Australia’s energy transition is not just an economic opportunity. It is the defining nation-building project of our generation.
But unless we act now, we risk leaving regional Australians on the sidelines of the very revolution they are powering.
This transition is not a hypothetical or a distant over the horizon idea. It is happening now, and it is happening in regional Australia. Yet, the mechanisms to support our communities are fragmented and disjointed, leaving regions to fight for themselves and, in many cases, negotiate individually.
That is why the Regional Australia Institute (RAI) has released Towards Net Zero: Building a Legacy, calling for a new approach and new national framework called the REAL Deal (Regional Energy and Legacy Deal).
The REAL Deal is a once-in-a-generation chance to ensure the energy transition leaves a lasting legacy. It moves us beyond today’s patchwork of benefit-sharing arrangements, where some communities secure funding and others miss out – towards a fair, consistent model across the country.
RAI modelling shows that large-scale wind and solar projects are expected to inject more than $25 billion into the economy and generate nearly 19,000 new jobs across regional Australia. This is an extraordinary opportunity. But investment alone does not create thriving, resilient communities. If we are to succeed as a nation, regional Australians must be active participants in this transition – not just passive hosts.
At its heart, the REAL Deal aims to align industry contributions with government investment and local decision making to deliver a lasting legacy in regional communities.
The key elements are:
- Regional communities would be funded to develop regional plans and then prioritise the execution and funding to realise their regions aspirations.
- Industry would contribute to agreed amounts in pooled regional benefit funds – Local Legacy Funds. This will facilitate significant investment that deliver long term social, economic and environmental benefits.
- Governments at federal and state level would make strategic funding contributions to local investments. Funding could be allocated from existing government budgets such as infrastructure, health, housing or education pipelines to align with regional goals
Regional Australians are already carrying much of the load in this transformation. Nearly all utility-scale renewable energy projects are based in the regions, drawing on their already limited services and capacity. Too many communities still grapple with generations of under-investment in housing, healthcare, education, childcare and workforce training. The REAL Deal offers a pathway to help solve these long-term pain points.
If we can leverage this unprecedented investment for good, we can maximise and scale funding to build legacy projects that will ultimately reduce the current inequality and disparity facing our regions.
This new approach seeks to create a collaborative funding model that will build more resilient, dynamic and prosperous regions that feel as though they are in the driver’s seat and not a passenger.
Our research shows that when regions are actively involved, outcomes improve, communities give stronger support, projects are more likely to succeed, and the benefits are broader and longer lasting.
If governments want regional Australians to embrace the energy transition, they must do more than seek approval to create a social licence. They must partner with regions, embed fairness, and guarantee that benefits are shared. This is a just transition.
Understanding the need for a new narrative is vital, a clear message that optimises the win-win, rather than marginalises the people and places who are already powering the nation.
But it will only happen if we have the courage and vision to put in place a national framework that delivers for our regions. We need all parties to come to the table to reimagine our future, to make a deal work.
The REAL Deal will leave a legacy we can all be proud of. We have a choice - deal or no deal.
Liz Ritchie
CEO, Regional Australia Institute