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Western Australia Policy Overview: First Nations and Clean Energy

Western Australia has very strong solar resources, and also high quality and nationally competitive wind resources that are largely untapped, particularly for offshore wind. There is clearly much interest and potential for the development of clean energy projects on land where First Nations communities hold an interest.

Native title over most of Western Australia has been resolved. There have been 135 determinations that native title exists in Western Australia, covering in excess of 1.828 million square kilometres or over 70% of the Stateʼs area. Exclusive native title has been recognised over more than 1 million square kilometres (over 40% of the State). 

Nearly 220,000km2 of land within Western Australia is held within the Aboriginal Lands Trust (ALT) estate, constituting about 8.7% of the State. There are approximately 12,000 people living on the ALT estate in 142 communities.

In addition to native title and ALT land, the Aboriginal Communities Act 1979 (WA) creates a regime of ʻcommunity landsʼ which are declared by the State (and include most Aboriginal communities in the State). Community councils have the power to make by-laws in relation to the community lands regarding access, use of community lands, building safety, and regulation of conduct.

Download the paper here

 

 

Energy landscape in Western Australia

Due to the geographic isolation, the Western Australian electricity network is located outside of the National Electricity Market (NEM) and hosts three primary electricity networks:

  • South West Interconnected System (SWIS);
  • North West Interconnected System (NWIS);
  • Regional Power.

Key high-level Australian government statistics of the energy landscape in Western Australia include:

  • renewables had a 17% share of electricity generation in 2022, up from 15% in 2021
  • gasʼ share of electricity generation in 2022 was 60%
  • WA's share of total Australian gas-fired electricity generation in 2022 was 52%
  • Western Australiaʼs share of Australian gas production is 61%
  • mining's share of energy consumption is 32%
  • 451 gigajoules of energy is consumed per person.

The Western Australian government has committed to an interim 2030 greenhouse gas emissions reduction target of 80% below 2020 levels, but not a distinct renewable energy target. Notably, the Pilbara mining facilities account for two-thirds of Western Australiaʼs emissions and the state contributes 35% of emissions covered by the national Safeguard Mechanism.

The proposed State Climate Change Bill 2023 opened for consultation in October 2023 and was introduced to Parliament on 30 November 2023. The legislation is set to:

  • provide a framework for the state climate response;
  • formalise the goal of net zero emissions by 2050; and
  • create requirements for emission reduction targets.

The Stateʼs Energy Transformation Strategy is in its second iteration and includes initiatives across four areas through to 2025. In November 2023, the WA Government announced a new government entity PoweringWA to oversee the delivery of transmission, renewable generation and storage in the primary grid. It also includes ʻempowering Aboriginal people and impacted communities to gain opportunities from Western Australiaʼs low-emission, renewable energy transformation'.

The Federal Government is providing $3 billion in concessional finance for transmission projects via the Clean Energy Finance Corporation (CEFC). These are proposed to occur in the:

  • North West Interconnected System (NWIS); and
  • South West Interconnected System SWIS).

As stated in the joint media release concerning this funding announcement, there is an intention that “the Australian and Western Australian governments will work closely with First Nations Australians to understand their views on this investment.”

 

Prepay metering, First Nations, housing and energy

For many First Nations communities, there are significant energy justice issues, especially for people living in social housing, rental housing and remotely - for this cohort, accessing the benefits of rooftop solar is very difficult.

Horizon Power is the main customer supplier in the North West Interconnected System (NWIS), the others (Alinta, BHPBilliton, Pilbara Iron/Rio Tinto and ATCO Australia) primarily supply or

self-supply large users on the network. Horizon Power also provide the broader supply of power to isolated regional towns and remote communities - servicing 53 Aboriginal communities. The geographic scale of the state means there are five interconnected systems being in East Kimberley (Kununurra, Wyndham, Lake Argyle) and in Esperance and Hopetoun. In addition, there are 32 microgrids or isolated power systems for smaller communities.

These remote communities must prepay for power. Horizon Powerʼs Prepaid Power program is enabled via the Horizon Power app and also recharge facilities across the remote community locations. The Horizon Power Uplift rate for the Stateʼs Distributed Energy Buyback Scheme (DEBS) is significant for certain towns ranging up to 55.99c/kWh peak rate, which provides an incentive to switch to renewables (from primarily diesel supply). However, First Nations communities located remotely have a reduced opportunity to benefit from renewable energy as many cannot connect more solar PV due to voltage constraints.

Whilst Horizon Power is the asset owner and operator, the regions are serviced by on-the-ground First Nations organisation service providers, including Kimberley Regional Service Provider (KRSP) for the Kimberley; Meta Maya Services (MMS) for Pilbara, Mid West & Gascoyne; and Ngaanyatjarra Services (NgS) for Goldfields Esperance.

 

Renewable energy projects

There are 16 utility-scale wind farms operating in Western Australia. Several of these are combined wind and solar or diesel plants. Projects occur either as retailer or distributor-owned projects or as joint ventures with private developers.

Offshore wind is also being developed in Western Australia and the Federal Government announced a community consultation period (from November 2023) for Bunbury to become an offshore wind zone (one of six nationally).

The SWIS Demand Assessment found that the South West Interconnected System (SWIS) may need around an additional 4,000km of new transmission lines and around 50GW of new renewable electricity and storage infrastructure to support increased demand over the next 20 years. Across the SWIS, there are many actions underway such as large scale batteries, renewable energy hubs, community battery and virtual power plant trials. In remote areas, there are community batteries, stand-alone power systems and centralised solar projects underway.

 

First Nations-led energy projects

Across Western Australia, there are unique partnerships already emerging and many more potential sites that could be viable for First Nations-led and/or partnered clean energy projects.

Clearly, there is great opportunity for First Nations to play a leading role in the clean energy industry in Western Australia, particularly given the scale of projects proposed and the land access requirements.

