Pages tagged "capacity investment scheme"
Tracking First Nations participation in Capacity Investment Scheme projects
We're excited to share an important new resource detailing nearly 60 clean energy projects that have been successful in tenders awarded via the Capacity Investment Scheme, and its implications for First Nations people and communities.
Read moreFrom Commitment to Delivery
Are you seeing First Nations benefits from renewable energy projects near you?
First Nations people and communities impacted by renewable energy projects awarded through the Capacity Investment Scheme (CIS) must be approached by the project developer (the proponent) to realise engagement, participation, economic, and other benefit sharing opportunities.
First Nations communities and groups can get ahead by finding out what projects are being proposed, mapping out clear expectations around engagement, benefits, equity, and other outcomes.
This page provides information about Capacity Investment Scheme (CIS) projects that have been awarded or proposed, the First Nations merit criteria proponents are committing to, and how to get involved. It also provides a map showing where CIS projects are to be located, the tender the project was awarded against, and the First Nations benefit-sharing measures proponents have committed to (required to be published within 20 days of executing a contract under the CIS).
It aims to highlight what proponents have committed to doing, compare and contrast their level of ambition, and highlight what actions they're taking. This in turn should provide a lever for First Nations people and groups to address how, where, when, and to what extent those outcomes are being met by proponents, and to take action if needed.
The Capacity Investment Scheme (CIS) created in 2023 is a $70 billion investment in renewable energy generation and capacity over four years to meet the Federal government’s renewable energy targets. The government Scheme seeks to incentivise an additional 40 gigawatts (GW) of renewable energy capacity by 2030.
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 CIS supported projects. (Australian government)
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.
1. The government in partnership with the Australian Energy Market Operator (AEMO) determine what large-scale renewable energy projects are needed in Australia and where they should be located.
2. To ensure those projects gets built, they publish a tender offering through ASL (previously AEMO Services). The tender documents have a number of requirements that proponents must respond to, including First Nations merit criteria (see below) that may include ensuring First Nations community engagement and benefits-sharing towards, in many cases, genuine social and economic opportunities and partnerships.
3. To participate in the Capacity Investment Scheme, developers/proponents must submit their tender application to ASL, addressing the merit criteria. Proponents wanting to build renewable energy projects under the Scheme make a commitment to address and deliver on specific First Nations merit criteria to win the hefty contracts.
4. ASL assesses the tender proposals submitted. Proponents demonstrating they can meaningfully address, among other things, the specific First Nations merit criteria in each tender have a greater opportunity of being awarded the winning tender, including where they can demonstrate genuine First Nations engagement, and First Nations social and economic benefits.
5. The government awards the tender to the proponent with the highest score against their commitment to deliver on the merit criteria. The proponent must then deliver on the merit criteria as they build the renewable energy project.
Projects awarded under the Capacity Investment Scheme must adhere to strict First Nations outcomes and community consultation requirements. First Nations merit criteria may be different depending on which Capacity Investment Scheme tender contract has been awarded.
In all tender contracts, the proponent must demonstrate and ensure strong local First Nations engagement with First Nations people, and also groups potentially impacted. Successful proponent’s First Nations and social licence requirements must be published within 10 days of executing a contract under the CIS.
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.
Going forward, more tender design tweaks incorporating a First Nations equity and revenue set aside are due in 2025. And a minimum megawatt allocation for exemplar projects that have put in place First Nations equity and/or revenue sharing agreements will be introduced for CIS tenders distributed by AEMO in 2026.
Tender 1: First Nations Merit Criteria
Tender 1 for National Electricity Market (NEM) generation includes the following First Nations merit criteria against which project proponents are assessed:
- The quality and productivity of proponent’s engagement with First Nations
- Whether projects can provide First Nations with the opportunity to increase social and economic benefits such as ownership, revenue sharing, partnering, employment, and funding for sub-contracting of First Nations businesses.
This tender is now closed and projects have been awarded. However the First Nations merit criteria and need for outcomes still applies.
ASL notes the projects selected have strong local community and First Nations engagement, meaningful contractually binding social licence commitments, and are set to deliver:
- around $660 million of shared benefits for their local communities
- $280 million worth of initiatives for local First Nations groups
- over $14 billion in local content and $60 million towards local employment.
