Hunter-based Nationals senator Ross Cadell has called for greater regulation around obtaining social licence for renewable energy projects.
It follows complaints from coastal and farming communities about the adverse impacts of new renewable energy and transmission projects.
"Without tighter regulation and harsher penalties, energy companies will continue to rip the souls out of regional communities under the guise of Labor's race to renewables," Cadell said.
"We find ourselves in this position because proponents continue to take advantage of the lack of regulation by conducting community consultation simply as a tick box activity."
Senator Cadell has called for the implementation of initiatives that protect communities the clean energy transition does not come at the cost of regional Australia.
"The Dyer Report told us that just 8 per cent of people surveyed were satisfied with the level of engagement from project developers. The same report proposed ways to improve engagement. Despite this, the Labor Government seem to be stagnant on action," he said.
"For the past 15-months I have been calling for an inquiry into the impact of Labor's plan to 'Rewire the Nation'. On every occasion, Labor, The Greens, and Independent Senator David Pocock have voted against simply holding an inquiry."
A group fighting plans to develop offshore wind off the Hunter coast has challenged Energy Minister Chris Bowen to reopen community consultation for the project after a review highlighted the need for the government to improve its engagement processes for renewable energy projects.
Improved community consultation, better complaint handling and a rating system for developers are among nine recommendations of a renewable energy review put forward by the Australian Energy Infrastructure Commissioner, released in early February.
The government has accepted the recommendations in principle.
It said 300 people attended seven community consultation sessions in the Hunter and Central Coast for the proposed offshore wind project last year.