First Nations organisations and industry have learned what is needed to ensure renewable energy projects deliver better outcomes for First Nations peoples. Will Australia’s new Electricity Services Entry Mechanism reinforce this trend?

The First Nations Clean Energy Network has produced a briefing paper exploring design issues that must be included in the new Electricity Services Entry Mechanism (ESEM).

Since its introduction, the Capacity Investment Scheme (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.

The CIS has demonstrated government market design can influence investment behaviour.

As governments prepare to transition beyond the CIS to the longer term framework – the ESEM presents an opportunity to build on CIS progress.

The ESEM represents a once-in-a-generation opportunity to embed First Nations participation, partnership and ownership into Australia's enduring electricity market framework.

It should continue the direction established through the CIS: stronger First Nations participation, stronger accountability, and greater opportunities for ownership and economic development.

The policy choices made now will shape how the benefits of the clean energy transition are shared for decades to come. 

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.

Read the briefing paper