Tender 2: First Nations Merit Criteria
Tender 2 for Wholesale Electricity Market (WEM) dispatchable capacity included the following First Nations merit criteria against which project proponents are assessed:
- Merit Criteria 3 - First Nations engagement, community engagement and benefits sharing
- Merit Criteria 6 - First Nations and Social Licence Commitments
The assessment against these merit criteria looked for evidence of respectful and productive engagement with First Nations communities, and for First Nations groups to be afforded genuine social and economic opportunities through projects. This includes opportunities for ownership, revenue sharing and energy offtake agreement models for First Nations communities. The First Nations and Social Licence Market Briefing Note provides more information.
This tender is now closed and projects have been awarded. However the First Nations merit criteria and need for outcomes still applies.
ASL notes the projects selected have strong and meaningful commitments that will be contractually binding, and will deliver:
- $41.5 million worth of initiatives for local First Nations groups
- $145 million of shared benefits for their local communities
- $712 million in local content
- $63.5 million towards local employment.
Tender 3: First Nations Merit Criteria
Tender 3 for National Electricty Market (NEM) dispatchable capacity included the following First Nations merit criteria against which project proponents are assessed:
- Merit Criteria 4 – First Nations engagement: The assessment of this merit criteria will include consideration of the Proponent’s approach to engagement strategies and understanding of Traditional Owners and First Nations communities, including evidence of respectful and productive engagement, and for First Nations communities to be afforded genuine social and economic opportunities and partnerships.
- Merit Criteria 5 – Community engagement
- Merit Criteria 8 – First Nations commitments: The assessment of this merit criteria will include consideration of the Proponent’s commitments to improve First Nations economic and social outcomes, including economic participation for Traditional Owners and First Nations communities. Examples of commitments include opportunities for equity and revenue sharing and energy offtake agreement models for First Nation communities. If Proponents are successful, commitments made in response to this merit criteria will become contractually binding for delivery.
- Merit Criteria 9 – Social Licence commitments: including those made in respect of First Nations.
The First Nations and Social Licence Market Briefing Note provides more information.
An additional market briefing note providing an overview of the strengths and weaknesses of Project Bids in this tender was published by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) in May 2025, to 'assist proponents to improve bids in future tenders’.
This tender is now closed and projects have been awarded. However the First Nations merit criteria and need for outcomes still applies.
DCCEEW notes the projects awarded 'will support local communities and First Nations partners’ with some projects including 'equity sharing and contracts with First Nations-owned companies’, and will deliver:
- $218.8 million in First Nations benefits
- $3.8 billion in local content
- $36 million in shared community benefits
- $33.6 million in Australian steel.
Tender 4: First Nations Merit Criteria
In this tender, the Australian Government strengthened expectations on proponents to deliver positive social and economic outcomes for First Nations people.
Tender 4 for Renewable Energy Generation included the following First Nations merit criteria against which project proponents are assessed:
- Merit Criteria 4 – First Nations engagement: The assessment of this merit criteria will include consideration of the Proponent’s approach to engagement strategies and understanding of Traditional Owners and First Nations communities, including evidence of respectful and productive engagement, and for First Nations communities to be afforded genuine social and economic opportunities and partnerships.
- Merit Criteria 5 – Community engagement
- Merit Criteria 8 – First Nations commitments: The assessment of this merit criteria will include consideration of the Proponent’s commitments to improve First Nations economic and social outcomes, including economic participation for Traditional Owners and First Nations communities. Examples of commitments include opportunities for equity and revenue sharing and energy offtake agreement models for First Nation communities. If Proponents are successful, commitments made in response to this merit criteria will become contractually binding for delivery.
- Merit Criteria 9 – Social Licence commitments: including those made in respect of First Nations.
- A new First Nations eligibility criterion which requires proponents to demonstrate a clear intent and commitment to uphold First Nations legal protections.
Tender 4 – National Electricity Market Generation: Market Briefing Note, Stage A assessment summary provides an overview of the strengths and weaknesses of Project Bids in this tender, published by the Department of Climate Change, Energy, the Environment and Water (DCCEEW) in July 2025.
This tender is now closed and projects have been awarded. However the First Nations merit criteria and need for outcomes still applies.
DCCEEW notes the 20 projects awarded have committed an estimated:
- $348 million in First Nations benefits including revenue sharing agreements (3 projects), subcontracting, training and workforce development
- $291 million in shared community benefits including for local libraries, pools, parks and gardens, and energy rebates.
Tender 5: First Nations Merit Criteria
Tender 5 for Wholesale Electricity Market (WEM) Generation includes the following First Nations merit criteria against which project proponents are assessed:
- Merit Criteria 4 – First Nations participation and benefits sharing: Quality of the proponent’s engagement with and understanding of Traditional Owners and First Nations communities and commitments to share economic and social benefits of the project.
