Through the first two RESS auctions, my Department has provided pathways and supports for communities to participate in renewable energy projects through the application of a community projects category and also through the requirement of a mandatory community benefit fund for all RESS projects.
To ensure genuine community participation in the separate community category of RESS, the definition of a community-led project for the purposes of the first RESS auction included the stipulation that such projects must be at least 51% owned by a Renewable Energy Community (REC). For RESS 2, this was increased to a 100% REC ownership requirement for entry to the community category.
Seven community projects were successful in the Renewable Electricity Support Scheme 1 (RESS 1) auction, (five solar and two wind projects). Of these seven projects, three have now energised. These community projects have been enabled by the RESS scheme and have now entered into private arrangements for selling their renewable energy. Other RESS 1 community projects are also expected to energise and participate in the upcoming Small-Scale Renewable Electricity Support Scheme (SRESS).
Ten community projects were successful in the RESS 2 auction. Of these, eight solar projects signed implementation agreements to deliver under the RESS 2 terms and conditions and two wind projects did not take up the RESS 2 offer. Some projects may also develop through alternative routes to market, including SRESS. Due to commercial sensitivity, it would not be appropriate to comment in any more detail on these remaining RESS 1 and 2 projects.
Through my Department’s continued engagement with RECs, there is evidence of significant challenges that REC projects may face with the competitive, auction based nature of RESS, along with grid and other and other barriers to project delivery.
Support for communities for the development of renewable projects will now transition to the non-competitive Small-Scale Renewable Electricity Support Scheme (SRESS). The tariffs for the export project phase of SRESS were announced in May and will support small-scale and community renewable projects. SRESS will offer a simpler route to market for community (and SME) owned renewable projects, aligning more closely to their experience and capacity.
My Department is continuing to develop the detailed terms and conditions of the scheme which are expected to be finalised shortly with applications due to open before the end of the year.
