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. 

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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.

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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.

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Self-determined development doesn't have to be as intensive as building, owning and operating an entire asset from scratch. Best, or better, practice is emerging as Traditional Owner groups get a chance to make the call on what they need and how involved they want to be in owning and developing an energy project.

Four remote First Nations communities will be transitioned away from a diesel powered electricity supply to solar and battery storage-based microgrids, as part of a federally funded program supported by the Australian Renewable Energy Agency (Arena).

We’re excited to share our new guide providing a general overview of how Australia’s electricity system works, some of the drivers and policy settings driving energy and climate targets, and an example of the steps to develop a renewable energy project.

The clean energy transition has the potential to be very beneficial for the Australian First Nations people on whose Country much of it will occur.

This paper documents results of interviews with legal and financial experts who have very particular insight into the contents of benefits agreements currently being negotiated with First Nations groups for large scale clean energy developments – agreements which are conventionally confidential.

The results of our analysis give reason for cautious optimism in this space, confirming that First Nations people in Australia have the legal ability to veto clean energy projects on Country.

We note the wider impacts of this emergent power of veto, which makes consent more valuable to developers, but also might encourage developers to avoid First Nations Country altogether.

We further observe that as First Nations groups become key stakeholders, or co-owners, in these kinds of development, they also can become exposed to significant financial risk.

The need to access excellent advice for First Nations groups in Australia who are navigating these projects – as developers, co-owners, shareholders, board members and contractors – is more urgent than ever.

Authors: Lily O'Neill, Kathryn Thorburn, First Nations at the forefront: The changing landscape of clean energy agreements in Australia, Energy Research & Social Science, Volume 127, 2025

Read the paper

The transition to renewable energy in Australia represents a significant opportunity for First Nations communities to benefit from developments on their land.

In partnership with the First Nations Clean Energy Network and Indigenous Land and Sea Corporation, the authors conducted research exploring this opportunity, with a specific focus on the barriers preventing First Nations from achieving these benefits and what different groups of actors could do to help overcome these barriers.

In this paper we present the findings from a series of semi-structured interviews with Traditional Owners, First Nations groups, renewable energy developers and industry representatives, legal experts and other academics.

We identified two groups of barriers – overarching barriers including ongoing disadvantage and a lack of funding and resourcing for First Nations groups, and barriers specific to renewable energy developments such as the absence of Indigenous free, prior and informed consent in project approval processes and unclear, non-uniform legislative frameworks.

To overcome these barriers, we recommend strategies for different actors. For example, governments could implement Indigenous free, prior and informed consent in regulatory regimes and the renewable energy industry could establish cultural education and training programs for company staff.

Authors: Katie Quail, Donna Green, Ciaran O’Faircheallaigh, Large-scale renewable energy developments on the Indigenous Estate: How can participation benefit Australia's First Nations peoples?, Energy Research & Social Science, Volume 123, 2025, 104044, ISSN 2214-6296

Read the paper

First Nations groups in Australia hold important rights, interests, and leverage in the shift to renewable energy through native title, land rights, and other legal property rights. Many clean energy projects will be developed on land and waters where First Nations people have legally recognised responsibilities and connections.

Switching to renewable energy is crucial for cutting emissions and creating a sustainable future. For First Nations communities, this transition offers reliable and affordable power, energy-efficient homes, and opportunities for jobs, self-determination, and economic growth.

This guide to First Nations contribution to the renewables and clean energy sector was published by the ILSC.

Download the guide

Some 20 First Nations leaders from Queensland attended the third in our series of ‘Powering Up’ workshops held in Rockhampton on 14-15 May 2025.

The Queensland Renewable Energy Council launched its 'Queensland Renewable Energy Developer and Investor Toolkit' in May 2025.

Join the next ‘Powering Up’ clean energy workshop being held in Rockhampton, Queensland on 14-15 May 2025.