Big changes for regulation of WA renewable energy projects
What you need to know
- Western Australia is advancing its renewable energy transition through two key regulatory initiatives.
- The WA Government has released a draft Community Benefits Guideline seeking to ensure local communities hosting renewable energy projects receive meaningful and lasting benefits. The draft Guideline is targeted at large-scale, grid-connected renewable energy generation and storage projects, such as wind turbines, solar farms and battery installations.
- The WA Planning Commission is developing a Renewable Energy Planning Code to establish consistent, statewide standards for energy infrastructure development, including battery energy storage systems, transmission systems and renewable energy facilities. The recently released draft Code focuses on criteria for wind farm development applications.
What you need to do
- Both frameworks will shape how renewable energy projects are planned, approved and integrated with host communities across WA. Proponents should review the Draft Guidelines and Code and consider the impact on their existing and future projects.
- Affected stakeholders should consider engaging with the WA Government in relation to the draft Code and Guidelines.
- These reforms should be considered in the context of WA's other recent environment and planning regulatory reforms and also the impact of the new State Development Act 2025.
Draft Guideline on Community Benefits for Renewable Energy Projects
The WA State Government has recognised that the State's future energy needs rely on transitioning to renewable resources, however, this will bring challenges and changes to local landscapes which are already causing tension among local communities. The WA Government, through PoweringWA, is developing a Community Benefits Guideline to recognise the impact of the energy transition and ensure host communities experience lasting benefits and economic opportunities from it.
In mid-2025, the WA Government released its Draft Guideline on Community Benefits for Renewable Energy Projects. Consultation on the Draft Guideline ended in August 2025 and a final guideline has not yet been released.
In the meantime, the Draft Guideline can assist developers to prepare for the impact of the final guideline.
Project targets
The Draft Guideline is targeted at large-scale, grid-connected renewable energy generation and storage projects, such as wind farms, solar farms and battery installations. It is not intended for behind-the-meter or embedded generation projects.
Benefits and consultation
Financial and non-financial community benefit sharing arrangements are encouraged, such as legacy funding and grant initiatives, sponsorship, community infrastructure, employment opportunities and co-ownership arrangements that should continue throughout the life of the project. Benefits should be informed by the impact of the project on the community, the size, the amenity of the area and construction benefits.
Guidance is provided to benchmark the best practice benefit values. The presented values range from:
- $500 – $1,500 per MW per annum for wind projects; and
- $150 – $800 per MW per annum for solar projects,
noting these contributions would be paid over the life of the development and indexed to inflation.
The Draft Guideline also provides tools and support for developers and communities about approaching these negotiations, e.g. suggesting developers partake in early, continuous and transparent consultations with communities.
Governance and administration
Part of the community benefits arrangement may include the deposit of payments into a "community benefits fund". Further guidance is provided surrounding the governance and administration of the community benefits fund.
There are numerous ways to structure the funds, with some suggested structures including:
- Local Government Administered;
- Community Trust Fund; or
- Local Government-led Community Trust Fund.
It is presented that ultimately there will need to be discussions between the developer and community about facilitating these arrangements to ensure project viability and community satisfaction.
Insights
WA's proposed non-statutory and principles-based guideline is very different to the mandatory framework introduced by the Queensland Government in the Planning (Social Impact and Community Benefit) and Other Legislation Amendment Act 2025 (Qld). The Queensland legislation requires:
- a social impact assessment and community benefit agreement to be finalised before lodging a development application for wind and solar farms of 1 MW or more;
- local governments to be signatories;
- benefits to match the scale of social impacts rather than a fixed $/MW rate; and
- the Chief Executive to exercise limited discretion to permit lodgement without a social impact assessment or community benefit agreement, with associated reporting obligations.
We discuss the Queensland regime in more detail in our article "New community benefit system means additional challenges for renewables for Queensland renewable energy projects".
For WA proponents, this comparison highlights WA's flexibility on timing, governance and benchmark value ranges. Queensland offers a more prescriptive, front-loaded model, suggesting that early engagement and regimented documentation will better position projects if WA later tightens its regime.
Renewable Energy Planning Code and Guidelines
The WA Planning Commission is developing a Renewable Energy Planning Framework with the aim of providing clarity and consistency to industry, community and stakeholders across development of energy infrastructure projects. A key element of the Framework is the proposed Renewable Energy Planning Code.
