The Capacity Investment Scheme (CIS) has demonstrated government market design can influence investment behaviour.
Since its introduction, the CIS – Australia’s massive renewable energy underwriting program encouraging investment in new generation and storage – has progressively strengthened incentives for First Nations engagement, participation and ownership.
Through successive competitive tenders, developers have been incentivised through scheme design to invest in stronger partnerships and more ambitious First Nations outcomes.
In turn, First Nations organisations and industry have learned what is needed to ensure renewable energy projects deliver better outcomes for First Nations peoples.
As governments prepare to transition beyond the CIS to the longer term framework – the Electricity Services Entry Mechanism (ESEM) presents an opportunity to build on CIS progress.
Currently being developed, the detailed ESEM implementation will help determine whether Australia's next generation of electricity market reforms supports the vision set out in Australia’s First Nations Clean Energy Strategy 2024-30, or whether momentum established through the CIS is lost.
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