- Merit Criteria 5 – Social outcomes and community benefits sharing: Quality of the proponent’s community engagement and community involvement in the co-design of social outcomes strategies, priorities and commitments, and how this will create social outcomes through the project in terms of local content, employment, workforce development and shared benefits.
The Market Brief Tender 5 for Wholesale Electricity Market (WEM) Generation (August 2025) provides more information.
Tender 6: First Nations Merit Criteria
Tender 6 for Wholesale Electricity Market (WEM) Dispatchable Capacity includes the following First Nations merit criteria against which project proponents are assessed:
- Merit Criteria 4 – First Nations participation and benefits sharing: Quality of the proponent’s engagement with and understanding of Traditional Owners and First Nations communities and commitments to share economic and social benefits of the project.
- Merit Criteria 5 – Social outcomes and community benefits sharing: Quality of the proponent’s community engagement and community involvement in the co-design of social outcomes strategies, priorities and commitments, and how this will create social outcomes through the project in terms of local content, employment, workforce development and shared benefits.
The Market Brief Tender 6 for Wholesale Electricity Market (WEM) Dispatchable Capacity (August 2025) provides more information.
Tender 7: First Nations Merit Criteria
Tender 7 for National Electricity Market (NEM) Generation includes the following First Nations merit criteria and merit criteria ensuring First Nations engagement against which project proponents are assessed:
- Merit Criteria 2 — Project development plan and schedule (including land tenure progress): Projects that have secured all necessary land tenure rights for all Project sites including the connection route (if the connection route is the responsibility of the Project).
- Merit Criteria 4 – First Nations participation and benefits sharing: Quality of the proponent’s engagement with and understanding of Traditional Owners and First Nations communities and commitments to share economic and social benefits of the project.
- Merit Criteria 5 – Social outcomes and community benefits sharing: Quality of the proponent’s community engagement and community involvement in the co-design of social outcomes strategies, priorities and commitments, and how this will create social outcomes through the project in terms of local content, employment, workforce development and shared benefits.
The Market Brief for Tender 7 (October 2025) provides more information.
Nelson Review of National Electricity Market leaves a policy vacuum
By sidelining First Nations outcomes, the Nelson Review of the National Electricity Market risks undermining both Australia’s renewable energy goals and the equitable transition that First Nations communities expect.
Working together: Our leadership must guide transition to renewable energy
The ever-growing leadership of First Nations communities in driving Australia’s clean energy transition, including over 20 First Nations clean energy project partnerships in development, will be highlighted at the First Nations Clean Energy Symposium taking place on Kabi Kabi country from 13-15 August 2025.
Read moreProjects rewarded for meeting First Nations merit criteria in Capacity Investment Scheme
We’ve worked hard this year to ensure First Nations outcomes in the design of the Capacity Investment Scheme.
First Nations to be afforded genuine social and economic opportunities and partnerships in latest Capacity Investment Scheme tender offering
A new Capacity Investment Scheme tender invitation is out, with significant First Nations engagement and commitments required of clean energy proponents bidding for projects.
Investing in, incentivising and including First Nations consent, partnerships and participation in the energy transition is an investment decision
The First Nations Clean Energy Network has been busy representing our Members aspirations by responding to a number of government enquiries over the last few months.
Read moreFirst Nations benefit to be written into Future Made in Australia Act: Minister Chris Bowen MP
The Australian government has announced it will incorporate First Nations benefit as one of the key principles in the Future Made in Australia Act. Federal Minister Chris Bowen MP also wants to see more First Nations jobs, and ownership of and equity in clean energy projects.
Read moreReviewing the Federal Government’s Capacity Investment Scheme - Market Brief Generation Tender 1 - Briefing Note (May 2024)
The Capacity Investment Scheme (CIS) is a key policy mechanism being deployed by the federal government to encourage new investment in wind, solar and battery storage through a competitive tender process every six months.
On 10 May 2024, the federal government released the largest ever single tender for renewable energy in Australia - a market brief for CIS Tender 1 which seeks to deliver 6 GW of renewable electricity generation across the National Electricity Market (NEM).
Our briefing note (text below) reviews Tender 1 in terms of First Nations participation, benefits and outcomes.
