Lessons from big energy transitions: Transforming stakeholder engagement for water sector success

Energy transition lessons for water

Australia faces unprecedented challenges in water and energy management. Both sectors are tasked with implementing large-scale infrastructure projects that have transformative impacts on communities and the environment. In the energy sector, for instance, new transmission infrastructure is key to unlocking Australia’s pathway to renewables and a net-zero future. By connecting clean energy projects to the grid, it plays a crucial role in tackling climate change and securing a more sustainable energy system. From transmission towers to pipelines, these projects come with complexities that can either drive progress or create roadblocks if stakeholders are not effectively engaged. 

Both energy and water are essential services, deeply embedded in everyday life. Whether it’s powering homes or ensuring reliable access to clean water, disruptions or delays can ripple across communities. Stakeholder engagement plays a pivotal role in navigating the potential pitfalls of these projects.

The energy transition has already provided valuable lessons in managing complex stakeholder landscapes, overcoming resistance, and building trust. As the water sector embarks on its own transformative journey – from addressing water scarcity to implementing recycled water and desalination technologies – there’s a unique opportunity to apply these learnings.

Drawing on RPS’ experience across both industries, with insights from projects like Marinus Link, HumeLink, and Spinifex Offshore Wind Farm, we’ve developed a six-step roadmap for effective stakeholder engagement in the water sector. 

Why stakeholder engagement matters

Large-scale infrastructure projects often meet resistance when stakeholders feel excluded or uninformed. Whether it’s a new pipeline, a desalination plant, or a recycled water initiative, these projects inevitably impact local communities. Early engagement can address concerns, foster trust, and build acceptance before challenges escalate into opposition.

What we know is that people will always be protective of where they live – and of their local communities. This is especially true in rural areas, or if a new infrastructure is likely to be disruptive, have a negative visual effect, or encumber how landowners can use their own property. For instance, if stakeholders see a transmission tower on the horizon every time they step outside, the climate change argument may not be persuasive enough. For many, it’s hard to think that far ahead–they’re focussed on what’s immediately in front of them. 

We also know from experience that people will have more concerns and questions if they are likely to see the cost of a project reflected in their bills – for instance, when paying for their water utilities. For example, if there are improvements that need to be made to a dam, but it would result in higher rates, the question becomes, “will the community and stakeholders be willing to pay for that?” It’s equally important to explain possible cost overruns–why they happen, whether due to supply chain issues, or rising raw material costs. While stakeholders may not agree with the cost rises, they will at least have the full picture and a clear explanation. 

Just as we’ve seen in the energy sector, where years of underinvestment left ageing infrastructure struggling to support the transition to renewables, delaying action can come at a much greater cost. The alternative to investing now is facing system failures in the future – whether that’s water shortages, failing dams, or networks that can’t meet demand. Educating stakeholders on the cost of inaction is just as important as explaining the cost of investment, as the long-term consequences could be far more expensive and disruptive.

A six-step guide to transforming stakeholder engagement in the water sector

Drawing from lessons in the energy sector, here’s how the water sector can build a robust stakeholder engagement strategy:

1. Map the stakeholder landscape

Every successful engagement strategy begins with a clear understanding of who the stakeholders are and how they influence or are affected by the project. 

In the energy sector, RPS specialists often begin with desktop research to identify key stakeholders–the foundation for effective engagement. The team pores over census data, social media activity, and community group pages. Through this research, we get a picture of what people are saying, and what concerns are coming up. 

If a project is very sensitive, we’re also likely to run independent focus groups in partnership with Ipsos to get an understanding of community sentiment – this gives us a sense of some of the issues we might come up against, and some of the stakeholders we might need to target to mitigate risks. It’s essentially a temperature check to gauge community appetite for a potential project.  

Stakeholder mapping also involves tools like the International Association of Public Participation (IAP2) framework to assess stakeholders based on their interest and influence. IAP2 is built around the IAP2 Spectrum of Public Participation, which outlines five levels of engagement; Inform, Consult, Involve, Collaborate, and Empower. Each level reflects increasing degrees of public influence in decision-making. This approach ensures that key groups – from the economic development team within councils to Indigenous communities, local businesses, and environmental organisations – are identified and prioritised early. 

For example, the Spinifex Offshore Wind Farm in regional Victoria undertook comprehensive stakeholder mapping before its public announcement. This included focus groups to gauge community sentiment about renewable energy and identify historical grievances with past projects. The insights we gathered told us that stakeholders were concerned about whether the project would ever deliver any benefits. This helped shape a narrative that emphasised local job creation and realistic timelines, building trust and credibility. 

For water projects, mapping should also account for cultural and regional nuances. Urban areas may require engagement strategies tailored to culturally and linguistically diverse communities (CALD), while rural areas often benefit from face-to-face, relationship-driven interactions. 

Another key factor is determining which communication methods will best engage stakeholders. That requires mapping out whether engagement would be more effective through a community leader or a trusted source, instead of a website or social media. For instance, older people in rural areas tend to prefer face-to-face engagement, don’t often use the internet, or don’t have internet stability or connectivity. These differences highlight the importance of customising stakeholder engagement approaches to fit the context.

Key actions for water projects:

• Use frameworks like IAP2 to categorise stakeholders by influence and interest.

• Engage stakeholders early, as their buy-in can make or break project timelines.

