CIS Sets Aside 500MW for First Nations Equity Deals 'A Clear Signal' That Clean Energy Must Include Those Who Own the Land

The federal government has set aside 500 megawatts in each of the next two Capacity Investment Scheme tenders for projects that bake in equity or revenue sharing deals with First Nations groups. The move follows a landmark First Nations co-ownership deal struck last year that could be worth up to $30 million to a community over two decades.

The federal government is making First Nations ownership a non-negotiable part of Australia's renewable energy future. A new 500-megawatt "Set Aside" pilot has been introduced in the next two Capacity Investment Scheme tenders, carving out dedicated capacity for projects that share real financial power with Traditional Owners.

In CIS Tender 9, 500 MW is set aside from the 5 GW generation target. In Tender 10, 500 MW and 2 GWh of battery storage is reserved from the 16 GWh dispatchable targets. To qualify, developers must partner with First Nations groups through minimum five per cent equity stake, revenue sharing equivalent to five per cent equity, or a combination that reaches that threshold.

The new model was developed in response to feedback from First Nations stakeholders, according to the Department of Climate Change, Energy, the Environment and Water. "The initiative is designed to help deliver lasting economic and social benefits for Traditional Owners and First Nations communities," the department said in a statement.

The policy is not theoretical. A landmark deal has already shown what is possible. Last year, Ampyr Australia struck a co-ownership agreement with the Wambal Bila Indigenous community corporation for its 300 MW, 600 MWh Wellington battery, now called Bulbul, being built next to existing solar farms in NSW. Under the deal, Wambal Bila has an option to take a five per cent equity stake in the project.

It is believed to be the first co-ownership deal in the sector that does not involve Native Title or other legal rights. Ampyr CEO Alex Wonhas estimated it could be worth $20-30 million to Wambal Bila over the two-decade life of the project.

Wambal Bila's Gavin Brown told a First Nations Clean Energy Network webinar that the arrangement came about because there aren't many jobs that come out of battery development. They were both looking for a "commercial win-win" that wasn't just benefit or revenue sharing." It wasn't entirely by design. We had to move pretty quickly, and we got it done in six months," Brown said." That's not recommended... we had to build up trust quickly and that was done through a really transparent operating style of the proponent."

Ampyr's head of First Nations and community partnerships, Will Story, said the Set Aside is a "clear signal" that it is time for developers to seriously look at this. "It's a clear signal from government that the energy transition needs to include First Nations communities, it's as simple as that," Story told Renew Economy. "I don't pretend that every community wants the same thing or that every partnership should look the same, but this is a clear signal that long term economic empowerment is an opportunity that we need to look at seriously."

The CIS has already delivered substantial First Nations benefits. Across Tender 7, 19 projects committed nearly $1.2 billion in social licence commitments, including First Nations benefits such as revenue sharing agreements, subcontracting, training, and workforce development. In Tender 4, 20 projects committed an estimated $348 million in First Nations benefits. Previous tenders have also delivered significant outcomes.

Here is the question this Set Aside raises. A pilot program that reserves 500 MW for First Nations equity deals is a significant step. But with billions of dollars in renewable investment flowing across the country, why is this only a pilot? And when a battery project can deliver $20-30 million to a community over its lifetime, why isn't this the standard, not the exception?

As the CIS bakes First Nations equity and revenue sharing into its next tenders, The Silicon Review asks a final question. When the land is the most valuable asset in the energy transition, shouldn't the people who have cared for it for millennia be more than just stakeholders in the profits?

FAQ:

Q: What is the First Nations Set Aside pilot in the CIS?
A: The federal government has set aside 500 MW in each of the next two CIS tenders for projects that include equity or revenue sharing deals with First Nations groups. Developers must partner with Traditional Owners through a minimum five per cent equity stake or equivalent revenue sharing.

Q: What is the Wambal Bila-Ampyr deal?
A: Ampyr Australia struck a co-ownership agreement with the Wambal Bila Indigenous community corporation for the 300 MW Bulbul battery project in NSW. Wambal Bila has an option to take a five per cent equity stake, estimated to be worth $20-30 million over the project's life.

Q: How much capacity is set aside for First Nations projects?
A: Tender 9 has 500 MW set aside from 5 GW generation target. Tender 10 has 500 MW and 2 GWh set aside from 16 GWh dispatchable targets.

Q: What qualifies a project for the First Nations Set Aside?
A: Projects must demonstrate commitments with First Nations partners equivalent to at least five per cent equity participation, revenue sharing, or both, and be assessed against the usual CIS merit criteria.

Q: What First Nations benefits has the CIS already delivered?
A: Tender 7 projects committed nearly $1.2 billion in social licence commitments, including First Nations benefits. Tender 4 projects committed $348 million in First Nations benefits.