Hay Shire, in the western Riverina region of New South Wales, was designated as part of the South-West Renewable Energy Zone (REZ) in 2022 due to its abundant wind and solar resources, proximity to transmission infrastructure, and existing compatible land uses (Hay Shire Council 2023). This has positioned the region as a strategic hub for renewable energy development, creating new opportunities for the community.
“Hay’s topography, the scale of our primary production and the sparsity of our population really lends itself to this kind of development… our community recognises the need to diversify our economy because we are very exposed to climate change and international market pressures.” (RAI research interview, Hay)
Renewable energy development in Hay will bring substantial change to the physical, social and economic landscape of the region. Potential impacts include: a population surge as workers arrive in the region; pressure on already strained housing, transport, infrastructure and services; and economic and social change.
Hay Shire Council recognised that a strategic, coordinated approach was needed to leverage the benefits of this transformation while managing disruption to the community and traditional industries. In 2022, the council partnered with RE-Alliance to ensure that the community was prepared for the journey ahead.
“Our primary goal was to ensure that our community did not become divided. So, we went in early with that community education piece and, through that process, the community felt respected.” (RAI research interview, Hay)
While the original intention was to undertake local capacity-building with council staff and councillors, the process evolved into a three-year community-centred planning process culminating in a series of partnership principles for prospective developers and a commitment to develop a 10-year strategic economic roadmap.
Mapping the Journey
The council moved quickly to harness momentum and minimise the potential for division and misinformation in the community, which was already experiencing outreach from potential developers.
“One of the interesting things that we discovered is about the moment of impact. There is a general misunderstanding … that the moment of impact is when the first shovel goes into the ground. The moment of impact is the moment that the first developer speaks to the first landholder. And at that time, we had nine developers speaking to landholders … so we did it really quickly … because in small towns the grapevine will beat you every single time.” (RAI research interview, Hay)
The first step in this journey was a series of workshops facilitated by RE-Alliance for council members. These focused on understanding the reasons for the energy shift, what was proposed for Hay, and potential opportunities for the community from renewables development.
The next step was to bring together a small group of influential community members for an open conversation (REA 2025). Many of these community members were opposed to, or sceptical about, renewables. The workshop created a space for participants to speak about concerns and potential impacts from renewables as well as current challenges facing the community. These challenges included a lack of health and aged care services, economic reliance on agriculture, housing pressures and the rising costs of electricity. As the workshop progressed, the group explored whether a REZ could potentially help solve some of these problems (REA 2025).
These explorations continued in a series of public forums organised by council for the whole community. The community had the opportunity to ask questions, express concerns and articulate their hopes for the future. According to RE-Alliance, ‘most ultimately supported any move that would bring jobs and investment to Hay’ (REA 2025).
The Outcome
The outcome of the community engagement process was Fundamental principles for successful renewable development in Hay. This document provides a clear, unified message from the Hay community to government, industry and other stakeholders. The message is that the community is supportive of the clean energy transition and will ensure that it happens ‘with us, not to us.’ It explains that the town has a vision for its future and invites others to contribute to realisation of that vision. Finally, it outlines principles and a process for coordinated engagement.
The document has been instrumental in Hay’s negotiations with potential developers. So far, the community has secured commitments for cheaper electricity, as well as contributions to education, housing, transport and an aged care facility if developments proceed. The benefits of this approach are clear:
“Normally, renewable energy projects face significant opposition in rural areas, with as much as 90% of submissions typically being objections. But in Hay, that ratio has flipped – a situation Hay attributes to community and council engagement.” (REA 2025)
A Detailed Roadmap
The next step for Hay is the development of its 10-year Economic Transition Roadmap.
The council has partnered with The Next Economy to lead a participatory co-design process with community to develop the roadmap. Council views ongoing engagement with the community as central to the development of the town’s future.
“We’ve been doing these consultations and this work for three years now and it continues. To be able to get the most out of it, it’s a long process. We’ve got to give our community the support to think bigger than footy sheds and toilet blocks to deliver truly transformational projects.” (RAI research interview, Hay)
Hay’s experience has set a benchmark for rural communities in participatory planning for the renewable energy transition. By focusing on long-term planning and inclusive community engagement, the shire is well-positioned to take advantage of future opportunities and face associated challenges.
Recommendation
State and federal governments should resource regional communities to participate as partners in the energy transition.
Governments to fund community education and capacity building in renewable energy regions. Governments should fund the design and delivery of education and capacity-building programs for landholders, councils, community members and government agencies in regions facing significant renewable energy development.
Governments to fund community-led strategic planning in renewable energy regions. In regions where significant renewable energy development is planned, governments should fund communities to undertake cyclical strategic planning to identify local needs, priorities and principles for partnership.
Find out more in the full “Towards Net Zero: Building a Legacy” Report.
The REAL Deal: RAI’s Framework for Regional Energy Transition
As the renewable energy transition gathers pace, the Regional Australia Institute’s REAL Deal (Regional Energy and Legacy Deal) offers a new national framework to help regions build a lasting legacy.
What is the REAL Deal?
- The REAL Deal brings together government, industry and regional communities to align investment with local priorities and needs.
- Regional plans, funded by the Australian and state governments, identify local aspirations for REAL Deal investments.
- Local Legacy Funds pool mandatory developer contributions, enabling communities to invest at scale in infrastructure, services, jobs, skills development, education, housing, environmental initiatives or financial investments.
- Federal, state and local governments contribute funding from existing budgets, supporting local investments.
- Local decision-making determines how REAL Deal investments are allocated and prioritised, with governance models collaboratively designed with regional communities. First Nations and community representatives are integral to the process.
Why does it matter?
The REAL Deal positions regional communities as equal partners in planning and investment, ensuring the energy transition delivers social, economic and environmental value tailored to each region’s needs. By fostering collaboration and pooling resources, the REAL Deal framework empowers regions to achieve long-term aspirations and build a sustainable legacy.
Acknowledgment of Funding
The research presented in this report was funded by the RAI’s Intergovernmental Shared Inquiry Program. The program delivers an annual public interest research agenda focusing on topics of strategic importance to regional Australia through a partnership with federal, state and territory governments.
The RAI acknowledges our funding partners: Australian Government Department of Infrastructure, Transport, Regional Development, Communications, Sports and the Arts; New South Wales Government Department of Primary Industries and Regional Development; Queensland Government Department of Natural Resources, Mines, Manufacturing, Regional and Rural Development; South Australian Government Department of Primary Industries and Regions; Victorian Government Department of Jobs, Skills, Industries and Regions; and Western Australian Government Department of Primary Industries and Regional Development.
The views expressed in this report are those of the Regional Australia Institute and are not necessarily those of the Australian Government or the Department.