Response to the NEM Review Draft Report (Sept 2025)

By sidelining First Nations outcomes, the Nelson Review of the National Electricity Market (NEM) risks undermining both Australia’s renewable energy goals and the equitable transition that First Nations communities expect. 

The Network calls on the Review Panel and governments to ensure that at a minimum, First Nations merit criteria remain embedded in the Electricity Services Entry Mechanism (ESEM), building on the Capacity Investment Scheme's (CIS’s) strengths and aligned with the First Nations Clean Energy Strategy. 

Our recommendations

To align the Nelson Review with Australia’s commitments, including through the First Nations Clean Energy Strategy, and international best practice, the Network recommends: 

1. Amend Recommendation 8 to require First Nations and social licence merit criteria within ESEM auctions, not just as preconditions. 
2. At a minimum, establish nationally consistent preconditions, co-designed with First Nations, to prevent a race to the bottom. 
3. Develop a transparent governance and monitoring framework, such as a Developer Rating Scheme, to ensure social and First Nations commitments are tracked and enforced. 
4. Ensure the ESEM is explicitly aligned with the objectives of the First Nations Clean Energy Strategy. 

Read our submission