Australia’s rollout of renewable energy projects is accelerating, but so too are tensions with the communities living alongside them.
Over the past decade, developers have faced increasing scrutiny for insufficient engagement with landholders, neighbours and regional stakeholders. In response, the federal government announced a new Developer Rating Scheme (DRS) on Friday, 15 August 2025.
Currently in its pilot phase and set for full rollout in March 2026, the DRS presents both opportunities and risks for developers. It provides a chance to build credibility and strengthen community relationships, but poor ratings could restrict access to government support and further complicate an already lengthy approval process. This article explores the origins of the DRS, what has already been announced, and its implications for renewable energy developers and affected communities.
How did we get here?
In February 2024, former Australian Energy Infrastructure Commissioner Andrew Dyer published the Community Engagement Review (the Review), which proposed establishing the DRS (for more background on the Review, see our interview with Andrew Dyer. Significantly, the Review found that there was “material distrust” between communities and developers of renewable energy and transmission projects.1 The Review found that 92% of respondents were dissatisfied with how developers engaged with them, and 89% were dissatisfied with how their concerns were addressed.2
In response, the Review made nine recommendations, including the establishment of the DRS, to assess the governance, project delivery, financial stability and community engagement capabilities of proponents of new energy infrastructure. The federal government accepted all nine recommendations in principle.3
At the time, some developers raised concerns that the DRS proposal would add further complexity to an already lengthy process. Recently, the Yass Mayor Jasmin Jones decried the DRS as ‘useless’.4
Although the pilot phase of the DRS proposal was initially slated to begin on 1 July 2025,[5] the federal government did not formally announce the rollout until 15 August 2025.
Where are we now?
The DRS pilot phase, launched on 15 August 2025, includes 60 developers who have signed up to test the assessment process before the scheme’s full rollout in March 2026. Global developer, AMPYR, has joined the DRS pilot, calling it a “vital step toward building trust, transparency, and accountability in the clean energy transition”, as has Tilt Renewables stating “it is critical in improving engagement across the industry”.5
Equifax Australasia Credit Ratings Pty Ltd has been appointed to design and manage the DRS, which will evaluate the business performance and community engagement of large-scale renewable energy and transmission developers seeking to deliver and operate projects on rural and regional land.
At the conclusion of the pilot, a public register will make information about developers who meet minimum standards freely available to landholders and communities. This mirrors the approach of NSW’s iCIRT scheme for the building industry, where only participants that meet the minimum standards are listed (although the DRS has not proposed a star rating system).
While participation in the DRS is currently voluntary, Australian Energy Infrastructure Commissioner Tony Mahar, has noted: “whilst the scheme is voluntary at this stage, we encourage all developers to participate and would question any that chose not to”.6
Impact on communities
For landholders and regional communities, the scheme offers greater visibility and transparency. It will provide stakeholders with independent information about a developer’s track record before they sign agreements or enter into consultation processes.
The aim is to build trust and lift engagement standards between renewable energy developers and the communities in which they operate. As highlighted in our recent two part series (see here and here), trust is imperative in building and maintaining social licence in renewable energy projects.
Impact on developers
For developers, the scheme introduces a new layer of reputational management. Strong performers will gain public recognition for their credibility, while those who fail to participate or meet the required standards will be excluded from the register. This register is expected to influence which developers secure land access agreements and the likelihood of success in tender processes. Smaller developers may also find the governance and reporting requirements particularly challenging and costly.
Importantly, while the scheme remains voluntary for now, Australian Energy Infrastructure Commissioner Tony Mahar has cautioned that if the scheme does not achieve its objectives, the government may introduce stricter regulations – reducing flexibility for industry.
What this means moving forward
The Developer Rating Scheme marks a pivotal shift in accountability for Australia’s renewable energy and transmission developers.
For communities, it provides an evidence-based tool to assess developer credibility. For developers, it creates both challenges and opportunities: compliance and reporting expectations will rise, but so too will the chance to differentiate and build trust through transparent, independent recognition.
The stakes are high. If the voluntary scheme succeeds, it could become a cornerstone of community engagement in the energy transition. If it falters through low uptake, poor design, or limited impact, the federal government may introduce mandatory regulation. Developers should therefore appreciate that community engagement is likely to become increasingly formalised and prescriptive. This is because engagement, governance, and transparency are no longer peripheral considerations – they are central to the success of renewable energy projects in Australia.
The Hamilton Locke team advises across the energy project life cycle – from project development, grid connection, financing, and construction, including the buying and selling of development and operating projects. For more information, please contact Matt Baumgurtel.
1Department of Climate Change, Energy, the Environment and Water, Community Engagement Review 2023 (Report, February 2024) 8.
2Ibid.
3Department of Climate Change, Energy, the Environment and Water, Initial Australian Government Response to the Community Engagement Review (Report, February 2024) 1.
4Rachel Williamson, ‘Renewable Developer Rating Scheme Delayed, Will Be Followed by “Strict” Regulations If It Doesn’t Work’, RenewEconomy (online, 6 August 2025) https://reneweconomy.com.au/renewable-developer-rating-scheme-delayed-will-be-followed-by-strict-regulations-if-it-doesnt-work/.
5Ampyr Australia, ‘Ampyr is proud to be part of the pilot for the Australian Government’s new Developer Rating Scheme’ (LinkedIn, 2 September 2025) https://www.linkedin.com/posts/ampyr-australia_ampyr-is-proud-to-be-part-of-the-pilot-for-activity-7368157157793464320-4xay.
6The Hon Chris Bowen MP, ‘New Scheme to Drive Higher Standards for Regional Energy Communities’ (Media Release, 15 August 2025) https://minister.dcceew.gov.au/bowen/media-releases/new-scheme-drive-higher-standards-regional-energy-communities, quoting Australian Energy Infrastructure Commissioner, Tony Mahar.
