Government pushes for First Nations ownership in renewable projects

The Department of Climate Change, Energy, the Environment and Water (DCCEEW) is adopting a pilot initiative to help First Nations communities benefit from Australia's clean energy future.

Under the Capacity Investment Scheme (CIS), a new pilot will support First Nations communities to co-own renewable energy projects and to share in the income they generate.

The CIS aims to accelerate investment in renewable energy generation, such as wind and solar facilities, as well as clean, dispatchable capacity, including battery storage.

"This initiative aims to deliver stronger, long-term economic and social outcomes for Traditional Owners and First Nations communities," DCCEEW said.

Since the first CIS tender, the government has encouraged developers to work with First Nations communities through equity ownership, revenue-sharing arrangements and energy offtake agreements.

"Many successful projects have done this, however, feedback showed that more targeted action was needed so more communities can participate in these clean energy projects," DCCEEW said.

"In response, a new First Nations Set Aside pilot has been introduced in CIS Tenders nine and 10. The pilot will be reviewed, and improvements may be considered for future tender rounds."

To qualify, DCCEEW said proponents must commit with First Nations partners to one of the following: at least 5% equity; revenue sharing equal to 5% equity; and a mix of equity and revenue sharing equal to 5% equity.

Stakeholders including government agencies, industry, finance, peak bodies and First Nations organisations have welcomed the pilot as a positive step, DCCEEW said.