Key steps in developing a community energy project

Donna Luckman
Donna Luckman • 13 May 2020
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Author: Alicia Webb

Sometimes the hardest thing about a large project can be knowing where to start, what questions to ask and what you don't yet know. This roadmap will not suit every project, however it should provide a basic understanding of some of the major steps and some suggestions for when to commence working on them.

Main topics covered in this article include:

  • Form a group and start meeting regularly
  • Read and research
  • Define objectives and create a vision
  • Start defining your project
  • Become an incorporated association
  • Investigate the planning authority
  • Find funding for project development
  • Hire a project officer
  • Create an engagement strategy and associated tools
  • Engage with the planning authority
  • Engage with the community and build support
  • Pre-feasibility studies to define your project scale and site
  • Feasibility studies
  • The planning approval process
  • Planning approval
  • Determine the ownership structure and raise funds
  • Build the project and sell the energy

Form a group and start meeting regularly

At the very beginning of the process you will need a small group of keen proponents who will share ideas, decide on the direction of the project and engage with the community. These people will need to have some time to dedicate to project work.

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Read and research

There's plenty of information on the web about various types of renewable energy technologies and the steps involved in building a project. If you're looking for ideas, this library is a great place to start learning the basics.

Define objectives and create a vision

There are lots of reasons for building community energy projects. Your group's objectives will inform decisions about the best project type and scale, so it's important to be clear on what you're trying to achieve.

Establishing your vision for the project will become a useful tool in future communications.

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Start defining your project

Once you know what you're trying to achieve by building a community energy project, it's time to decide what type of project it will be. For some groups, this step will be self evident and based on technical constraints, group objectives, or available funds. For others, this will be a very open question requiring lots of investigations.

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Document your concept

It's important to go through the exercise of documenting your concept. This will ensure everyone in your group understands and agrees on what you are trying to achieve, why, and how you will go about this.

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Become an incorporated association

Establishing an incorporated association is a great way to formalise your community group's aim and provides some legal protection to it's members. It is a good structure to use during the earlier phase when your primary aim is to get as many members as possible with a minimum of demands on those joining. Membership fees are a great way to get members to 'sign on' to support the project vision.

Creating an incorporated association is inexpensive however there is a reasonable amount of administration involved in meeting the requirements to apply. There is lots of information available online about becoming incorporated in each Australian state. For more information see the article on

Investigate the planning authority

The planning authority for community energy projects will vary from state to state, and may depend on the size of your project. In Victoria for example the planning authority is the local council.

Once you understand what council or other governing department will be giving your project the yes or no, you can investigate their planning requirements. This will help you to understand the various studies you will need to undertake regarding your project and what groups you will need to liaise with as you move through the development process.

It's also important to form an understanding of the planning authority's priorities and strategies for the future of their region. Ensuring that you understand their objectives and aligning your project outcomes closely with these objectives will give you the best possible chance of receiving development approval, down the line.

Find funding for project development

Developing a community energy project involves commissioning feasibility studies, resource measurement, expert environmental impact assessments and plenty of other expert input. Depending on how your membership drive has gone, you will need to source some funding for this investigation phase.

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Hire a project officer

Community energy projects are a lot of work and they tend to move very slowly when driven only by volunteers who have jobs, families, and other competing interests. When your group is ready to get serious, hiring a part-time person to work on the project will make an enormous difference to progress.

Create an engagement strategy and associated tools

A supportive community is one of the most crucial parts of any community energy project. Building support is a long and involved process that must run in parallel to all project development activities. Done well, the benefits of an engaged and supportive community will far outweigh the time and effort that it takes to build the support. An engagement strategy describes who you will engage with, how you will engage with them and why.

Embark has written an engagement strategy template which you can edit and personalise for your project and your community.

Engage with the planning authority

The correct time to engage with your local planning authority will depend on your community. If you believe that they are sympathetic to community energy projects then it's best to arrange a meeting right at the beginning of your community engagement phase.

If you suspect that your local planning authority will be resistant to your project proposal then it can be best to gather a substantial level of community support before bringing your proposal to them. That way you can demonstrate that the project will be popular in the area at the same time that you describe the many benefits and how they align with the local planning authority's strategies for the region.

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Engage with the community and build support

This step involves actually undertaking the numerous tasks outlined in your strategy. It is useful to determine a goal for membership numbers and also your mailing list. Get ready to hit the street and start talking to people.

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Pre-feasibility studies to define your project scale and site

Now that you have a vision and a supportive community, it's time to define some of the technical aspects of your project like where it will go and how big it will be. Getting some pre-feasibility work done will help you to work out the details.

Part of the pre-feasibility phase will be looking at the economics of your project, so it's worth setting up a basic financial model.

Once you have chosen a site, you'll need to give careful consideration to how you communicate that to your community and supporters.

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Feasibility studies

Feasibility studies essentially involve looking in more detail at all aspects of your project to check that it makes technical and financial sense. Although there are some articles and tools on this wiki, they will continue to develop as more community projects are built.

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The planning approval process

This phase occurs once you are satisfied of the feasibility of your project. Most planning authorities will require many technical investigations to accompany your development application. It's best to speak to your local authority to ascertain exactly which studies you will need to commission from experts.

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Planning approval

After you have applied for planning permission for your project you may receive requests from the authority for futher information. Your application may be contested by protest groups and you should be prepared to demonstrate the community support you have spent so much time building up.

One of the biggest risks in any infrastructure project is that you will go through a very long development process and the project will be rejected by the planning authority. If you are awarded planning approval this can be considered the successful achievement of a major milestone.

Now you can actually get down to the work of building a community energy project.

Determine the ownership structure and raise funds

Once you have planning approval it's time to set up a formal structure in order to own and operate the project. You'll need to learn about the ownership structures available in your state or territory which will usually include a limited company and a co-operative.

Next you will prepare a product disclosure statement or similar document and start marketing your project to potential investors. While this process is going on, you may need to start looking for supplementary funding from banks or government grants.

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Build the project and sell the energy

Now it's time to actually build your project. This will typically involve issuing a request for tender to various technology suppliers and construction companies. Selling your energy will involve negotiations with various energy retailing companies.