Three major energy innovation initiatives have been announced as part of the Federal Government’s carbon price package.


A $10 billion Clean Energy Finance Corporation to invest in the commercialisation and deployment of renewable energy and enabling technologies, energy efficiency and low-emissions technologies. It will also invest in the transformation of existing manufacturing businesses to re‑focus on meeting demand for inputs for these sectors. Funding will be divided into two streams:

  • a renewable energy stream which will have one half of the funding allocated; and
  • a general clean energy stream which will have half of the funding allocated and will be able to fund renewable energy projects in addition to the dedicated stream.


The CEFC will provide finance for projects through commercial loans, concessional loans, loan guarantees and equity. Capital will be reinvested in the CEFC.


The CEFC will have an independent Board, comprised of experts in banking, investment management and clean energy and low-emissions technologies, with its responsibilities to include setting the investment strategy for funds being invested and managing these investments consistent with the investment mandate prescribed by the Government. It will not invest in Carbon Capture and Storage technologies.


The Clean Energy Finance Corporation will be part of the Treasury or Finance and Deregulation Portfolio.

 

An Australian Renewable Energy Agency (ARENA) will be created as a statutory authority to manage $3.2 billion over nine years in existing Federal Government grants for research and development into renewable energy technologies and initiatives to bring them to market. The Agency will be funded with $3.2 billion from existing green programs including:

  • programs administered by the Australian Centre for Renewable Energy (ACRE);
  • Australian Solar Institute;
  • Australian Biofuels Research Institute;
  • Solar Flagships Program;
  • Low Emissions Technology Demonstration Fund renewable energy project;
  • Connecting Renewables Initiative;
  • Renewable Energy Demonstration Program;
  • ACRE Solar projects;
  • Geothermal Drilling Program;
  • Second Generation Biofuels Program;
  • Renewable Energy Venture Capital Fund; and
  • Emerging Renewables Program.

ARENA will incorporate the Australian Centre for Renewable Energy and the Australian Solar Institute. The Australian Renewable Energy Agency will be part of the Resources, Energy and Tourism portfolio.


ARENA will also receive future funding from:

  • discretional dividends paid by the Clean Energy Finance Corporation; and
  • a share of future carbon pricing mechanism revenue notionally allocated to the Jobs and Competitiveness Program should it be freed following Productivity Commission reviews.


A $200 million Clean Technology Innovation Program will provide competitive grants  to support business investment in low-emissions research and development in the areas of renewable energy, low- emissions technologies and energy efficiency. The program will offer grants from $50,000 up to $5 million.


Grants will be provided on a matched (50:50) co‑investment basis.


Grants will be available to businesses, as well as to companies controlled by universities and public sector research organisations.


The Clean Technology Innovation Program will be administered by the Department of Innovation, Industry, Science and Research.


Further information is at www.cleanenergyfuture.gov.au.