A number of native title groups in Western Australia have entered into partnerships, joint ventures and Indigenous Land Use Agreements with clean energy project developers and of note is the Western Green Energy Hub, Yindjibarndi Energy Corporation (YEC) and the East Kimberley Clean Energy Project.

There are other First Nations enterprises participating in the energy transition such as Tjiwarl Katu Power.

When considering clean energy projects, obtaining the right advice is critical, which includes legal and commercial, as is leveraging political and financial capital to ʻbuy intoʼ projects or to have an allocated stake in exchange for land access or other negotiated agreements.

There is also an opportunity for expansion of opportunities relating to the mining projects located on Aboriginal land as the sector consumes 32% of the state's energy and is under pressure to reduce emissions.

Executive Summary

  1. Land rights, native title and renewable energy resources 
  2. Energy landscape in Western Australia
  3. Prepay metering, First Nations, housing and energy
  4. Renewable energy projects
  5. First Nations-led energy projects

First Nations data and information for Western Australia

  1. What is the First Nations population and the demographics in Western Australia?
  2. What are the prominent First Nations institutions in Western Australia?
  3. How is land commonly held by First Nations groups in Western Australia/what rights and interests do First Nations hold in Western Australia?
  4. What opportunities exist to develop projects on tenure held by First Nations?
  5. What kind of funding and support do First Nations representative bodies receive?
  6. The capacity and capability of First Nations organisations
  7. A description of the levers, capacities, and capabilities required to negotiate an equitable benefit for renewable energy projects.
  8. Key and recent issues relating to economic development and First Nations and other points of relevance to First Nations outcomes such as special programs or support
  9. Existing relationships between First Nations and the renewable energy sector in the jurisdiction?
  10. Are there energy security/access/justice issues for First Nations in Western Australia?
  11. Is there finance / funding available for First Nations renewable energy projects?
  12. Western Australia renewable energy policies and information
  13. What are the key renewable energy policies, programs, and initiatives?
  14. The electricity network in Western Australia
  15. What renewable energy projects are in the pipeline in Western Australia or concluded and of relevance?
  16. What rules or policy does Western Australia have for promoting energy storage?
  17. Are there any policies or frameworks or programs in the jurisdiction that are relevant or have a focus on First Nations outcomes?
  18. Does Western Australia provide any support, funding, or policy levers for community energy projects or social / community housing electrification and solar / storage solutions?
  19. Are there barriers to the placement of solar on First Nations housing?
  20. Does Western Australia have programs or policies supporting jobs and skills outcomes and business development for First Nations?

First Nations data and information for Western Australia

What is the First Nations population and the demographics in Western Australia?

In the 2021 Census, 88,693 people identified as First Nations in Western Australia (WA). This represents 3.3% of the population and a gradual increase from 3.1% in both prior Census dates of 2016 and 2011. The population represents 11% of the national population and is third to New South Wales and Queensland.

Almost half (47.4%) of WAʼs Aboriginal and Torres Strait Islander people lived in Greater Perth in 2021. Of that group of 88,693 people:

  • 95.8% identified as Aboriginal;
  • 1.8% identified as Torres Strait Islander;
  • 2.3% identified as both Aboriginal and Torres Strait Islander;
  • 50% were under 25 years of age.

There are 280 discrete Aboriginal and Torres Strait Islander communities across 26 Local Government Areas (LGA). In 2021, the LGA with the highest Aboriginal and Torres Strait Islander populations were Swan, Broome and Derby-West Kimberley. Aboriginal and Torres Strait Islander people represented:

  • 3.5% of the population in Swan (5,302 people);
  • 28.6% of the population in Broome (4,847 people);
  • 60.3% of the population in Derby-West Kimberley (4,267 people).

The top two LGAs with the greatest proportion of Aboriginal and Torres Strait Islander people were:

  • Ngaanyatjarraku (84.5% of the total LGA population);
  • Halls Creek (77.6%).

Notably, the proportion of Aboriginal and Torres Strait Islander people aged 20 to 24 years who had completed Year 12 or equivalent was 51.2%, up from 29.0% in 2011.

 

What are the prominent First Nations institutions in Western Australia?

In WA, the Native Title Representative Bodies (NTRBs) and Native Title Service Providers (NTSPs) are:

The Aboriginal Advisory Council of Western Australia (AACWA) was created under Section 18(1) of the Aboriginal Affairs Planning Authority Act 1972 (AAPAA) to advise the WA Government. The Department of the Premier and Cabinet acts as the secretariat, and the group meets up to six times per year to advise on policy.

The Office of the Registrar of Indigenous Corporations has 1,232 entities listed for WA, which is 36% of the national number of registered corporations (pertinent given the scale of population). Less than 4% of those are classified as large entities.

Key entities of relevance to the power industry are the First Nations organisations that act as on-the-ground service providers for electricity under Horizon Power (the state-owned power company). These are:

The National Native Title Council (NNTC) is the peak body for the native title sector and it operates across Australia (including WA). Through the native title system, the NNTC advocates for the rights and interests of all First Nations people. It is a membership-based non-profit, made up of NTRBs, NTSPs, Prescribed Body Corporates (PBCs) and Traditional Owner Corporations (TOCs).

Other examples of large First Nations corporations in the State are provided below with service themes.

Employment, education and training - eg. Ashburton Aboriginal Corporation; Gumala Aboriginal Corporation; Kununurra Waringarri Aboriginal Corporation; Marninwarntikura Women's Resource Centre; Midwest Employment & Economic Development Aboriginal Corporation; Murujuga Aboriginal Corporation; Ngarliyarndu Bindirri Aboriginal Corporation; Nirrumbuk Aboriginal Corporation; Wilinggin Aboriginal Corporation; Winun Ngari Aboriginal Corporation; Wirlu-Murra Yindjibarndi Aboriginal Corporation.

