Proponents engaged early in our new resource tracking First Nations outcomes in Capacity Investment Scheme projects have provided positive feedback, made amendments where necessary, and expressed enthusiasm for their commitments being tracked.

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.

New research shows investor backing of First Nations participation in clean energy projects offers mutual benefit for investors and First Nations groups and reduces project risk, cost and delay. 

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 now has 18 and counting First Nations clean energy equity partnerships with developers.

Significant renewable energy resources will be needed to power Australia’s energy transition, all of which need consent from Traditional Owners.

The Nari Nari Tribal Council in south western New South Wales is working with companies willing to partner with it to build a wind farm on Country.

The economic shift brought about by the Australian Government's Future Made in Australia Act cannot come at the expense of First Nations peoples. We want to see economic and policy systems that include and embed First Nations culture, rights and interests, and priorities. We don't want to see a repeat of the mistakes of the past.