Australian First Nations households and communities accessing electricity through prepayment arrangements experience extremely high levels of energy insecurity. In many cases, there is an absence of consumer protections, financial hardship assistance, or debt and disconnection relief. Until recently, these arrangements have largely avoided scrutiny.

While awareness of prepayment for electricity has improved, our research is the first national project to shine a spotlight on the previously hidden experiences of First Nations households using prepayment. The research incorporates household surveys and household-level energy use data to show that frequent disconnections are impacting food security, health, wellbeing and economic participation for First Nations prepayment customers.

Australia is entering a new era of energy-driven economic development, powered by the potential of lower cost renewables. The consent for access to First Nations’ extensive land and sea estates will be needed. It is incumbent on leaders and policymakers to recognise those same communities remain at risk of being left behind; underserved by policy and regulation to pursue opportunities that would secure their own energy futures.

To overcome these structural disadvantages Australian governments must be guided by existing frameworks, including the First Nations Clean Energy Strategy and Closing the Gap targets, and take action to ensure regulators and energy retailers work together to improve the experiences of First Nations people across all key reform areas.

There is considerable scope and opportunity for existing processes to include prepayment customers, and to bring regulation, reporting requirements and policy responses for prepayment customers in line with National Energy Market rules and regulatory standards.

Energy is an essential service that must be accessible by all, regardless of billing arrangements, location or income level. This can be achieved through the application of a nationally consistent consumer protection framework and guaranteed service levels for all customer groups.

The overarching goal of this research and associated proposals for prepayment reform is to keep First Nations people connected to power. This is consistent with wider recognition of energy as an essential service and that no- one should be disconnected due to inability to afford the energy they need.

Cite: Original Power and the prepay research team (2025) The Right to Power - Keeping First Nations communities on prepayment connected. Melbourne, Australia.

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Sixty-five thousand First Nations’ households across Australia access electricity through prepayment supply arrangements that mean they can experience disconnection rates as high as an average of 59 disconnections per year, a landmark new report shows.

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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Some 90% of First Nations who responded to a recent Heat Survey say their homes get too hot and they're struggling to afford their energy bills.

First Nations are also twice as likely as others surveyed to seek heat-related medical attention.

Some 90% of First Nations who responded to a recent Heat Survey say their homes get too hot and they're struggling to afford their energy bills.

First Nations are also twice as likely as others surveyed to seek heat-related medical attention.

Distributed by ACOSS Australian Council of Social Service in partnership with the First Nations Energy Network and National Aboriginal and Torres Strait Islander Housing Association (NATSIHA), the annual survey is tracking the intersection between heat, housing, energy costs, and people experiencing financial and social disadvantage.

The ACOSS final report states the situation facing First Nations people surveyed is worse on most indicators and must be prioritised for solutions.

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This is a once-in-a-lifetime opportunity to change the intergenerational wealth of First Peoples in this country through renewable energy projects and jobs.

Grid-connected community energy projects in Australia face significant challenges that innovative approaches to behind-the-meter asset investment can avoid. Where dedicated communities endeavour to step into grid-connected asset deployment, however, they do better in some locations than others, with some project designs than others, and where they can secure access to FCAS, technical expertise, mentoring, and even the partnership of an aggregator.

Despite the immense complexity and market risk, there are projects delivering the right mix of positive outcomes sought by their communities. Community projects so often involve generous people doing good work, but not all project configurations are equal. There is no shortcut for energy market knowledge. Caveat emptor.

To explore the value of community energy projects, whether financial, non-financial or a combination of both, it is helpful to understand the driving objectives of those that initiate them. With an understanding of the problems that proponents are looking to solve, it’s possible to reflect on how successfully these projects perform.

We identified four driving motivations, with crossovers common across projects: accelerating climate action; securing energy access, reliability and resilience; building community economic opportunity and agency, and; building Social Capital and energy transition literacy.

This report was authored by Anna Hancock, Mitch Shannon, Andrew McConnell, and Tristan Ashford, Pollination Group, July 2024

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The transition to clean energy will require the creation of a skilled workforce to take up the new job and career opportunities. First Nations are critical partners in the clean energy transition, including in the establishment of the workforce required to service the sector.

The global call to address climate change and advance sustainable development has created rapid growth in research, investment, and policymaking regarding the renewable energy transition of Indigenous communities.

From a rightsholder perspective, Indigenous Peoples' vision of sustainability, autonomy, and sovereignty should guide research on their energy needs.

In this paper, we present a multi-method, inductive examination to identify gaps between Indigenous communities' expressed needs and rights, and the questions researchers and policymakers investigate in energy transition research conducted in the context of Indigenous communities located in Canada.

We combine a systematic review of the extant literature, a scoping review of the grey literature on off-grid communities by Indigenous and non-Indigenous governments and non-governmental policy bodies, qualitative primary data collected via fieldwork, and an in-depth study of an Indigenous-led renewable energy transition study conducted by Haíɫzaqv Nation's Climate Action Team.

We holistically examine these different perspectives and identify emergent themes to recommend ways to bridge the gaps between off-grid renewable energy research and stated Indigenous community priorities.

Specifically, we recommend designing equitable research practices, understanding community worldviews, developing holistic research goals, respecting Indigenous data sovereignty, and sharing or co-developing knowledge with communities to align with community priorities closely.

Authors: Serasu Duran, Jordyn Hrenyk, Feyza G. Sahinyazan, Emily Salmon, 'Re-righting renewable energy research with Indigenous communities in Canada’, Journal of Cleaner Production, Volume 445, 2024

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It is estimated that 43% of all clean energy infrastructure required to get Australia to net zero emissions will be sited on land under the care or control of First Nations.

First Nations communities will be significantly impacted by, and critical to, decarbonisation. The Indigenous Estate should be accessed by agreement with First Nations communities.

First Nations ownership and equity models are essential, alongside genuine partnerships that have deep levels of trust, reconciliation efforts, and a sense of community. Benefit-sharing must start early (before impacts are felt), to build and sustain trust, and maintain momentum.

Best practice frameworks for clean energy projects such as, First Nations Better Practice Community Engagement and the First Nations Clean Energy Network, should be used across all projects impacting the Indigenous Estate. Factors including a commitment to cultural heritage and land stewardship, protecting Country, sharing economic and social benefits through strategic partnerships, and ensuring cultural competency.

This Mobilisation Report was put together by Net Zero Australia, in partnership with The University of Melbourne, The University of Queensland, Princeton University and NOUS, and was published in July 2023.

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