Health care and health promotion - eg. Broome Regional Aboriginal Medical Service; Carnarvon Medical Service Aboriginal Corporation; Derbarl Yerrigan Health Service Aboriginal Corporation; Derby Aboriginal Health Service Council Aboriginal Corporation; Milliya Rumurra Aboriginal Corporation; Moorditj Koort Aboriginal Corporation; Ngangganawili Aboriginal Community Controlled Health and Medical Services Aboriginal Corporation; Ngnowar-Aerwah Aboriginal Corporation; Ord Valley Aboriginal Health Service Aboriginal Corporation; Puntukurnu Aboriginal Medical Service Aboriginal Corporation; South-West Aboriginal Medical Service Aboriginal Corporation; Wirraka Maya Health Service Aboriginal Corporation; Yorgum Healing Services Aboriginal Corporation; Yulella Aboriginal Corporation; Yura Yungi Medical Service Aboriginal Corporation.

Community services, housing and tenancy, municipal services, tourism - eg. Djarindjin Aboriginal Corporation; Garnduwa Amboorny Wirnan Aboriginal Corporation; Kalumburu Aboriginal Corporation; Kullarri Regional Communities Indigenous Corporation; Marra Worra Worra Aboriginal Corporation; Paupiyala Tjarutja Aboriginal Corporation; Pilbara Meta Maya Regional Aboriginal Corporation; The PKKP Aboriginal Corporation; Tjiwarl; Western Australian Family Violence Prevention Legal Service Aboriginal Corporation; Western Desert Puntukurnuparna Aboriginal Corporation; Wungening Aboriginal Corporation.

Land and waters management—caring for country, cultural heritage, mining - eg. Banjima Native Title Aboriginal Corporation; Buurabalayji Thalanyji Aboriginal Corporation; Dambimangari Aboriginal Corporation; Jamukurnu-Yapalikurnu Aboriginal Corporation; Karlka Nyiyaparli Aboriginal Corporation; Palyku-Jartayi Aboriginal Corporation; South West Aboriginal Land & Sea Council Aboriginal Corporation; Wintawari Guruma Aboriginal Corporation; Yamatji Marlpa

Aboriginal Corporation; Yawoorroong Miriuwung Gajerrong Yirrgeb Noong Dawang Aboriginal Corporation; Yindjibarndi Aboriginal Corporation; Yawuru Native Title Holders Aboriginal Corporation; Yinhawangka Aboriginal Corporation.

Many other entities under other regulatory structures exist outside of the First Nations Corporation structure. The WA Government Closing the Gap Implementation Plan 2023-2025 was developed with the Aboriginal Health Council of WA, which is the only WA-based formal party that signed the national Partnership Agreement on Closing the Gap with the WA government.

For industry, government and other entities, engagement with First Nations structures around renewable energy as per the Aboriginal Empowerment Strategy Western Australia 2021-2029 could include:

  • regional Aboriginal representative structures
  • peak bodies for Aboriginal community-controlled organisations
  • remote community councils (or corporations / associations)
  • Traditional Owner bodies.

 

How is land commonly held by First Nations groups in Western Australia/what rights and interests do First Nations hold in Western Australia?

WA has no dedicated Aboriginal land or land rights legislation such as that which exists in the Northern Territory (see the Aboriginal Land Rights (Northern Territory) Act 1976 (Cth)), New South Wales (see the Aboriginal Land Rights Act 1983 (NSW)) or Queensland (see the Aboriginal Land Act 1991).

The First Nations estate in WA largely comprises of native title and the Aboriginal Lands Trust (ALT) (although the two tenure types are not mutually exclusive; native title is regularly recognised to exist over the ALT estate).

Native title over most of WA has been resolved. There have been 135 determinations that native title exists in WA, covering in excess of 1.828 million square kilometres or over 70% of the Stateʼs area. Exclusive native title has been recognised over more than 1 million square kilometres (over 40% of the State).

The ALT is a statutory body corporate created under the Aboriginal Affairs Planning Authority Act 1972 (AAPAA Act) (AAPAA). Its functions include:

  • using and managing land held by it in accordance with the wishes of the First Nations people living on the land (so far as that can be determined and is practicable)
  • negotiating and entering into financial arrangements, contracts, and undertake projects on the land it holds (either directly or in partnership with other entities)
  • any other functions delegated to it by the WA Planning Authority.

Nearly 220,000km2 of land within WA is held within the ALT estate, constituting about 8.7% of the State. The ALT manages 301 parcels of land including 243 Crown reserves, 47 Freehold, 6 general purpose leases and 5 pastoral leases. There are over 290 existing leasing arrangements which constitute approximately 13 million hectares (or 54%) of the ALT estate. The ALT estate also includes 81 ALT reserves under Part 3 of the AAPAA that have special protections including the need for

non-Aboriginal people to obtain permits to enter the reserve and the need for consent of the ALT

before any leases or other interests are granted. There are approximately 12,000 people living on the ALT estate in 142 communities.

In addition to native title and ALT land, the Aboriginal Communities Act 1979 (WA) creates a regime of ʻcommunity landsʼ which are declared by the State (and include most First Nations communities in the State). Community councils have the power to make by-laws in relation to the community lands regarding access, use of community lands, building safety, and regulation of conduct.

 

What opportunities exist to develop projects on tenure held by First Nations?

There is significant potential to develop clean energy projects in areas where First Nations communities hold land interests and First Nations organisations are already developing proposals, projects or businesses to participate in the clean energy transition. Those PBCs and other First Nations organisations with significant land interests near water resources, transmission lines or major existing projects are particularly well placed and should consider seeking their own advice about their options.

First Nations communities hold extensive land interests in some of the areas which are most suited to large scale renewables projects in the state. There is a strong interest from industry in developing First Nations partnerships for these kinds of projects and several have already been announced.

There is also a significant opportunity for clean energy projects on First Nations land in mining regions given that the mining sector consumes 32% of energy in WA and mining companies are under increasing pressure to decarbonise their operations.