Download the briefing note
Reviewing the Federal Government’s Capacity Investment Scheme Market Brief Generation Tender 1: Briefing Note (May 2024)
Executive Summary
The Capacity Investment Scheme (CIS) is a framework to encourage new investment in wind, solar and battery storage. The CIS essentially involves taxpayers underwriting clean energy projects and is the key policy mechanism being deployed by the federal government to meet its ambitious 82% renewable energy target for 2030. It is estimated that the CIS will cost $67 billion.
The CIS will be rolled out from 2024 to 2027 through a competitive tender process. The federal government says these competitive tenders will be held every six months.
On Friday 10 May 2024, the federal government released a market brief for CIS Tender 1, which seeks to deliver 6 GW of renewable electricity generation across the National Electricity Market (NEM). This is the largest ever single tender for renewable energy in Australia.
Competitive tender processes are a common tool for encouraging renewable energy projects
Over the last decade, more than 100 countries worldwide have adopted auctions as a way to deploy renewable energy. This common tool of government policy is also consistently used by governments to achieve specific outcomes - such as more inclusive growth, host community and other local benefits, and First Nations outcomes.
For example in Canada, it is clear Indigenous equity will be considered a standard requirement for those submitting tender responses. There, BC Hydroʼs call for power puts Indigenous people upfront, requiring a minimum 25% equity ownership by First Nations of each project, and it has a pass/fail assessment (i.e. a bid wonʼt progress without this minimum requirement).
In contrast, the Australian governmentʼs second CIS tender document - while moving the needle slowly - falls well short of some of these international examples where First Nations consent, participation, inclusion, ownership and equity are embedded in processes.
In this Tender 1, despite ʻsocial licence commitmentsʼ and ʻFirst Nations engagement and benefitsʼ being listed as ʻkey elementsʼ, there is nothing in the Eligibility Criteria (i.e. the pass/fail section of the tender process) about First Nations requirements, outcomes or benefits.
However, in a sign that the needle is slowly moving, First Nations requirements, outcomes and benefits are included in Merit Criteria 4 and 7.
While there is more detail to unpack in this CIS Tender 1, and also more detail to be provided about how responses will be scored - at present, and unfortunately, it seems that a proponent's proposed actions on First Nations outcomes will be conflated with and assessed alongside other broader community outcomes. Our concern is that this could diminish from the potential of the CIS, and the projects the scheme will incentivise and underwrite, to deliver strong, beneficial First Nations outcomes.
Tender 1 represents approximately one fih of the capacity the CIS is intended to deliver, and accordingly billions of dollars of Commonwealth expenditure. Whilst there are some positive inclusions, it could be said that Tender 1 pits Australia a long way behind international examples that have been around for decades for these sorts of auction processes.
Given the scale of Tender 1, it represents a missed opportunity to match international standards on First Nations outcomes and back up government rhetoric with genuine action about First Nations participation in and benefits from the clean energy transition.
Recommendations for the next Tender:
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Include requirements for First Nations social and economic outcomes in the Eligibility Criteria (see further the Networkʼs submission for building First Nations outcomes into the CIS)
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Include a requirement in the Eligibility Criteria about a proponentʼs cultural capability / cultural competency.
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First Nations outcomes should not be conflated with general social and host community outcomes. Merit criteria for First Nations outcomes should stand alone and be assessed separately from general host community outcomes.
Background
On 10 May 2024, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) announced that it had released a market brief on the upcoming “Capacity Investment Scheme (CIS) Tender 1, Generation in the National Electricity Market (NEM) (Tender 1).”
As contained in that announcement, this Tender 1 is “expected to commence on 31 May 2024 and seeks to deliver 6 GW of renewable energy electricity generation across the National Electricity Market.”
In total, the CIS is seeking to incentivise the deployment of 32 GW of renewable and storage capacity over the next few years, so this 6 GW tender is significant (19% of the capacity the CIS is intended to deliver will be covered in this tender).1
Tender 1 is only for electricity generation in the NEM, and will be allocated as follows:
|
Jurisdiction |
Minimum capacity target (GW) |
|
NSW |
2.2 |
|
SA |
0.3 |
|
Vic |
1.4 |
|
Tas |
0.3 |
|
Unallocated |
1.8 |
|
Total capacity target |
6.0 |
How the tender process works - Stage A, B and C
Tender 1 is divided into three stages, A, B and C. To progress through the stages, applicants must demonstrate compliance with the eligibility criteria and merit criteria 1-4 (stage A), merit criteria 5-7 (stage B), before progressing to a recommended list of bids (stage C).
