The Capacity Investment Scheme has the potential to benefit First Nations communities through its tender rules, and an upcoming First Nations revenue and equity set aside is an additional opportunity for First Nations communities to benefit. 

A First Nations Equity and Revenue Sharing Set Aside will be included in the next tender offering through the Federal government’s Capacity Investment Scheme.

The Capacity Investment Scheme (CIS) is a government investment of $70 billion in renewable energy projects over four years to assist in meeting the Federal government’s renewable energy targets.

Significantly, the Capacity Investment Scheme is designed to deliver mutually beneficial outcomes for First Nations groups, and also for proponents, by reducing risk and increasing shareholder value which can be gained through First Nations engagement, partnership and ownership of renewable energy projects.

First Nations peoples are important partners in the clean energy transition. The Australian Government is embedding strong social licence policy expectations on proponents who receive funding support. This is to deliver positive social and economic outcomes from Capacity Investment Scheme supported projects. (Australian government)

There have been 8 tenders offered since the Capacity Investment Scheme began in 2023, with 68 renewable energy projects already awarded for locations across Australia to-date.

Projects awarded under the Capacity Investment Scheme must adhere to strict First Nations outcomes and community consultation requirements.

In all tender contracts, the proponent must demonstrate and ensure strong local First Nations engagement with First Nations people, and also groups potentially impacted. 

In some tender contracts additional 'merit criteria' may include First Nations social and economic benefits such as: ownership, revenue sharing, partnering, employment and funding for sub-contracting of First Nations businesses, First Nations equity and/or revenue sharing agreements, the upholding First Nations legal protections, and contractually binding social licence commitments.

In the upcoming Tender 9, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) are including a First Nations Equity and Revenue Sharing Set Aside.

To qualify for the First Nations Equity and Revenue Sharing Set Aside, proponents must show a commitment with First Nations partners to:

💛 at least 5% equity, or

🤎 revenue sharing equivalent to 5% equity, or

🩵 a combination arrangement equivalent to 5% equity.

First Nations have the opportunity to lead community engagement and negotiations with proponents that have been awarded projects through the Capacity Investment Scheme.

Review our map to see if a Capacity Investment Scheme project has been awarded in your area

• Which Tender was the project awarded under? (eg. Tender 1, Tender 2, etc.)

• What are the First Nations merit criteria for that tender? (see above)

• Click on the project in the map to learn more about it, including reading the company’s commitments outlined in their tender document (if publicly available)

• What have proponents said they will do to meet the First Nations merit criteria? 

• Cross-check First Nations benefits that proponents in all projects have put forward 

Learn about the companies involved

• Who are they? Who are their bosses?

• Where has the company built other renewable energy projects?

• Is the company known for being a good operator practicing social licence?

Talk to your local community or group about the project and the First Nations merit criteria that the proponent must meet 

• Agree on community protocols for engagement

• Agree on community aspirations and expectations

• Discuss the required merit criteria the proponent must meet, and review whether there is alignment with your group's aspirations and expectations

• Find out whether project proponents are meeting with Traditional Owners and/or representatives:

  • to ensure engagement is occurring

  • site selection is undertaken in collaboration to minimise or remove impacts to culturally significant areas

  • First Nations outcomes through the specific merit criteria are being co-designed with First Nations groups

  • First Nations groups are happy with the company promises/actions around the merit criteria

  • action is being taken

If the proponent has yet to engage (as they all must do) 

• Work out a process to begin your group’s engagement with the proponent, to include bringing your community’s aspirations to the table (read our Clean Energy Negotiations Guide for First Nations)

• Contact the proponent (the company) involved

• If needed, provide the proponent with a copy of our Best Practice Principles for Clean Energy Projects and Leading Practice Principles: First Nations and Renewable Energy Projects and direct them towards our Building Capacity of Proponents toolkit

• If you are in Queensland, speak with your Local Government Authority (LGA) as with new planning reform changes, any community benefit agreement needs to be signed off by the LGA

• In New South Wales, proponents must also adhere to the state's First Nations Guidelines which are additional to the Capacity Investment Scheme requirements

If the proponent is not willing to engage

• Contact ASL as they awarded the tender and may be able to assist you

• Contact the Capacity Investment Scheme as they manage the tender and may be able to assist you

• Contact us

Visit our website to see CIS projects near you and to understand what contractual commitments are being made by proponents.