• Map local values as you engage.

• Tailor outreach to regional and cultural contexts.

• Tailor communication methods and channels to audience needs – and make information accessible.  

2. Craft a shared vision

Ensuring alignment among diverse stakeholders requires a shared vision that balances the needs of the project with the aspirations and concerns of the community. However, full alignment is rare, especially when interests conflict. That’s why transparency and clarity throughout the engagement process are essential.   

Clear communication is key to better outcomes. Stakeholders need to know which aspects of the project are negotiable and where flexibility exists. Co-design sessions and workshops are great ways to ensure they feel heard and involved in the decision-making process. Just as important is closing the loop—telling stakeholders, "Here’s the information you gave us, this is how we used it, and here’s how your input shaped the project." That way, people feel like they have skin in the game.

During  the Marinus Link project, stakeholder workshops played a key role in improving trust and buy-in. Local landholders and councils were also engaged to address their concerns about easements, land use, and to discuss project benefits.  Their feedback informed critical decisions about the route adjustments project design and benefits. By closing the feedback loop – showing stakeholders how their input influenced the project – the engagement team successfully built stronger relationships. 

In comparison, during the development of one of Australia’s largest desalination plants, significant backtracking was required, forcing developers to revisit the community and revise negotiable aspects of the project. Today, the plant is surrounded by a walking trail and blends into the natural environment with a green roof—features added only after community backlash. Had these negotiable elements been identified early, much of the opposition could have been mitigated, securing stakeholder buy-in from the outset. 

3. Build collaborative partnerships

Strong partnerships are essential for navigating the complexities of stakeholder engagement.

The energy sector has increasingly embraced partnerships with First Nations peoples, integrating traditional knowledge into project planning. For example, projects are working closely with Traditional Owner groups to understand how Sea Country knowledge can enhance environmental assessments—going beyond scientific study to consider cultural implications. This approach has the potential to strengthen relationships with Traditional Owners. The same level of engagement is just as crucial when it comes to water use and water rights.

Equally, Indigenous Australians are requesting partnership models that serve the economic interests of Aboriginal and Torres Strait Islander peoples, through skills development, local jobs, and long-term financial benefits. The water sector can build on these practices by forming long-term relationships with Traditional Owners and exploring opportunities to align project goals with community aspirations.

In most energy projects, budgets are allocated for community benefits—such as building capability with local suppliers—and these are built into the program from the start. However, as Communications and Engagement Director, Anissa Baiquni points out, “While introducing a community benefits scheme is always a good thing, designing one isn’t one-size-fits-all.” This is a key lesson the water sector can take on board. 

Another lesson from the energy sector is that some stakeholders will always object to a project—no matter what. This is where community advocates play a crucial role—think of them as change champions. Having a local representative is a major asset in stakeholder engagement, leveraging personal connections and a deep understanding of community challenges and aspirations. Projects can make all the promises they want, but people trust their neighbours and local leaders more.

Building relationships with trusted voices in the community is essential. For instance, RPS’ social value team co-designed the community benefit sharing framework for EnergyCo and Marinus Link, setting priorities and objectives through a collaborative process, with criteria developed alongside the community.   

Local councils are another key partner, often playing an influential role in project development. Strong council buy-in is crucial to avoiding resistance. Councils also provide a valuable platform for building advocacy, fostering relationships, and establishing a strong community presence.

One thing the energy sector excels at is forming productive partnerships and adapting quickly when trends or circumstances change.

4. Address concerns and overcome resistance

Resistance to infrastructure projects is inevitable, but how it’s managed determines the trajectory of a project. Early engagement, combined with regular and transparent communication, helps mitigate concerns before they escalate.

The HumeLink project, illustrates this challenge. Many stakeholders, particularly rural landholders, were strongly opposed to the project due to the visual impact of transmission towers. Despite understanding the importance of renewable energy, community members demanded the lines be placed underground. While technical and cost constraints made this unfeasible, ongoing communication helped stakeholders understand why.

Storytelling is a powerful tool for shifting perceptions. Demystifying concepts like purified recycled water or explaining how climate change affects water security can make complex issues more relatable. For example, during floods, communities sometimes question the need for desalination plants because dams appear full—without realising the temporary nature of those conditions. Accessible, community-driven narratives help stakeholders connect the dots between immediate local impacts and long-term benefits. The key to effective storytelling is aligning it with RPS’ mantra: making complex easy.

Partner with a team that knows water

The water sector has a significant opportunity to transform its approach to stakeholder engagement by learning from the energy sector’s successes and challenges. To achieve this, we recommend focusing on three priorities:

• Engage early and transparently: Resistance often stems from stakeholders feeling excluded from conversations.

• Be flexible and responsive: Adapting to changing priorities – whether driven by community needs or external factors – is essential for building trust.

• Focus on long-term community benefits: Projects that deliver tangible outcomes for local communities build goodwill and foster enduring relationships.

At RPS, our expertise spans both sectors, combining a deep understanding of stakeholder engagement with practical experience in navigating complex infrastructure challenges.

By applying lessons from energy transitions to water projects, we can help ensure that the water sector is equipped to meet the challenges of the future.

The journey toward sustainable water infrastructure may be complex, but with the right strategies—and RPS’ ability to turn complexity into clear messages—it’s a goal we can achieve together.