In an exclusive interview with ecogeneration, RELA discusses the company’s game-changing mission and the pressing need it addresses for the renewable energy industry.
The convergence of energy production and land use
As Australia’s first marketplace that exclusively brings landowners into the renewable energy system by connecting them with renewable energy developers, RELA is helping accelerate renewable projects.
As the renewable energy transition gathers momentum across Australia, a critical intersection has emerged – the convergence of energy production and land use. Rural lands are increasingly in demand for wind and solar farms, creating a new frontier where the interests of landowners, developers, and communities intersect. In this landscape, a pioneering company called RELA has stepped forward, establishing itself as an end-to-end marketplace for renewable energy land transactions.
Bridging the gap
Through its revolutionary approach, RELA aims to accelerate and optimise the renewable energy transition by fostering transparency, facilitating fair deals, and safeguarding the long-term interests of all stakeholders involved. At the helm of RELA is Chief Executive Officer Michael Katz. In an exclusive interview with ecogeneration, Katz has shed light on the company’s mission and the pressing need it addresses.
“This transition to renewable energy has created a new marketplace,” he said. “We identified about five years ago that there was no intermediation of that new intersection between energy and land, which is crucial for the future of our economy, environment, and energy and food production. But it was basically ignored from the landowners’ perspective.”
According to Katz, RELA’s inception was driven by the recognition that while developers were well-resourced and experienced, landowners – often farmers and rural communities – lacked the specialised support and services needed to navigate this complex landscape. By bridging this gap, RELA seeks to empower landowners and create an equitable playing field for all parties involved.
At the core of RELA’s model is a commitment to fostering transparency and competition through structured, market-driven processes.
“We don’t set the market or dictate terms,” Katz said. “What we do is provide a balanced space for these interactions to take place through a transparent, competitive process.”
This approach ensures that landowners receive the best deal available in the market, rather than simply accepting the first offer that comes their way. Simultaneously, it levels the playing field for developers, allowing reputable companies with competitive offerings to secure the right land parcels through a fair and structured decision-making framework.
One of RELA’s key innovations is its ability to facilitate upfront lease payments for landowners through partnerships with institutional investors. This groundbreaking solution addresses a common challenge – the desire to unlock the full value of their land without having to sell it outright.
“Through the deals that we have facilitated, we are looking at over $200 million in lease value going back into the regions through our upfront lease prepayment product,” Katz said, highlighting the tangible impact RELA has had on rural communities.
By bringing forward the lease payments into a lump sum, landowners gain immediate access to substantial capital, which can be invested in business growth, diversification, or succession planning.
Make it fair for everyone
RELA’s role extends far beyond mere financial transactions. The company is actively working to promote the coexistence of agricultural activities and renewable energy projects on the same land – a critical aspect of achieving social license and community acceptance.
“We believe the farm plan has to be held as an equal guide to the project plan and the establishment of the project,” Katz said.
RELA facilitates open dialogue and problem-solving between landowners and developers, ensuring that landowners’ objectives and concerns – from biosecurity to aerial cropping – are incorporated into project design. This collaborative approach not only safeguards agricultural production but also fosters a harmonious coexistence of food and energy security, a delicate balance that is imperative for the long-term sustainability of both industries. The company’s unwavering commitment to education and knowledge-sharing is paramount.
“It’s two-way education,” Katz said. “We share with the landowners the information they need to navigate the transition, and equally, the landowners educate us about their broader land and business objectives.”
This mutual learning extends beyond RELA and landowners, as developers also gain deeper insights into the intricate details of farming operations, fostering a deeper understanding and appreciation for the complexities involved in integrating these industries. As the renewable energy transition continues to evolve, RELA’s role in facilitating these complex interactions is becoming increasingly crucial. The company has developed a platform that allows developers to holistically view and evaluate land opportunities, enabling them to strategically match their resources and optimise project scale and viability. Katz said the importance of maintaining objectivity and avoiding conflicts of interest is a challenge inherent in working with both landowners and developers.
RELA’s revenue model, tied to project success rather than upfront fees, aligns its incentives with delivering the best outcomes for all parties involved. Additionally, landowners retain independent legal representation, further safeguarding their interests.
“Our clients are the landowners,” Katz said.
“We have no economic ties with any specific developers. This ensures that landowners know when they work with us, they are our sole focus.”
RELA’s commitment to fairness and equitability is further reflected in its approach to fostering transparency and competition in the renewable energy land market and industry.
“By facilitating a transparent, competitive business process within a structured decision-making framework, we’ve created an inherently transparent and fair marketplace,” Katz said.
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