|
Stage A - Project Bid |
|
|
Outcome of Stage A - select a shortlist of Project Bids to progress to Stage B - Financial Value Bid |
|
|
Stage B - Financial Value Bid |
|
|
Outcome of Stage A - develop a financial value shortlist to progress to Stage C - Due Diligence and Recommendations |
|
|
Stage C - Due Diligence and Recommendations |
|
‘Social licence commitments’ and ‘First Nations engagement and benefits’ are listed as ‘key elements’ for the Tender 1 process
Amongst other things, the market brief lists the following as key elements in Tender 1 as to how tenders will be assessed:
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Social Licence commitments: The Australian Government has a strong expectation that, as the energy transition evolves, genuine economic and social partnerships will emerge between industry and communities to better support and seize the opportunities of a net-zero economy. Social licence commitments will be assessed against Merit Criteria 4 and 7 and commitments will become contractually binding and are subject to monitoring and enforcement conditions should a proponent be successful in Tender 1 process. Merit Criteria 4 and 7 will be weighted 25% each compared to 20% each for the CIS South Australia-Victoria tender. Projects assessed as having low merit against any individual Merit Criteria (including social licence) may not be further assessed and may not be progressed to the financial value shortlist.
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First Nations engagement and benefits: First Nations people are important partners in the clean energy transformation. The Australian Government is committed to meaningful engagement with Aboriginal and Torres Strait Islander peoples to achieve our priorities, while contributing to Closing the Gap. First Nations engagement and commitments will be assessed against Merit Criteria 4 and 7, to form contractually binding commitments. The assessment is looking for evidence of respectful and productive engagement with First Nations communities, and for First Nations groups to be afforded genuine social and economic opportunities through the CIS.
But despite being listed as a ‘key element’ unlike the BC Hydro process in Canada, there is nothing in the Eligibility Criteria about First Nations requirements
As for the December 2023 CIS South Australian-Victoria Tender process there is nothing in the proposed Eligibility Criteria relating to First Nations outcomes.
This is unlike Canada's BC Hydro process which requires a minimum 25% equity ownership of each project, and includes a pass/fail assessment (i.e. a bid wonʼt progress without this minimum requirement).
In this CIS Tender 1, to be eligible to bid, a proposed proponent is required to demonstrate3 that they:
- are an Australian company (EC1)
- do not owe employee entitlements (EC2)
- have not been named as have breached the Workplace Gender Equality Act 2012 (Cth) (EC3)
- have not, in the last 10 years, been subject to an inquiry by the National Anti-Corruption Commission (or similar) where a finding has been made against the proponent (EC4)
- are not named as an organisation on the Consolidated List by DFAT (EC5)
- have complied with the Modern Slavery Act 2018 (Cth) (EC6).
As can be seen, while there are ʻsocialʼ outcomes included as eligibility criteria in Tender 1, there is nothing in the eligibility criteria that is about First Nations outcomes and ensuring that only entities who are culturally competent and capable are able to bid, or that there must be First Nations social and economic benefits.
Stage A has four merit criteria. Of these, merit criterion 4 is used to assess a proponent’s approach to engagement and understanding of First Nations AND local community engagement strategies
The following are the four merit criteria for Stage A:
- Merit Criterion 1: Contribution to system reliability and system benefits (the impact each project may have on the electricity system, including congestion, reliability and the projectʼs ability to provide essential system services and/or contribute to system strength)
- Merit Criterion 2: Project deliverability and timetable (This criterion will be used to assess the projectʼs ability to be operational by its Target COD. Proponents that can provide detailed evidence to demonstrate their ability to deliver each milestone, with clear articulation of strategies for mitigating delivery risks, are likely to be assessed more favourably. Successful proponents will have the target financial close, COD, and other key dates scheduled as milestones in the final CISA.)
- Merit Criterion 3: Organisational capability to deliver the project (This criterion will be used to assess the track record, capability and capacity of the proponent and its delivery partners involved in the project to provide assurance that the project can be delivered as outlined in the Project Bid.)
- Merit Criterion 4: First Nations and community engagement (see further below).
Whilst merit criterion 4 includes First Nations engagement, it is split into two parts, (i) First Nations engagement and (ii) local community engagement and benefit sharing - it is not solely about First Nations outcomes. Viewed critically it could be said to be said to encourage ‘best endeavours’ behaviour.
Because it also includes a focus on ʻlocal community engagement and benefit sharingʼ, merit criterion 4 accordingly is not solely about First Nations outcomes.
This is relevant because that creates a possibility that in assessing a tender proposal, a proponent could still score well on this merit criterion because of excellent ʻlocal community engagement and benefit sharingʼ, and yet not have exceptional First Nations engagement approaches.