In addition, there is potential to develop projects for the extraction of critical minerals deemed essential for the national transition to renewables.

On a smaller scale, microgrid, standalone power and embedded network projects are well suited to remote communities and First Nations communities may consider providing land for these projects or developing the projects themselves.

 

What kind of funding and support do First Nations representative bodies receive?

The Commonwealth Government makes some basic support funding available for PBCs called ʻBasic Support Fundingʼ. This funding is for meeting basic administration and compliance requirements. The Commonwealth Government has also made additional funding available in the form of capacity building grants for PBCs. PBCs must apply for these grants, which can be used on activities to increase the PBCʼs capacity to take advantage of economic opportunities.

The capacity and capability of First Nations organisations

The capacity of First Nations representative organisations in WA varies greatly from organisation to organisation.

The significant impact of mining and resources industries across much of the State means that many PBCs, native title claimants, and native title representative bodies have experience negotiating complex Indigenous Land Use Agreements (ILUAs) or ancillary agreements to agreements reached under section 31 of the Native Title Act 1993 (Cth). In some cases, these agreements have provided funding and other opportunities to develop capacity and capability.

Some PBCs, Aboriginal corporations and NTRBs in the State have negotiated (and continue to negotiate and enter into) a variety of different commercial arrangements relating to housing, heritage, pastoralism, tourism, resources projects, and emissions reduction projects. Examples include Yawuruʼs Jalbi Jiya Housing program; Wintawari Gurumaʼs Guruma Resources and Yulur Heritage ventures, including Wintawari Guruma Enterprises; Kimberley Agriculture and Pastoral Company; Browse Native Title Agreements; South West Native Title Settlement; and Kimberley Land Councilʼs Savanna Burning Carbon Projects.

Some community corporations have experience in delivering services and facilitating or maintaining smaller infrastructure projects.

Despite this, there are many First Nations organisations that have limited access to the key resources they need to develop their organisational capacity. Particular challenges can be cash flow, meeting competing organisational priorities, and finding staff or advisors with the right skills who understand the unique legislative framework that PBCs operate in and which the organisations can afford to engage.

It is important that any third party approaching a First Nations organisation to undertake activities on Country is prepared to fund the provision of independent legal, commercial and other expert advice to ensure that the First Nations organisation and the people it represents can properly participate in any negotiations. Independent, expert advice is critical to obtaining free, prior and informed consent (FPIC).

 

A description of the levers, capacities, and capabilities required to negotiate an equitable benefit for renewable energy projects.

Development approvals

Public submissions in relation to proposed projects are usually invited and community members can make submissions in support of a project or to oppose all or some aspects of a project.

This can present an opportunity for First Nations communities to talk to clean energy companies proposing projects in their region.

Native title land

If a clean energy project will require a Crown licence (including for the purpose of an access road, etc) over land where native title rights and interests have been recognised or a registered native title claim has been made, that licence should only be granted if it falls into one of the categories of future acts that are valid under the Native Title Act 1993 (Cth).

In many cases, a project proponent is likely to need to negotiate an ILUA with any registered native title claim group or PBC. An ILUA sets out how a proposed activity or activities may occur and can provide compensation or other benefits for the native title party. In these cases, there will be very strong opportunities for the negotiation of equitable benefits by the PBC or native title claim group.

There will be times when proponents may not need an ILUA because other future act provisions in the Native Title Act 1993 (Cth) will apply. Whether this is the case will depend on the purpose of the licence, the past use of the land and any native title existing in the land, amongst other issues. In those circumstances, the proponent and/or the State Government will need to follow the requirements of the relevant parts of the Native Title Act 1993 (Cth). These requirements may

involve notifying or consulting with the PBC or native title claim group or providing for public notification of the particular acts, in order to give potential native title parties an opportunity to lodge a native title claim within a certain timeframe and exercise procedural rights on behalf of the potential native title holders. Even if an ILUA is not required, PBCs can use this as an opportunity to start discussions regarding mutually beneficial opportunities.

 

Key and recent issues relating to economic development and First Nations and other points of relevance to First Nations outcomes such as special programs or support

Employment rates in WA are the second lowest in Australia, being 46% for WA First Nations Australians aged 15–64 in 2021. There has been a large shift in youth education levels, with 7.4% of people aged 18-24 years attending university or higher education institutions in the 2021 Census, up from 4.3% in 2011. In 2021, 78.8% lived in appropriately sized (not overcrowded) dwellings.

The 2023-24 WA State Budget increased funding to support Close the Gap outcomes by $281.5 million. Notably, up to 70% of Aboriginal wellbeing initiatives are delivered by First Nations organisations solely or in partnership. The Budget hosts many significant socio-economic programs including:

  • $42.6 million for Essential and Municipal Services Upgrade for Aboriginal Remote Communities
  • $77 million for funding for Local Aboriginal Cultural Heritage Services
  • $31.1 million for the Aboriginal Community Connectors Program
  • $27.5 million for the Wadjemup Burial Ground and repairs on Rottnest Island
  • $18.3 million for South West Aboriginal Medical Service Health Hub
  • $11.8 million for the Kimberley Juvenile Justice Strategy
  • $8.3 million for Geraldton Aboriginal Short Stay Accommodation
  • $6 million for the Aboriginal Community Controlled Organisation Peak body and the Aboriginal Health Council of WA
  • $5.8 million for the Driving Access and Equity Program
  • $5.8 million for additional Aboriginal Mental Health Workers
  • $5.4 million for youth Psychiatric Services in the East Kimberley
  • $2.3 million for the Warmun airstrip.

 

Existing relationships between First Nations and the renewable energy sector in the jurisdiction?

The renewable energy sector operates across many levels in the WA context. This includes government-owned, private projects, and increasingly, joint ventures. There are many examples of partnership projects in First Nations communities via Horizon Power which are outlined in the latter sections.

