Governments are making big investments in clean energy precincts, which can speed net zero progress and boost green exports. But progress is being hindered by complex, fragmented and outdated planning, according to CEDA.

The economic think tank has released a new report urging governments to make better, more coordinated decisions when backing clean energy precincts, to avoid wasting money and to make sure funding is targeted at the right projects.

Australia has opportunities for a number large, industrial scale clean energy hubs across all states and the Northern Territory, the report co-authored by senior CEDA economist Andrew Barker says.

“At the same time, complex, fragmented and in some cases outdated planning and permitting processes are delaying progress, creating a barrier to development without delivering better environmental or community outcomes” he writes in Clean energy precincts: How to seize the green export opportunity.

The report provides a framework for prioritising government support for clean energy precincts, removing barriers to development, engaging communities and ensuring the best projects are being enabled.

Bringing together stakeholders to foster innovation

Clean energy precincts are based on the premise of clustering together manufacturers, researchers and industrial infrastructure together with the aim of catalysing investment, jobs, innovation and exports, particularly products like clean energy and green hydrogen, iron, aluminium or ammonia.

They also offer a way of supporting communities and jobs in regions that are transitioning away from fossil-fuel-related industries.

The report illustrates the benefits with a number of case studies, including the Tonsley Innovation District on the former Mitsubishi Motors production facility in SA, The Western Sydney’s Moorebank Intermodal Project, and the Port of Newcastle which is proposing to regenerate 220 hectares of industrial land into a dedicated clean energy precinct.

Fragmented funding

However, funding for clean energy precincts is fragmented, CEDA says.

The report says federal and state government are already providing  $8.3 billion in funding for hydrogen development alone – much of which will support precincts – but this is split between more than 30 federal and 50 state and territory programs.

“The need to engage with many different agencies on complex precinct developments slows progress and makes it hard for proponents to know what each agency is responsible for,” CEDA says.

It also stresses the need for ‘early, deep and active’ consultation to ensure local communities are on board, and that developments are aligned with local strengths.

The report’s recommendations include:  

• A consistent framework for clean energy precincts
• Ensuring all clean energy precinct proposals have a clearly articulated purpose as well as measurable objectives in order to gain financial support
• Early engagement with local communities
• Reform of planning and permitting systems with single points of contact or lead agencies for permitting of precincts.