Transmission line developers forced to consult landholders earlier

The draft proposal comes in response to a sharp increase in land use conflicts in regional and agricultural communities, where 28,000km of transmission lines will be built to connect renewable energy projects to the grid.

The changes will aim to give landholders and communities better guidance about their rights and entitlements, prompt proponents to better engage, introduce reforms earlier and ensure complaints are properly handled.

Climate Change and Energy Minister Chris Bowen said Australia had needed much better community engagement around energy infrastructure for years.

"The Albanese government is making overdue improvements to ensure genuine consultation with local communities and help them reap the rewards of renewables including cleaner, cheaper renewable energy," Mr Bowen said.

"The opposition spent 10 years failing to make the necessary reforms to improve community engagement in a rapidly changing energy market."

By engaging with communities early on in the development process, local knowledge and positive community outcomes can be appropriately factored into route selection and planning, the Energy Minister said.

The Australian Energy Market Commission will consult on the draft rule until 28 September.

AEMC Chair Anna Collyer said as Australia's traditional energy assets are retired the physical build of transmission infrastructure to deliver power from renewable generation to consumers is having flow-on effects for communities.

"Social licence is a term that is used a lot when we talk about infrastructure delivery, but behind the term are individuals and communities who deserve timely access to transparent information and clarity about their rights," Ms Collyer said.

The federal government has also announced a review, led by the Australian Energy Infrastructure Commissioner, to enhance community support and ensure that electricity transmission and renewable energy developments deliver for communities, landholders and traditional owners.

The issue has become particularly heated in Victoria, where farmers are protesting the $3.3-billion VNI West interconnector project. The identification of routes and discussing landholder concerns, the two big objections of Victorian farmers, will be a key focus of the review.