Three large and unique First Nations and renewable energy developer project partnerships in the pipeline for WA are:

Located on the lands of the WA Mirning People, the Western Green Energy Hub is proposed to generate around 50 gigawatts (GW) via solar and wind and enable 3.5 million tonnes of green hydrogen per year. The WA Mirning People have a stake in the project via the following actions:

Shareholdinginthecorporateentity–MirningGreenEnergyLimited(MGEL)holdssharesin WGEH and can appoint a person to be a director on the WGEH board. The Mirning Traditional Lands Aboriginal Corporation RNTBC is the sole member of MGEL.

 

  • A shared corporate charter with principles of the project including creating shared wellbeing on a healthy planet as well as open, honest and meaningful engagement and information sharing and transparency with the WA Mirning People.
  • The project intends to support the development of a Mirning-led First Nations economy and the strengthening of culture and traditions.
  • WGEH is currently negotiating an ILUA with the WA Mirning People.

 

YEC is a partnership between renewable energy developer ACEN and the Yindjibarndi Aboriginal Corporation (YAC). The purpose of YEC is advancing major renewable energy projects on Yindjibarndi Ngurra (country), located near major industrial energy users. The partnership has a target of 750 megawatts (MW) combined wind, solar and battery storage. The partnership includes the following attributes:

  • YEC includes an ACEN-appointed director and chairman and a Yindjibarndi-appointed director.
  • Yindjibarndi approval for all proposed project sites on Yindjibarndi Ngurra.
  • Yindjibarndi equity participation of 25% to 50% in all projects.
  • Preferred contracting for Yindjibarndi-owned businesses.
  • Training and employment opportunities for Yindjibarndi people.

The East Kimberley Clean Energy Project is proposing a 1,000MW solar farm developed on MG Corporation (Yawoorroong Miriuwung Gajerrong Yirrgeb Noong Dawang Aboriginal Corporation) freehold land near Kununurra, WA. The solar energy will be combined with energy from the Ord Hydro Power Plant at Lake Argyle to produce green hydrogen. It will then be piped to Balanggarra Country in Wyndham and converted to green ammonia. The partnership includes the following attributes:

  • A partnership between Kimberley Land Council, Balanggarra Ventures Limited, MG Corporation, and project development and investment group Pollination.
  • Traditional Owners co-developing, co-deciding and self-determining the project scope with the ambition of economic independence.
  • Traditional Owners as shareholders, not just stakeholders.
  • De-risking and accelerating project delivery via streamlined processes for heritage, native title, environmental, engineering and approvals.

There are other First Nations enterprises participating in the energy transition such as Tjiwarl Katu Power.

 

Are there energy security/access/justice issues for First Nations in Western Australia?

Housing tenure is closely related to energy security issues. The most common tenure types for First Nations households in WA are:

  • owned with a mortgage (27.8%)
  • rented through a real estate agent (19.4%)
  • rented through a state or territory housing authority (18.6%)
  • owned outright (10.8%).

Of note is the role of government with the high ratio of renters via a state or territory housing authority.

WA has a Uniform Tariff Policy (UTP) for small-scale customers that has a cap on retail pricing which means that all WA customers pay the same price regardless of geographic location. Horizon Power as the regional and remote energy supplier recoups income shortfalls from remote areas via the Tariff Equalisation Contribution and the Tariff Adjustment Payment. In many of these isolated grids, and even ʻedge of gridʼ for the primary SWIS, it is becoming financially viable to switch from entire reliance on diesel generators to solar and battery storage.

In regard to subsidised support, all WA households will receive at least $400 of energy bill relief during the 2023/2024 financial year, with 350,000 households receiving $826 under the Energy Assistance Payment. For financial hardship cases, Hardship Utilities Grant Scheme payments will increase by 10%, ranging between $640-$1060 per household based on remoteness.

In 2009, Horizon Power began installing electricity prepayment meters. There are now 1,300 prepayment meters in remote communities.

Horizon Powerʼs Prepaid Power program is enabled via the Horizon Power app and also recharge facilities across remote community locations. Access issues may occur when bills have not been paid – once a meter is disconnected, the customer does not have access to electricity, even via solar PV.

Horizon Power in 2021 completed network upgrades across 13 First Nations communities to increase the asset management provision and customer service. This included equipment upgrades at a house and community level to bring community infrastructure up to parity with larger population townships and ensure ownership and maintenance schedules were clearly articulated. For the first time, residents were then able to access customer protections under the Small Use Customer Code and to call the fault line for any electrical issue and receive assistance.

A recent paper (Geographies of regulatory disparity underlying Australiaʼs energy transition) has highlighted that there are many energy customers living in remote parts of WA who are not equally protected by consumer electricity retail regulations, with remote and First Nations communities more likely to be underserved on multiple fronts.

This paper mapped five categories of regulatory protection for household electricity consumers in Australia (1) life support protections against disconnection, (2) guaranteed minimum service levels,

(3) mandated disconnection reporting, (4) complaints process clarity and independence, and (5) clear contractual guidelines for rooftop solar connection. The research in this paper demonstrated that remote communities are 18% more likely to receive fewer than four of these five protections compared to urban or regional communities. First Nations communities are 15% more likely to be underserved compared to communities that are not majority First Nations. These groups overlap. Approximately 1 in 5 Australians live in settlements where not all consumers have all five of the protections examined, while all urban and regional settlements are legally required to protect life support customers, guarantee service levels, and report disconnections. Across Australia only 2 of the 631 settlements where prepayment can operate have clearly outlined conditions for prepay customers to connect rooftop solar.

Is there finance / funding available for First Nations renewable energy projects?

The Australian Renewable Energy Agency (ARENA) has various funding opportunities of relevance to First Nationsʼ led or co-designed projects including for regional and rural microgrids.