Appendix 1 sets out a table of what merit criterion 4 requires a proponent to demonstrate in relation to the First Nations engagement component.
As can be seen, merit criterion 4 is about forming relationships and minimising impact on First Nations communities - it does not direct proponents to economic inclusion or partnership type outcomes.
If a proponent progresses through Stage A, there are a further 3 merit criteria. In Stage B, merit criterion 7 is about ‘social licence commitments’ which includes First Nations economic and social outcomes.
Stage B of Tender 1 includes the following 3 merit criteria:
- Merit Criterion 5: Financial value (This criterion will be used to assess financial value, based on the forecast cost of the CISA compared to the benefits associated with the project, including its effect on wholesale electricity costs, contribution to achieving 82% renewable energy by 2030, and contribution to reliability and system benefits)
- Merit Criterion 6: Commercial departures (This criterion will be used to assess the nature and extent of any commercial departures and the resulting risk-transfer from the proforma project documents, in particular the CISA)
- Merit Criterion 7: Social licence commitments (This criterion will be used to assess the quality of the projectʼs approach and strength of binding social licence commitments to improve First Nations economic and social outcomes, and regional economic development, including local supply chains and workforce).
Appendix 2 sets out a table of what Tender 1 directs a proponent to consider. Whilst it includes ʻownership, revenue sharing and energy oake agreement modelsʼ these are not mandated. On a positive note, there is an indication that ʻprojects that demonstrate stronger financial commitments...may be found to be of higher meritʼ.
Because merit criterion 7 covers both ‘First Nations economic and social outcomes’ AND ‘regional economic development, including local supply chains and workforce’, there’s the potential for proponents to conflate the two issues to the detriment of First Nations outcomes.
Merit criterion 7 will assess proponents against both their ʻFirst Nations commitmentsʼ and their ʻSocial licence commitmentsʼ.
Although presumably unlikely, the potential exists in the structure of the tender for proponents to focus more on general social licence commitments and less on First Nations outcomes, and to still score well on merit criterion 7.
Despite significant opportunities for improvement, this Tender 1 is a minor improvement on the December 2023 SA Vic auction and it’s clear we’re moving the needle slowly
Appendix 3 provides a comparison of the difference between this tender and the December 2023 SA Vic auction.
As can be seen, there are improved tender guidelines written into this Tender 1 and weʼre moving the needle slowly (see here and here for some of the Networkʼs advocacy on the CIS).
Summary and recommendations
There are likely additional details to be released about how tender responses will be assessed - this information paper is based on the market briefing released on Friday 10 May 2024.
Whilst there are some positive inclusions in the tender process, Tender 1 pits Australia a long way behind international examples that have been around for decades for these sorts of auction processes. Representing nearly one fih of the capacity the CIS is intended to deliver, and accordingly billions of dollars of Commonwealth expenditure, this represents a huge opportunity to match rhetoric about First Nations participation in the clean energy transition with genuine action.
Recommendations
-
Include requirements for First Nations social and economic outcomes in the Eligibility Criteria (see further the Networkʼs submission for building First Nations outcomes into the CIS)
-
Include a requirement in the Eligibility Criteria about a proponentʼs cultural capability / cultural competency.
-
First Nations outcomes should not be conflated with general social and host community outcomes in the tender assessment process. Merit criteria for First Nations outcomes should stand alone and be assessed separately from general host community outcomes.
Endnotes
1 Alternatively, could say that this represents 26% of the renewable capacity of the CIS (given the CIS is seeking to deliver a total of 23 GW of renewable capacity (generation projects) and 9 GW of clean dispatchable capacity (storage). In dollar value, at 19% of the CIS, this represents $12.73 billion, or if itʼs 26% of the CIS, then thatʼs $17.42 billion of taxpayers money that this Tender 1 could underwrite.
2 CISA - Capacity Investment Scheme Agreement
3 These are all the social-outcomes focused eligibility criteria that assess what might be referred to as a proponentʼs social bona fides - there are other eligibility criteria that are more technically based that are not listed here.
Thanks to Moritz Kindler for use of the photo.
Federal government makes ‘soft start’ on First Nations merit requirements in Capacity Investment Scheme
Specific merit criteria ensuring energy proponents include meaningful and quality engagement and benefit sharing with First Nations will be introduced into the Federal government’s new Capacity Investment Scheme tender process, a government representative told the First Nations Clean Energy Symposium in Adelaide today.
Read more