We’ve worked hard this year to ensure First Nations outcomes in the design of the Capacity Investment Scheme.
The Capacity Investment Scheme (CIS) is a $70 billion investment in renewable energy generation and capacity over four years to meet the Federal government’s 2030 renewable energy targets.
Designed well, the government’s Capacity Investment Scheme can deliver mutually beneficial outcomes -- for First Nations communities, and also for proponents -- by reducing risk and increasing shareholder value which can be gained through First Nations partnerships and ownership of renewable energy projects.
Similar to Tender 3, the Capacity Investment Scheme's Tender 4 for renewable energy generation -- out now -- incorporates First Nations Eligibility Criteria and Merit Criteria.
'Projects will be attributed higher merit where they meet the relevant requirements of the merit criteria, including where they can demonstrate better practice and genuine First Nations engagement, and First Nations social and economic benefits,’ states the Australian Energy Market Operator (AEMO).
'Projects will be attributed higher merit where they can meet the relevant requirements of the First Nations Merit Criteria:
'Merit Criteria 4 – First Nations engagement: This criterion will be used to assess the Proponent’s approach to engagement strategies and understanding of Traditional Owners and First Nations communities.
'Merit Criteria 8 – First Nations commitments: This criterion will be used to assess the quality of the Project’s approach and strength of binding commitments to improve First Nations economic and social outcomes, including economic participation for Traditional Owners and First Nations communities.'
Additionally in Tender 4, ‘a new First Nations eligibility criterion will be introduced, which requires Proponents to demonstrate a clear intent and commitment to uphold First Nations legal protections.'
AEMO's First Nations and Social Licence Market Briefing Note provides additional information to assist proponents in preparing quality tender bids that address the First Nations and Social Licence Criteria.
More tender design tweaks incorporating a First Nations equity and revenue set aside are planned for 2025.
We look forward to minimum equity ownership percentage targets being included in Capacity Investment Scheme tenders going forward, similar to what is happening in Canada. For instance, there BC Hydro’s Call To Power includes the minimum Indigenous equity requirement of at least 25%.