The Indigenous Land and Sea Corporation (ILSC) can provide funding and other support for commencing or land or water-based enterprises (such as a clean energy project), undertaking a planning and/or feasibility assessment and building or upgrading infrastructure, plant or equipment.

The 2023-24 WA State Budget announced the following funding streams that may have some direct or indirect relevance to First Nations people or communities in respect of the renewable energy transition and/or climate change adaptation:

  • $42.6 million over four years for the Essential and Municipal Services Upgrade for Aboriginal Remote Communities
  • $40 million Sustainable Geoscience Investments package to accelerate critical minerals discoveries and to help meet demand for minerals used in new battery technologies (including a boost to the Exploration Incentive Scheme to increase greenfield exploration)
  • $20.2 million for Future Drought Fund programs to build farm and regional community resilience
  • $93.4 million for the training sector, including new and expanded initiatives that support students in the regions to access training, women to enter apprenticeships in

non-traditional fields and for Aboriginal people to gain employment

  • $4.2 million for a $2,000 completion grant and a tool safety equipment rebate of up to $500 for construction apprentices
  • $1.86 million to facilitate the development of a co-designed West Kimberley climate change adaptation strategy
  • $2 million from the New Industries Fund to support female and Indigenous entrepreneurs in the innovation sector.

In respect of climate change adaptation and Caring for Country, there are community stewardship grants (between $1,000 and $450,000) available from the Department of Primary Industries and Regional Development for community-based projects that serve to protect and restore the local environment, enabling local community groups to undertake stewardship of natural resources in their local area. The State Governmentʼs “Climate Adaptation Strategy” also contains several commitments relating to First Nations which could provide opportunities for funding.

Further grants are available to communities through State Government and some Commonwealth agencies, and there are also general possible funding opportunities for First Nations available.

Western Australia renewable energy policies and information

What are the key renewable energy policies, programs, and initiatives?

The WA government has committed to a 2030 greenhouse gas emissions reduction target of 80% below 2020 levels as well as the net zero by 2050 goal. It does not currently have a renewable energy target.

The proposed Climate Change Bill 2023 has recently been open for consultation and was introduced to Parliament on 30 November 2023. The legislation is set to:

  • provide a framework for the state climate response
  • formalise the goal of net zero emissions by 2050
  • create requirements for emission reduction targets.

The Energy Transformation Strategy includes initiatives across four areas through to 2025. These are:

  • Implementing the Energy Transformation Taskforce decisions
  • Integrating new technology into the power system
  • Keeping the lights on as the power system transitions
  • Regulating for the future.

In November 2023, the WA Government announced PoweringWA to oversee the delivery of transmission, renewable generation and storage in the primary grid.

The Federal Government is providing $3 billion in concessional finance for transmission projects via the Clean Energy Finance Corporation. These are proposed to occur in the:

  • North West Interconnected System (NWIS); and
  • South West Interconnected System (SWIS).

 

As stated in the joint media release concerning this funding announcement, there was an intention that “the Australian and WA Governments will work closely with First Nations Australians to understand their views on this investment.”

As part of the SWIS Demand Assessment, $126 million has been committed for network augmentations, network upgrades and internodal works. This includes:

  • $2.3 billion for state owned energy retailer and generator Synergy to deliver a 500MW Battery Energy Storage System in Collie, and a second 200MW Battery in Kwinana; and
  • $368 million for Synergy to build a new wind farm at King Rocks and a proposed expansion of the Warradarge Wind Farm near Eneabba, with a combined wind capacity of up to 210MW.

The DER Roadmap was released in 2019 and is valid through to 2024 with a focus on smart grid capability for the SWIS via projects such as virtual power plant trials and community batteries, rather than an expanded mandate to remote communities.

The State Infrastructure Strategy has six key objectives, with four of relevance:

  1. value-adding for strategic commodities;

2.approachingthetechnologyfrontier;

 

  • transitioning to net zero emissions technologies;
  • promoting and leveraging Aboriginal cultural heritage and enterprise.

 

 

The electricity network in Western Australia

Due to the geographic isolation, the WA electricity network is located outside of the National Electricity Market (NEM) and hosts three primary electricity networks:

    • South West Interconnected System (SWIS);
    • North West Interconnected System (NWIS);
    • Regional Power.

In WA, electricity assets and infrastructure are owned by a mixture of government and private companies.

The SWIS supplies over a million customers, including covering Perth, and from Albany (south) up to Kalbarri (north). Western Power, a government-owned corporation, is the licensed distributor and Synergy is the largest licensed retailer for the network and the only one that supplies

small-scale customers. The Wholesale Electricity Market (WEM) facilitates the sale of generation to retailers within the SWIS. The WEM has similarities to how the NEM works, but also fundamental differences. In particular, the WEM has a ʻreserve capacity mechanismʼ to ensure generators still receive income whether they are generating or not.

The NWIS covers the mining communities across the Pilbara and has over 15,000 retail electricity customers. Horizon Power, a government owned corporation, operates the NWIS and holds around a 25% stake in it. Five electricity companies act as generators, suppliers and retailers within the NWIS:

    • Horizon Power
    • Alinta
    • BHPBilliton
    • Pilbara Iron (Rio Tinto)
    • ATCO Australia.

Horizon Power is the main customer supplier in the SWIS; the others primarily supply or self-supply large users on the network. The broader supply of regional power to isolated regional towns and remote communities is done by Horizon Power, which services 53 Aboriginal communities. The geographic scale of the state means there are five interconnected systems, being in East Kimberley (Kununurra, Wyndham, Lake Argyle) and in Esperance and Hopetoun. In addition, there are 32 microgrids or isolated power systems for smaller communities.

The WA Department of Communities was previously responsible for providing power and water to 141 remote Aboriginal communities. In April 2023, this responsibility was transferred to Horizon Power and Water Corporation. The transition was funded out of the state governmentʼs $350 million Remote Communities Fund, with $200 million allocated to upgrades including the transition of assets to renewables and enhancing wellbeing outcomes for 12,000 residents across the communities.

