Australia's voluntary developer rating scheme launches with first five scores

Australian Energy Infrastructure Commissioner Tony Mahar launched the Developer Rating Scheme (DRS) on Thursday. The voluntary framework is designed to assess renewable energy and transmission developers against seven specific criteria. These standards cover areas such as community engagement and governance, aiming to provide a structured evaluation of project proponents.

The scheme was developed in partnership with Equifax Australasia Credit Ratings.

While the scheme is voluntary, it provides a standardized method for comparing developers.

Origin and Context

The federal government committed to the Developer Rating Scheme 14 months ago. The initiative stems from a review commissioned by Federal Energy Minister Chris Bowen and conducted by former Commissioner Andrew Dyer. That review recommended the DRS specifically to address community distrust.

Initial Ratings and Reactions

The initial set of outcomes encompasses five developers: Iberdrola, Tilt Renewables, RWE, Stromlo Energy, and Mint Renewables. Within this group, three companies earned the top five-star score for community engagement, whereas the other two attained 4.5 stars.

Paul Simshauser, CEO of Iberdrola Australia, stated, "We are very proud to have achieved 5/5 stars for our community engagement." Anthony Fowler, CEO of Tilt Renewables, remarked, "It reflects our commitment to acting in good faith, dealing fairly with people and delivering on our commitments." Garth Heron, a director at Stromlo Energy, observed, "The rigorous assessment process provided valuable insights for our business."

Participation and Future Requirements

• 60 developers signed up to pilot the scheme last year.
• More than 20 additional companies are currently undergoing the rating process.
• Participation remains voluntary for general market activities.
• A Developer Rating Scheme score is mandatory for developers seeking Capacity Investment Scheme (CIS) support from the 11th tender.
• No timeline has been provided for DRS becoming a standard planning requirement.

Rating Methodology and Assessment Details

Within the DRS register, a five-star community engagement classification designates market leaders that surpass conventional standards by implementing robust benefit-sharing and durable governance structures. Per the website, such entities institute formal co-decision frameworks, guaranteeing that stakeholder input substantially influences the project from initial regional planning stages through to final decommissioning. Anthony Fowler, CEO of Tilt Renewables, observed that his firm’s five-star standing was derived from input provided by project landholders, adjacent residents, local communities, and First Nations collaborators. Paul Simshauser, CEO of Iberdrola Australia, remarked that his personnel engage with regional communities on a daily basis, asserting that their dedication to listening and collaboration is reflected in the results. Garth Heron, director at Stromlo Energy, characterized the company’s 4.5-star standing as “trustworthy,” urging all developers to join the initiative to bolster community trust while erecting new power facilities. Mahar indicated his anticipation that the DRS will evolve into a fresh industry standard, emphasizing that communities require access to these details and developers ought to be motivated to show their dedication to ethical practices.

What to watch

Australian Energy Infrastructure Commissioner Tony Mahar described the launch as "just the beginning," signaling that the current pilot phase is only the first step in a longer rollout.