One way First Nations can participate in and benefit economically from clean energy is to hold equity in projects. The First Nations Clean Energy Network has released a new guide designed to support First Nations communities review their participation in clean energy projects.

Proponent’s commitments to benefit-sharing from big wind, solar and battery projects backed by government revealed in new resource.

Australia’s energy transition offers an opportunity for cooperation and mutual financial benefit for investors and First Nations groups.

First Nations people, communities and groups are increasingly looking to co-design, lead and partner or own renewable energy systems. 

It is estimated that 43% of all clean energy infrastructure required to get Australia to net zero emissions by 2060 will be sited in regional and remote areas where First Nations groups and communities have rights, interests and aspirations.

Even outside these areas, First Nations groups are rights-holders and represent an integral stakeholder in Australia’s clean energy transition and have the potential to play a significant role in clean energy projects. 

International case studies and interviews with project developers and First Nations groups in Australia who have partnered on projects indicate that in addition to creating fairer energy systems, there are quantitative benefits of increased First Nations participation and inclusion across the clean energy project life-cycle.

The five significant benefits identified by this research and consultation include: 

1. Quicker project development cycle: First Nations support for clean energy projects can decrease the time taken for projects to progress through the development cycle. The development cycle is accelerated because of broader community support and prioritisation by council and planning authorities. Planning prioritisation can occur because the project has a broader community benefit and is aligned with government policy to support First Nations groups.
2. Greater access to, and potentially lower cost of, capital: Two reasons were identified for the lowering of capital costs. First, socially responsible projects, and projects that provide a demonstrable social benefit, attract broader pools of capital. Capital providers indicated that they would prioritise projects delivering broader benefit to First Nations groups over projects that simply met basic legal and planning requirements. Second, First Nations participation can result in a decreased risk profile due to the faster access to land and other components of the development cycle, resulting in greater likelihood of obtaining capital.
3. Access to, and preference amongst, offtake parties: The markets for offtake are highly competitive. Offtakers’ energy supply tenders often include First Nations involvement as a requirement or preference for clean energy projects from which energy will be purchased. Projects with greater levels of First Nations participation are more highly regarded by offtakers. 
4. Secondary market premium valuation: As a result of the benefits identified above, clean energy projects with significant First Nations participation are of higher value in the secondary market.
5. Local workforce benefits: For projects in regional and remote locations, partnering with local First Nations groups provides the opportunity for a relationship with a local workforce. These projects have the ability to optimise construction, operation and management costs by employing a local workforce and engaging with local First Nations-owned businesses. In addition to reducing costs in the construction and operation stages, local employment elevates the profile of projects, increasing attractiveness and potential for support from government programs and schemes.

Despite these benefits, investor backing of First Nations participation and inclusion in clean energy projects is currently low. For example, there are currently no operational clean energy projects in Australia with First Nations equity participation. 

Investors in clean energy projects in Australia are currently missing out on the additional value and broader economic benefits that partnering with First Nations groups can bring.

By harnessing the cultural knowledge, experience and political impact of First Nations groups, and incentivising success of the project, First Nations participation and partnership can assist project developers to realise these benefits.

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'Renewable projects can help by leaving a legacy of infrastructure and programs to make life better in the bush. Shared equity schemes go even further.'

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.

Australia will use Canada as a model to improve economic empowerment for First Nations organisations in its renewable energy transition.

The First Nations Clean Energy Network is excited to launch our First Nations clean energy project tracker today which highlights the transformative potential of a First Nations-led clean energy transition.

Common ownership with Indigenous communities provides a way for energy industry project proponents to align their interests with those of Indigenous communities, allowing both to benefit in a meaningful way from such projects.

Equity participation of Indigenous communities in such projects is becoming a more common strategy and involves unique challenges and considerations that other co-ownership situations do not.  

While Indigenous communities are diverse and their views cannot be condensed to a homogenous set of bullet points, this article discusses common priorities that such projects typically must consider, particularly relating to economic, environmental, and cultural interests of Indigenous communities.

Similarly, unique challenges relating to financing, transactional issues, and the general structure of co-ownership agreements are explored.

Authors: Vivek W Arrier, Luke Morrison, Ashley White, and Stephen Buffalo, Indigenous Ownership of Natural Resource Projects: A Framework For Partnership and Economic Development, ALBERTA LAW REVIEW (2021) 59:2

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Thanks for use of the front cover photo roman pentin