Joint Clean Energy Council (CEC) and Queensland Renewable Energy Council (QREC) Media Release

In an Australian first, the Clean Energy Council (CEC), together with the Queensland Renewable Energy Council (QREC), have today announced a national approach to renewable energy project decommissioning and financial security,  offering farmers greater certainty while maintaining project viability.

The industry model aims to ensure landholders, regional communities and governments are protected in the unlikely event that a project fails to meet its end-of-life obligations. Similar models have been introduced In the resources industry to reduce the incidence of abandoned mines and unfunded rehabilitation.

Under the model, to be put forward to governments and communities, financial security is ring-fenced via an approved instrument such as a bank guarantee, cash in escrow, surety bond or other vehicle.  Obligations and liabilities transfer with project ownership, maintaining continuity of responsibility throughout the asset’s life cycle.  In other words, if a proponent defaults, the bond pays.

Clean Energy Council National Spokesman, Chris O’Keefe, said the framework, developed in partnership with industry, enhances existing development approval requirements and provides a clear approach to supporting communities through the nation’s energy transition, helping ensure continued investment in renewable energy infrastructure without adding upward pressure on electricity prices.

“Communities have told us they want assurance that landholders won’t be left carrying the cost of removing wind and solar infrastructure at the end of a project’s life — and we’ve listened,” Mr O’Keefe said.

“This framework provides those protections while keeping projects viable and investment-friendly to keep powering homes, economies and jobs.

“The risk of abandonment is extremely low. Renewable energy projects have a strong track record of meeting their end-of-life obligations – in-fact, there’s never been an abandoned wind or solar farm in Australia. However, there are around 80,000 inactive, unrehabilitated mine sites – this framework helps prevent that legacy and adds an extra layer of protection to ensure landholders and communities are safeguarded.

“Large-scale wind and solar projects typically last 25-30 years. If repowering isn’t an option, the proponent is responsible for site restoration  – a commitment generally built into long-term contracts upfront.

“This proposal reinforces those obligations by requiring funds to be set aside at appropriate stages of a project’s life. The objective is to avoid tying up capital early, ensuring projects are still delivered to provide the electricity Australia needs, while giving landholders the financial assurances they require,” he said.

Katie-Anne Mulder, QREC CEO said: “Landholders and communities have told us they want certainty around end-of-life responsibilities, and this position provides a clear and consistent path forward. We’ve been working closely with industry over the past year to make sure expectations are practical, fair, and easy for landholders to understand.”

“With most projects still a decade or more from reaching the end of their operational life, we have time to get this right. By engaging early with communities and governments, we can ensure landowners never face unexpected costs, while supporting ongoing investment in renewable energy across Queensland,” she said.

The two-stage proposal involves:

  • A pre-approval commitment. At the development approval stage a signed Decommissioning Commitment Statement affirms responsibility for decommissioning, and an indicative Financial Security Plan, clearly outlines cost-estimates, a financial security mechanism, calculation method and custodian arrangements; and
  • Phased financial contributions. Securities accrue progressively over the operational life of an asset, rather than requiring large upfront payments. This staged mechanism aligns contributions with revenue generation and asset maturity, supporting project viability and enabling reinvestment in innovation and jobs. An independent cost estimate established at the final investment decision (FID) forms the basis for calculating these securities. Periodic reviews and indexation ensure the security remains adequate and reflects actual market and inflationary movements, maintaining financial resilience in the unlikely event of default.

“This is just the beginning of a broader national conversation. By proactively engaging with industry we hope to foster further collaboration, as we continue to consult and work with governments and communities, to further advance a leading practice standard for decommissioning Australia’s future energy assets,” Mr O’Keefe said.

Click here to view the Framework

About the Clean Energy Council:

Established in 2007, the Clean Energy Council is the largest peak body representing the clean energy industry in Australia. It advocates for and works with Australia’s leading large-scale and small-scale renewable energy and storage companies, driving change, raising standards and influencing policy to help accelerate Australia’s transition to a clean energy future. More information at cleanenergycouncil.org.au.

About QREC (Queensland Renewable Energy Council):

As Queensland’s only state-based renewable energy peak industry body, the Queensland Renewable Energy Council (QREC) represents stakeholders across solar, wind, pumped hydro, electricity transmission and battery storage. QREC collaborates with industry, communities, and all levels of government to drive the growth of Queensland’s renewable energy sector.
www.qrec.org.au.