularly, developers of new, long-distance transmission projects,” Dyer’s report said.
Stephanie Bashir, the founder of Nexa Advisory, a consultancy firm that supports businesses transitioning to clean energy projects, said it would be difficult to rebuild trust with communities.
“VicGrid has been working very closely with AEMO, industry and communities to fix what’s been broken, especially in the Victorian context,” she said.
Loading
Bashir said a good example of a project that could win grassroots support was building houses for workers that could be returned to the community.
She said regional areas, including western Victoria, also suffered from “energy poverty” where their power supply was not as secure as in cities and suburbs.
“In some of those communities, simply giving money out as a means of compensation could come across as if you’re buying them out,” Bashir said.
Chris Sounness, the chief executive of Wimmera Southern Mallee Development, a business group that advocates for sustainable development, said housing and access to energy were the region’s two biggest challenges.
“We’re really keen to ensure that [the plan] delivers for our communities in an efficient way and effective way,” Sounness said.
Loading
Energy Minister Lily D’Ambrosio on Saturday said statewide consultation on the draft plan would mean it was best designed for the regions.
“By delivering benefits to regional communities, we’re making sure everyone benefits from the energy transition and ensuring we can deliver cheaper reliable renewable energy to all Victorians and keep the lights on as our ageing coal-fired generators retire,” D’Ambrosio said.
A spokesperson for electricity distributor AusNet encouraged landowners, neighbours and communities to respond to the government’s proposals. They will be finalised by the end of the year.
“This is an important opportunity for landholders, their neighbours and communities to have a say about a proposed solution to these complex issues,” the spokesperson said.
Start the day with a summary of the day’s most important and interesting stories, analysis and insights. Sign up for our Morning Edition newsletter.