Whilst Horizon Power is the asset owner and operator, the regions are serviced by on-the-ground service providers. These are:

Kimberley Regional Service Provider (KRSP) for the Kimberley

 

 

 

What renewable energy projects are in the pipeline in Western Australia or concluded and of relevance?

There are 16 utility-scale wind farms operating in WA. Several of these are combined wind and solar or diesel plants. Projects occur either as retailer or distributor owned projects or as joint ventures with private developers. An example of this is Bright Energy Investments and SynergyRED. Through their partnership, 256MW of renewable generation has been financed including the Warradarge Wind Farm, Greenough River Solar Farm and Albany Grasmere Wind Farm.

Offshore wind is being developed in WA and the Federal Government announced a community consultation period from November 2023 for Bunbury to become an offshore wind zone (one of six nationally). Of note are the following proposed projects:

Three large and unique First Nations and renewable energy developer project partnerships in the pipeline for WA are:

    • Western Green Energy Hub (WGEH)
    • Yindjibarndi Energy Corporation (YEC)
    • East Kimberley Clean Energy Project.

Global energy companies are also developing on agricultural land. For instance, BP bought Daisy Downs, a 27,000-hectare cropping property north of Mullewa, for $23 million. The proposed project is 10GW of renewable energy to convert to hydrogen and ammonia.

The Shark Lake Renewables Hub delivered in 2022 generates up to 46% of Esperanceʼs electricity. It includes:

    • a 4MW solar farm
    • two new wind turbines (9MW)
    • a battery energy storage system
    • a new 22MW highly efficient gas power station.

The Mid West & Remote Towns Integrated Resource Planning project by Horizon Power was a 2021 Commonwealth funded feasibility study to transition nine towns to 100% renewables.

Communities included Cue, Meekatharra, Mt Magnet, Sandstone, Wiluna, Yalgoo and Norseman. Future communities were proposed to be Gascoyne Junction, Laverton, Menzies and Nullagine. The study found that a 100% renewable transition was not currently feasible but steps could be made towards that outcome.

The current South East Region Hydrogen Hub & Spoke Model Feasibility Study is assessing the feasibility of:

    • producing green hydrogen from the Shark Lake Renewables Hub in Esperance

storing,transportandusingthehydrogeninthecommunitiesofHopetounandNorseman.

As part of the State Government's WA Recovery Plan, Horizon Power invested more than $75 million in regional WA. The projects are:

Additional Horizon Power projects of relevance include:

    • The Exmouth Power Project which includes a battery (installed 2022) and solar farm (yet to be installed).
    • Renew the Regions - Aboriginal Community Embedded Networks: ($3.8m project) which includes upgraded electrical infrastructure in remote communities throughout Bell Springs, Emu Creek, Mud Springs, Munthanmar, Koongie Park, Mardiwah Loop, Joy Springs, Gillarong, Karnparrmi, Loanbun, Woodgamia, Buttah Windee, and Marmion Village.
    • Renew the Regions - Stand Alone Power Systems: Up to 50 standalone power systems installed across the Kimberley, Pilbara, Gascoyne and Goldfields-Esperance regions.
    • Remote Communities Centralised Solar Project which delivered in 2022 a project in Kalumburu with the Kalumburu Aboriginal Corporation - a 929kW solar farm and 1.78MWh battery for the community of 400, supplying 64% of Kalumburuʼs electricity needs and reducing community reliance on diesel-powered generation. A Community Energy Fund (a first for the utility) will return $15,000 per year for 10 years to the community to invest in its own renewable energy projects.

A remote site funded under the Australian Renewable Energy Agencyʼs (ARENA) Advancing Renewables Program is the Agnew Renewable Hybrid Microgrid. This is the first Australian mine to be powered by a wind, solar, battery and gas microgrid and was completed in June 2023.

Another project of note is the Western Australia Distributed Energy Resources Orchestration Pilot (Project Symphony) which is trialling demand management of rooftop solar, batteries and major appliances across Perth.

Horizon Power has a project for 98 Electric Vehicle charging stations spread across 49 locations along major WA transport routes.

Plico Energy has formed a Virtual Power Plant of over 1,600 solar and battery customers.

 

What rules or policy does Western Australia have for promoting energy storage?

Funding has been allocated and trials have been deployed for energy storage to-date, including:

    • $2.3 billion has been allocated for Synergy to deliver a 500MW Battery Energy Storage System in Collie, and a second 200MW Battery in Kwinana to support the SWIS. The State Government and AEMO recently ran a tender for battery supply and the Non-Co-optimised Essential System Services (NCESS) contract was awarded to Neoen.
    • Western Power and Synergy partnered in 2018 on the PowerBank community battery project and installed three community-scale batteries utilising Tesla technology. They have run three stages of trials across 12 locations with more than 350 residents with solar participating directly via a subscription.

Battery Storage in Regional Towns ($30.8 million), deploying battery storage systems in Broome, Carnarvon, Exmouth, Marble Bar, Wiluna, Yalgoo and Yungngora. Gascoyne Junction and Menzies were removed from scope – awaiting further work.

Private companies such as Alinta are building a 100MW two-hour battery energy storage system adjacent to their 380MW gas and diesel-fired power plant at Wagerup.

 

Are there any policies or frameworks or programs in the jurisdiction that are relevant or have a focus on First Nations outcomes?

The WA government's commitment to Outcome 9 of the National Agreement on Closing the Gap – that First Nations people secure appropriate, affordable housing that is aligned with their priorities and needs has a focus on First Nations outcomes. The complimentary Aboriginal Empowerment Strategy 2021-2029 is also of relevance with regard to the high-level direction for future government actions over the next eight years. The Aboriginal Advisory Council is the strategic partner in the cross-government development of implementation plans.

