Pilot to help First Nations share in clean energy transition
We’re taking new steps to help First Nations communities benefit from Australia’s clean energy future.
Under the Capacity Investment Scheme (CIS), a new pilot will support First Nations communities to co-own renewable energy projects and to share in the income they generate.
This initiative aims to deliver stronger, long-term economic and social outcomes for Traditional Owners and First Nations communities.
Since the first CIS tender, developers have been encouraged to work with First Nations communities. This has included:
- equity ownership
- revenue-sharing arrangements
- energy offtake agreements.
Many successful projects have done this, however, feedback showed that more targeted action was needed so more communities can participate in these clean energy projects.
In response, a new First Nations Set Aside pilot has been introduced in CIS Tenders 9 and 10. The pilot will be reviewed and improvements may be considered for future tender rounds.
To qualify, proponents must commit with First Nations partners to 1 of the following:
- at least five per cent equity
- revenue sharing equal to five per cent equity
- a mix of equity and revenue sharing equal to five per cent equity.
The model has been developed in consultation with stakeholders across:
- government agencies
- industry
- finance
- peak bodies
- First Nations organisations.
Proponents can nominate their project for the Set Aside. Projects that do not qualify will be assessed under the standard tender process.
Stakeholders have welcomed the pilot as a positive step towards helping First Nations communities participate in Australia’s clean energy future.
