Energy deja vu: Renewables companies must learn from the past

Renewable energy companies joined residents and government in Miles this month to discuss the next big wave of industry investment. Echoes of the past rang loudly for some attendees.

A coal seam gas well head in the Surat Basin, Queensland.

An overwhelming sense of deja vu pervaded Queensland’s first broad community forum on renewable energy in the Western Downs.

Government, companies and community came together to understand each other’s approach to a new industry with vast potential and associated challenges. Just as they did in 2008 in Chinchilla at the first Surat Basin Energy Conference where coal seam gas was then the focus.

In an echo from 16 years ago, the locals were firm in seeking answers centred on land use, community infrastructure and maximising local economic opportunities. Understandably, they were again quick to point out that regulation is catching up with speedy industry development.

Again there is bipartisan political support for an industry that is good for the economy and which generates an energy source that is critical to combating climate change. And as in the past, foreign investment is attracted to a first-world country with a strong rule of law and world-class energy resources that have long supported regional centres.

But the complexities of operating in a modern democracy are difficult to negotiate and becoming harder.

Opponents are often well-organised, well-funded and unbound by the facts. They seek out Davids to battle the Goliaths – disgruntled landholders and neighbours – or isolated operational incidents for media attention. These exemplars are then used by politicians for their own ends. Hey presto, your industry is a cause célèbre and your opponents have the momentum.

None of this makes life any easier when your project is seeking regulatory approvals. Not that it should matter, but it does matter.

The gas industry in Queensland has gone on to fulfil much of its promise but at a painful cost, caught on the hop by activists who quickly fill any information void. The reputational fallout has cruelled financial returns through delays and costly legislation designed to appease activists rather than address impacts. All this despite having the legal right to produce their product and, some would say, a moral right to do so.

Councils and landholders have long memories. They have learnt from the gas experience, are more capable and engaged, and expect more. In contrast, corporate memories have a habit of being short.

The gas experience should cause renewables companies to consider hard-won lessons. To name a few: tackle the big issues head-on and in a timely way; actively make your case to key stakeholders; quickly address misinformation; behave like a good neighbour; and avoid self-harm by adopting leading operational practices.

And do all this, as far as possible, in a co-ordinated and collaborative way. The community will see the sector as a collective and judge all companies by the behaviour of the worst performer.

Smart renewables companies already understand these dynamics. Even they will find it tough to maintain the significant time, energy and resources required to stay the course. But being on the “right side” of climate change will not be enough to stave off coal seam gas deja vu.

Paul Larter is Executive Director of corporate communications consultancy Three Plus, advises traditional and renewable energy companies and attended the 2008 and 2024 community events.