Funding changes for ARENA and CEFC

FUNDING CHANGES FOR ARENA AND CEFC

The Australian Renewable Energy Agency (ARENA) » Backing new microgrids in regional and remote communities and the Clean Energy Finance Corporation (CEFC) to deliver affordable, reliable power with $67 million have received a funding boost of $1.9 billion from » Contributing $52.2 million to increase the energy the Federal Government, ensuring their operation productivity of homes and businesses, including a sector for the next decade. specific grant program for hotels supporting equipment and

Prime Minister Scott Morrison has also unveiled facilities upgrades plans to introduce new legislation which would allow ARENA and » Slashing the time taken to develop new Emissions Reduction the CEFC to invest in technologies to lower emissions outside of Fund (ERF) methods from 24 months or more to less than wind and solar, including carbon capture and storage, hydrogen, 12 months, involving industry in a co-design process and soil carbon, and green steel. ARENA will be allowed to invest in renewable energy projects implementing other recommendations from the King Review into the ERF, worth $24.6 million that are in the early stages of research and development while the » Boosting energy and emissions data and cyber-security CEFC is restricted to funding clean energy technologies that are in the commercial phase. Mr Morrison said the $1.9 billion investment package in future technologies to lower emissions would back jobs, cut costs for households and improve the reliability of energy supply, however reporting and supporting the delivery of future Low Emissions Technology Statements under the Technology Investment Roadmap process, as well as developing an offshore clean energy project development framework, together worth $40.2 million there is some concern from the industry that the new changes Minister for Energy and Emissions Reduction, Angus Taylor, said could potentially extend the life of coal-fired power plants. getting the next generation of energy technologies right would

“Australia is in the midst of a world-leading boom in renewable not only help to keep prices low and the lights on, but would grow energy with over $30 billion invested since 2017. Solar panels jobs, strengthen the economy and reduce emissions. and wind farms are now clearly commercially viable and have “We will reduce the cost of new and emerging technologies, graduated from the need for government subsidies and the market not raise the cost of existing technologies or layer in new costs to has stepped up to invest,” the Prime Minister said. consumers and businesses through mandated targets or subsi-

“The government will now focus its efforts on the next challenge: dies,” Mr Taylor said. unlocking new technologies across the economy to help drive “The government recognises the strong growth in emerging down costs, create jobs, improve reliability and reduce emissions. energy technologies that will play a role in Australia’s energy mix This will support our traditional industries – manufacturing, agricul- into the future. We need to get the balance right and our investture, transport – while positioning our economy for the future. ment to re-energise ARENA will deliver that.

“This will not only cut emissions, but deliver the reliable energy The Federal Government said it will provide ARENA with Australia needs while driving down prices for homes and businesses.” guaranteed baseline funding of $1.43 billion over ten years.

The new package also invests in a range of low-emissions, ARENA CEO Darren Miller welcomed the new funding and an reliable new technology advancements including: ongoing role for the agency. » Supporting businesses in the agriculture, manufacturing, “We are delighted to see ARENA’s important role acknowlindustrial and transport sectors to adopt technologies that edged with new funding, and we welcome a new era for ARENA,” increase productivity and reduce emissions through a new Mr Miller said. $95.4 million Technology Co-Investment Fund that was “There is still much work to be done but with an experienced recommended by the King Review team, industry knowledge and strong networks across a range of » Piloting carbon capture projects with a $50 million investment technologies and sectors, ARENA is well positioned to support in the Carbon Capture Use and Storage Development Fund Australia’s energy transformation and emissions reduction goals.” » Helping businesses and regional communities take Over its lifetime, ARENA has helped to improve the competitiveadvantage of opportunities offered by hydrogen, electric, ness of renewable energy technologies such as large-scale solar, and bio-fuelled vehicles with a new $74.5 million Future grid-scale batteries, pumped hydro, bioenergy, distributed energy

Fuels Fund technologies and hydrogen. Since 2012, ARENA has supported » Setting up a hydrogen export hub worth $70.2 million to 543 projects with $1.58 billion of funding that has leveraged nearly scale-up demand $5 billion in additional private and public sector investment.