About the First Nations Clean Energy Network

The First Nations Clean Energy Network (the Network) aims to ensure First Nations participate in and benefit from Australia’s clean energy boom. As a national, First Nations-led coalition, the Network advocates for an energy system that ensures First Nations participation and tracks growth in community leadership and ownership. These projects are intended to bring jobs, investment, and infrastructure to First Nations groups and Australia as a whole.

About this guide

This guide is designed to support First Nations communities in reviewing their participation in clean energy projects proposed for, or being developed on, Country. It contains an overview of the potential risks and benefits of participating directly as a shareholder, referred to as equity participation. The guide supplements other Network toolkits, including the Best Practice Principles for Clean Energy Projects and the Clean Energy Negotiations Guide for First Nations.

First Nations equity and co-ownership in clean energy projects

Australia is transitioning away from fossil fuels, with new investments in clean energy, including storage, totalling $12.7 billion in 2024, compared with $8.3 billion in 2023. In 2024, 40% of Australia’s electricity was provided by clean energy projects. Over 60% of energy projects are likely to be developed where First Nations have rights and interests in lands and waters, representing over $20.9 billion in capital investment. Despite this, as of October 2025, there were only 10 reported utility-scale clean energy project partnerships with First Nations equity, equating to less than 1% of such projects in Australia.

Benefits of engagement as a First Nations group

Economic opportunities for renewable projects include financial benefits like equity ownership and revenue sharing through royalties or land lease payments. Non-financial benefits involve employment and training opportunities, procurement for First Nations-owned businesses, key decision-making roles, and engagement in project design. Additionally, projects provide opportunities for cultural heritage protection and addressing community-specific issues, such as providing low-cost, reliable power.

What is equity?

Equity is the value of an ownership stake in an asset or company after the deduction of debts. In a basic company structure, shareholder equity ranks behind debt, meaning if a company is wound up, its debt must be paid before shareholders receive any remaining cash or assets. Financial performance is illustrated through a summary balance sheet for a hypothetical entity, Project RenewCo, which shows how total assets and liabilities determine net equity value across different financial years.

Equity participation in clean energy projects

Equity participation is a way to proactively exercise First Nations rights, protect community interests, and ensure a boardroom role in decision-making. Potential benefits include economic empowerment through long-term revenue streams, partnership opportunities with governments and private companies, and improved community cohesion. However, barriers include a lack of access to finance and capital to fund equity contributions, highlighting the need for targeted funding and innovative financial mechanisms like concessional loans.

Ways of doing equity/co-ownership in clean energy projects

Direct equity participation involves owning shares or units in a project company. Structures discussed include a simple corporate model, where a First Nations company holds a negotiated stake, such as 25%, alongside a developer. Unit trust structures are also common, providing flexibility in distributing income to beneficiaries. Quasi-equity arrangements, such as co-development or joint venture agreements, allow parties to share risk and resources without necessarily holding shares in a corporation, though these may result in unequal bargaining power.

Understanding equity investment risks

Equity participation brings risks that must be understood from the community’s perspective. Project risks include no development due to failure to secure approvals, delays, cost overruns, and curtailment. Financial risks involve repayment risks if funds are borrowed to pay for the equity contribution, and dilution of equity if the developer requires additional funds that the First Nations investor cannot provide. Governance risks include majority decision-making, where a majority holder can pass most decisions without minority approval.

Addressing equity investment risks

Due diligence is essential when making investment decisions. Potential First Nations equity investors and their advisers should conduct due diligence on the project company, the developer, and the project to understand the nature and risks of the investment. It is recommended that First Nations gain necessary advice from a range of independent advisors with financial, commercial, and legal expertise. Early engagement with developers can help negotiate changes to reflect community rights and aspirations.

Getting down to business: Key focus areas for First Nations

Key areas for review with expert advisers include land rights, approvals, grid connection, technology supply, and construction models. Communities should investigate whether the project has the right to build on the land and the status of technical and environmental reports. Scrutinising the developer’s track record and the project’s financial model, including the timeline and budget viability, is critical to ensuring expectations for returns on investment are aligned.

Preparing for and conducting negotiations

Successful negotiations require First Nations groups to identify the key assets and value they contribute, such as native title rights and community knowledge. Appointing experienced legal and financial advisors is critical to managing complex agreements. Discussions should be framed around the group’s protocols and the Aboriginal and Torres Strait Islander Best Practice Principles for Clean Energy Projects. Building strong, collaborative relationships with developers fosters the trust necessary for long-term project success.

Case studies

The guide provides several examples of participation. The Bulabul Battery in NSW involves a 5% equity stake for the Wellington Aboriginal community. The East Kimberley Clean Energy Project in WA is owned by a partnership with four equal shareholders at 25% each, including the Kimberley Land Council. Internationally, the Oneida Energy Storage project in Canada has a ~10% equity ownership interest by the Six Nations of the Grand River Development Corporation, while the Mokai Power Station in New Zealand is 75% owned by the Tuaropaki Trust.