Renewable energy and clean technologies
Record support for renewables
The transformation of our energy sector will drive around $100 billion in investment in the renewables sector over the period to 2050. The Government’s plan to support this investment includes:
- commercialisation and deployment of clean technologies through the commercially oriented $10 billion Clean Energy Finance Corporation
- research, development and commercialisation of renewable energy at an early stage through the $3.2 billion Australian Renewable Energy Agency
- research and development of clean technologies through the $200 million Clean Technology Innovation Program
- increased use of renewable energy through the carbon price and the Renewable Energy Target.
Over $13 billion is being invested in clean energy projects
The carbon price is providing a very significant incentive for the development of clean technologies, especially renewable energy. The Government is complementing this market signal with targeted investments to bring forward new technologies at as low a cost as possible.
A Clean Energy Finance Corporation
A $10 billion new commercially oriented Clean Energy Finance Corporation (CEFC) has been established to drive innovation through commercial investments in clean energy through loans, loan guarantees and equity investments.
The CEFC leverages private sector financing for renewable energy and clean technology projects, investments critical to the transformation of the Australian economy. It identifies projects and removes barriers that would otherwise prevent the financing of large scale renewable energy projects.
Investments focus on renewable energy, energy efficiency and low emissions technologies and the transformation of existing manufacturing businesses to re-focus on meeting demand for inputs for these sectors.
The CEFC is run by an independent Board made up of experts in banking, investment management and clean energy and low emissions technologies.
The Australian Renewable Energy Agency
A new, independent statutory body, the Australian Renewable Energy Agency (ARENA), has been created to coordinate around $3.2 billion in existing grant funding programs supporting research, development and demonstration of new renewable energy technologies.
The establishment of ARENA as an independent statutory body presents a unique opportunity to adopt a holistic approach to financing the research, development, commercialisation and demonstration of renewable energy technologies.
For more information see Chapter 6 – Innovation in renewable energy.
For further information about the Australian Government’s plan for renewable energy see:
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Generating clean energy for the future
Wind energy boom
Wind energy is the fastest growing large-scale renewable energy source in Australia.
Wind energy supplied around 5,000 gigawatt hours of electricity in 2010, which is around two per cent of Australia’s overall electricity needs.
This clean, renewable source provided energy equivalent to the electricity used in a year by over 700,000 homes.
In mid-2011 the Clean Energy Council indicated there was an additional 9,000 megawatts of large-scale wind farm projects proposed for development around the country. Around 1,000 megawatts of new capacity is currently under construction.
How renewable energies are already being encouraged
We have some of the world’s best wind resources, and the highest average solar radiation per square metre of any continent in the world. The Government has a range of existing initiatives to support widespread renewable energy in Australia. The Government’s Renewable Energy Target (RET) will ensure that 20 per cent of Australia’s electricity comes from renewable sources by 2020.
The RET is speeding up the introduction of commercial renewable energy technologies, and is helping to smooth the transition to a clean energy economy right across Australia. The Government’s plan is expected to drive around $20 billion of investment in renewable energy by 2020, in today’s dollars.
The RET is supporting large scale renewable energy projects, such as wind farms and solar plants as well as small scale installations for households, small business and community groups.
The RET will mean that by the early 2020s the amount of electricity coming fromsources like solar, wind and geothermal will be almost as large as all of Australia’s current household electricity use.
Solar
The Government is bringing forward a new era in large-scale solar generation. The Government recently announced that $464 million has been awarded to Solar Dawn, a solar thermal power station to be built in Chinchilla in Queensland and $307 million has been awarded to the photovoltaic Moree Solar Farm in New South Wales. These two power stations are expected to be in operation from 2015, and will be two of the largest installations in the world, supplying enough electricity for115,000 Australian homes per year.
For more information see Chapter 6 – Innovation in renewable energy.
For further information about the Australian Government’s plan for renewable energy see:
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Safeguarding our energy security
Transforming the way we generate power
Coal-fired electricity generation accounts for 75 per cent of Australia’s electricity, and a substantial proportion of Australia’s carbon pollution. In fact, Australia has the highest polluting electricity sector of all OECD countries due to our reliance on coal, and our pollution is set to increase significantly with rising demand for electricity.
Australia’s electricity generation technologies will undergo a comprehensive transformation as a result of the carbon price. This will drive a shift from coal to gas and renewable generation.
We will safeguard our energy security while moving to clean energy.
The Government will implement measures to underpin a successful energy market transition and maintain secure energy supplies.
An Energy Security Fund to promote security and transformation
An Energy Security Fund will be established to ensure there is a smooth transition in our energy sector as we move to a clean energy future.
The Government will seek to negotiate the closure of around 2000 megawatts of highly polluting generation capacity by 2020. Closing down some of our high polluting coal-fired capacity makes room for investment in low pollution plant, and kick starts the transformation of our energy sector in a responsible way.
Electricity generators that are strongly affected by a carbon price will be supported with cash assistance and free permits in return for adopting clean energy investment plans showing how they will reduce their pollution.
In addition to the Energy Security Fund, the Government will also provide the following measures to safeguard energy security and encourage transformation of the sector:
- Short-term loans to generators to help finance purchases of carbon permits.
- An Energy Security Council will advise the Government on emerging energy supply risks.
- The Government will work with the Australian Energy Market Operator to ensure its transmission planning role prepares us for the clean energy transformation and greater integration of renewable energy to the electricity grid.
For more information see Chapter 7 – Supporting energy markets.
For further information about the Australian Government’s plan for renewable energy see:
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Innovation in renewable energy
Jobs in a Clean Energy Future
Moving to a clean energy future will provide new economic opportunities for Australian workers.
Opportunities will open up in existing businesses as they move to operating in a clean energy future. Many businesses will invest in new technology to generate less pollution and become more efficient.
Jobs will also be created in new clean industries such as renewable energy generation, carbon farming and sustainable design, to name just a few.
The Government is delivering the Clean Technology Program to help directly improve energy efficiency in manufacturing industries and support research and development in low pollution technologies.
Clean Technology Investment Program
The Clean Technology Investment Program will support manufacturers by providing $800 million in grants to upgrade to less polluting equipment and cleaner technologies. It will boost their international competitiveness and help keep manufacturing strong.
Funding will be provided on a co-contribution basis, with industry providing three dollars for every dollar provided by the Government.
Clean Technology Food and Foundries Investment Program
Food processors, metal forgers and foundries face particular challenges in reducing their carbon pollution and embracing the clean energy economy. That is why the Government will provide $200 million in grants to help companies in these industries upgrade to less polluting equipment and cleaner technologies through the Clean Technology Food and Foundaries Investment Program.
These industries are important to specific rural and regional areas and the Government wants to see these industries prosper in a low carbon world. Funding will be provided on a co-contribution basis, with industry providing three dollars for every dollar provided by the Government. This means that the program will drive around $700 million in investment to help Australian food processors and foundries embrace the clean energy economy.
Clean Technology Innovation Program
The Government will provide grants of up to $200 million through the Clean Technology Innovation Program over five years to support business investment in renewable energy, low emissions technology and energy efficiency. This could support manufacturers to develop new clean technology products.
This funding will be in addition to the broader research and development tax credit.
For more information see Chapter 6 – Innovation in renewable energy.
For further information about the Australian Government’s plan for renewable energy see:
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Carbon Price
Energy Efficiency
Land Use
Renewable energy 
