What the Capacity Investment Scheme Means for Energy Engagement Practitioners

Australia’s Capacity Investment Scheme (CIS) is accelerating the delivery of renewable energy generation and storage—but it is also raising the bar for community and stakeholder engagement.

Designed to support Australia’s transition to 82 per cent renewable electricity by 2030, the CIS provides long-term revenue underwriting to encourage investment in new renewable generation and clean dispatchable capacity, such as battery storage. The scheme has now expanded to deliver 40 GW of new capacity by 2030, representing around $73 billion in investment across the electricity sector.

While the scale of the investment is significant, one aspect of the scheme is particularly relevant for engagement professionals: community engagement and social licence are now formal considerations in project assessment.

Projects seeking support under the CIS are assessed on more than their technical and commercial merits. The Australian Government has confirmed that tender evaluations include a strong weighting on community and First Nations engagement, social licence commitments, project deliverability and broader system benefits.

This represents an important shift for the energy sector.

Engagement Is Becoming a Competitive Advantage

As renewable energy projects continue to expand across Australia, engagement is increasingly influencing whether projects can progress successfully.

The Australian Government has also established dedicated Community Engagement and Benefits Sharing Roundtables, bringing together industry, local government, community organisations and regional representatives to help shape the ongoing design of the Capacity Investment Scheme. The discussions have focused on what meaningful engagement looks like and how projects can deliver lasting benefits for local communities and First Nations peoples.

For energy engagement practitioners, this reinforces an important message: strong engagement is no longer simply about managing project impacts. It is becoming a strategic capability that supports investment confidence, project delivery and long-term community trust.

Building Trust Throughout the Energy Transition

As Australia’s energy transition continues, communities increasingly expect to understand not only what projects are being proposed, but how they will benefit local people, respond to community concerns and create lasting social and economic value.

The Capacity Investment Scheme reflects this changing landscape by recognising that successful renewable energy projects require more than technical excellence—they also require meaningful engagement with communities and First Nations peoples from the outset.

For engagement professionals working across energy, infrastructure and major projects, the CIS is another clear signal that social licence, benefit sharing and authentic engagement are becoming central to the success of Australia’s clean energy transition.

Further Reading

• Australian Government – Capacity Investment Scheme
  Australian Government – Capacity Investment Scheme: Consultation and Engagement