Regional Australians would be able to invest in and potentially profit from local renewable projects if a bill tabled by Helen Haines is passed.
Dr Haines describes her proposal for a new Australian Local Power Agency on Monday as 'an ambition plan to drive a renewables-driven economic boom'.
Under the plan developers of renewable energy projects would be required to offer 20 per cent of the project's value for residents to invest in.
"In Germany, farmers own 10 per cent of all renewable energy, and everyday people own another 30 per cent," Dr Haines said.
"If we had a system like that in Australia, that would be billions of dollars flowing straight into the pockets of people in regional Australia every year."
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Dr Haines claims although many renewables are being built in regional areas, communities were not to see the full economic benefits of the investment.
The Indi MP also wants community-owned projects to be included in the government's planned underwriting scheme, which aims to encourage companies to build new power supplies.
"Last year, Australia, installed a record amount of renewable energy, the equivalent of four Hazelwood power stations," she said.
"Yet we have two agencies dedicated to accelerating that investment, but no policies in place to make sure that investment translates into economic benefits for regional communities.
"We need to capture that investment boom - that is already raining down around us - to create a local renewables workforce, build up hundreds of small businesses that service this industry, and make sure that locals get to invest in these projects too."
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