Nelson review of National Electricity Market leaves a policy vacuum

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By sidelining First Nations outcomes, the Nelson Review of the National Electricity Market risks undermining both Australia’s renewable energy goals and the equitable transition that First Nations communities expect.

Our submission regarding the Nelson review is now published. We say:

The Capacity Investment Scheme (CIS) — which embeds social and First Nations outcomes in its merit criteria and makes them contractually binding — has become such a centrepiece of the Australian Government’s approach to the energy transition.

By proposing to remove competitive merit criteria, the Nelson Review leaves a policy vacuum, not only for First Nations outcomes, but also community outcomes, which have been so central to ensuring social licence concerns are addressed.

Australia’s renewable build requires unprecedented development on lands where First Nations have rights and interests.

Excluding First Nations outcomes undermines trust and increases the risk of opposition, delays and disputes—threatening Australia’s 82% renewable energy target.

The Panel’s proposed approach is inconsistent with the First Nations Clean Energy Strategy, a priority action under the National Energy Transformation Partnership endorsed by all Energy Ministers.

The First Nations Clean Energy Strategy explicitly commits governments to ensuring First Nations have equitable opportunities, benefit-sharing, and self-determination in the energy transition.

The Network calls on the Review Panel and governments to ensure that at a minimum, that First Nations merit criteria remain embedded in the proposed Electricity Services Entry Mechanism (ESEM), building on the CIS’s strengths and aligned with the First Nations Clean Energy Strategy.

Read our submission here