The Aboriginal Empowerment Strategy 2021-2029 puts forward the important role of land and negotiated agreements into the future such as via:

    • Traditional Owners as empowered negotiators
    • increased funding and capacity development for First Nations corporations
    • land tenure that supports commercial aspirations and cultural priorities
    • use of natural resources commercially by Traditional Owners
    • Traditional Owner corporations as vehicles for economic development
    • provision of essential and municipal services and infrastructure in remote communities.

The Strategy also refers to the need for focus on enabling place-based engagement in First Nations communities.

The State Infrastructure Strategy, Foundations for a stronger tomorrow released in 2022, has a focus on delivering opportunities for First Nations people with priority on ʻinfrastructure opportunities that will improve the empowerment and self-determination of Aboriginal peopleʼ, with ʻpromoting and leveraging Aboriginal cultural heritage and enterpriseʼ being one of six key strategic objectives.

In November 2023, the WA Government announced PoweringWA to oversee the delivery of transmission, renewable generation and storage in the primary grid. The mandate states:

It will identify, reduce and manage the impact of infrastructure developments, including on native forests, endangered habitats, areas of cultural significance and other community impacts such as farming, fire and bio-hazard risks. This includes empowering Aboriginal people and impacted communities to gain opportunities from WAʼs low-emission, renewable energy transformation.

 

Does Western Australia provide any support, funding, or policy levers for community energy projects or social / community housing electrification and solar / storage solutions?

The WA Government Distributed Energy Buyback Scheme (DEBS) is an export payment for customers that encourages usage in the middle of the day (peak rates) and exporting to occur later in the day (off-peak rates):

electricityexportedbetween3-9pmearns10centsperkilowatt-hour(kWh)acrossboth Horizon and Synergy.

 

  • electricity exported between 9-3pm earns 2.25 cents per kWh on Synergy and 3 cents per kWh on Horizon Power.

 

The Scheme has been established to enable purchasing of exported energy from rooftop solar PV systems, batteries and electric vehicles. There is a slight uplift in rates across Horizon Power areas as the cost to generate is higher and particular towns receive bespoke DEBS rates. Many communities on the Horizon Power network have reached saturation of rooftop solar and Horizon Power is not able to offer DEBS to further customers ʻat this timeʼ (for example Sandstone, Yungngnora, Onslow), however Horizon Power states they are working on a range of solutions such as:

    • improving capacity constraints
    • installing battery storage
    • open public releases of solar capacity (homes and business can register to receive updates on solar releases in their community, such as the recent 250kW release for Esperance).

The Horizon Power Uplift rate is significant for certain towns (although many may be solar constrained), ranging up to 55.99c/kWh peak rate.

In November 2023, the WA and Commonwealth governments announced plans for the Federal Government election commitment to Community Solar Banks. The $19.9 million co-funded program will be focussed on remote and regional households with two key programs:

The Sunshine Saver program is a pathway to reduce bills by approximately $30 per bill via a $1 subscription levy that provides 5 units of power per day and then a discount on further units. Eligible homes are those that cannot get solar installed and participate in the DEBS program.

Solar Rewards is another program available under Synergy. Customers receive a $100 Synergy credit and ongoing electricity credits by granting access for Synergy to manage their rooftop solar in order to stabilise the grid.

The Community Energy program launched in July 2023 is a program under Synergy that will share excess solar in the SWIS network to ʻfinancial hardshipʼ customers without solar. The customers will receive free electricity between 9am and 3pm. The program is estimated to save households $500 per year while supporting energy system stability by shifting use on the network.

 

Are there barriers to the placement of solar on First Nations housing?

For many First Nations people living in social housing, rental housing and remotely, accessing the benefits of rooftop solar is very difficult.

Horizon Powerʼs Uplift rate for the Distributed Energy Buy Back Scheme (DEBS) is significant for certain remote towns, ranging up to 55.99c/kWh peak rate which provides an incentive to switch to renewables (from primarily diesel supply). However, First Nations communities located remotely

have a reduced opportunity to benefit from renewable energy as many cannot connect more solar PV due to voltage constraints.

The State Infrastructure Strategy acknowledges the poor living conditions and environmental health experienced in some remote First Nations communities and the importance of access to safe, good-quality housing in achieving outcomes in health, education and employment. The Strategy refers to the urgent need of housing and living standards to be improved across remote First Nations communities.

 

Does Western Australia have programs or policies supporting jobs and skills outcomes and business development for First Nations?

The Aboriginal Empowerment Strategy 2021-2029 describes pathways to expand First Nations economic opportunities through government action such as procurement and human resourcing. It includes requirements for agencies to:

    • support First Nationsʼs employment and business aspirations
    • connect First Nations with employers and markets
    • expand markets for First Nations businesses
    • set government employment targets, including regional targets
    • First Nations procurement targets (per agency, project, and/or region)
    • incentives for contractors to employ and procure from First Nations people
    • increase opportunities for small First Nations businesses to tender
    • engage local First Nations businesses for services and infrastructure in remote communities
    • promote industries with strong potential for First Nations participation
    • expand opportunities for funded, culturally-driven on-country work including environmental services.

The Solid Futures Aboriginal traineeship program provides support, formal training, and paid employment to complete a Certificate III in Government. They match agencies with trainees across metropolitan and regional areas.

The Aboriginal Community Connectors Program provides support and access to services including local employment opportunities via service contracts in remote areas.

The Department of Mines, Industry Regulation and Safety has established the Aboriginal Empowerment Unit (AEU) to support the delivery of the Aboriginal Empowerment Strategy. The AEU will establish teams on:

    • Aboriginal Engagement (including regional officers)
    • Aboriginal Procurement
    • Cultural Responsiveness
    • Aboriginal Outcomes.

Horizon Power, under its Reconciliation Action Plan, has targets for First Nations workforce levels as well as increasing procurement levels.

 

Information in this document should not be relied upon as legal advice. Each situation will be different and you should obtain and rely on legal advice for your own situation.