A Draft Renewable Energy Planning Code was released for public consultation in December 2025, along with a Draft Renewable Energy Planning Code and Guidelines.
The Renewable Energy Planning Code is intended to provide consistent, statewide development assessment standards for energy infrastructure, including battery energy storage systems, transmission systems and renewable energy facilities. The Draft Code initially focuses on criteria for wind farm development applications.
The Code will be a planning code under section 32C of the Planning and Development Act 2005 (PD Act) and becomes effective once incorporated into a local planning scheme.
In particular, the Code aims to cover:
- objectives and development provisions for siting, design, construction, operation, and decommissioning of energy infrastructure;
- development application requirements including supporting materials; and
- consistent standards and requirements to support high-quality decision-making across local governments.
The Draft Code addresses several wind farm planning Elements, including safety, noise, single house developments, shadow flicker, landscape and natural hazards. Each planning Element includes one or more objectives outlining the intended planning goals or aim for that Element. Compliance with the Code can be achieved through meeting either the Performance Outcome, which is a general development principle, or Acceptable Outcome, which is more specific and measurable, for that Element. Noise-sensitive uses generally are currently covered by the Planning and Development (Noise) Regulations 1997 (WA).
In determining whether a development application satisfies the relevant Element Objectives, the decision-maker will undertake a merit-based assessment. The decision-maker must be satisfied that the application meets the Code and Element Objectives and where there are potential adverse impacts of the project, they are addressed and mitigated. Examples of Performance and Acceptable Outcomes are provided throughout the Draft Code to ensure compliance with the Element Objectives. See below for an example.
- Element Objective: Wind turbines are designed and constructed to ensure structural integrity and operational safety over their lifecycle
- Acceptable Outcome: Wind turbines are designed and constructed in accordance with relevant Australian and international standards.
Additionally, the decision-maker must also be satisfied that the development will not create 'significant adverse impacts', and where potential impacts are identified, they should be addressed accordingly through avoidance, mitigation or rectification. The Draft Code does not currently define or provide an example of what constitutes a 'significant adverse impact'.
The Draft Guidelines that accompany the Draft Code provide guidance on the relevant materials, key reports and plans that may be required for relevant development applications. The Guidelines also provide support on preliminary community and stakeholder engagement by encouraging early and proportionate engagement and aligning with the Community Benefits Guideline, which explains how best-practice engagement informs community benefit arrangements and the required reports and plans. Preliminary engagement with community members, stakeholders and public authorities is encouraged prior to submitting a development application to identify potential issues and inform the project design and application.
In addition to the Draft Code, the Framework will include proposed amendments to the Planning and Development (Local Planning Schemes) Regulations 2015 (WA) and the Planning and Development (Significant Development) Regulations 2024 (WA) to support incorporation of the Code, new assessment requirements for noise-sensitive uses near wind farms, and classification of energy infrastructure as 'mandatory significant developments'.
The Code is intended to extend to solar farms, transmission systems and battery energy storage systems in the future. The Code will not apply to offshore wind farms located in Commonwealth waters and energy infrastructure classified as public works, where the public work is exempt from development approval under a local planning scheme.
Public consultations on the Code and Guidelines were open until 10 April 2026: Have Your Say, WA!. The WA Planning Commission and Minister for Planning will consider public submissions for preparation of the final documents over the following months. The Code is expected to be incorporated into local planning schemes in late 2026.
Insights
The Community Benefits Guidelines and Draft Code are specifically concerned with renewable projects in WA. Where projects are also expected to have an environmental impact, other recent regulatory reforms should be considered, namely the EPA's new Environmental Impact Assessment (EIA) Practice Guide and the Department of Water and Environmental Regulation's Priority Project Pathway. For renewable projects with strategic significance to the State, proponents should consider the State Development Act WA.
We discuss WA planning and environment reforms in our articles, "Environment and planning developments in Western Australia" and "WA's new State Development Act 2025 to streamline regulatory approval process for State significant development".
Other authors: Shayne Solin, Lawyer and Emmelyn Wu, Lawyer.
Want to know more?
- Environment and planning developments in Western Australia (14 May 2026)
- WA's new State Development Act 2025 to streamline regulatory approval process for State significant development (14 May 2026)
- New Community Benefit System means additional challenges for Queensland renewable energy projects (13 April 2026)
