Over half the money raised from the carbon price is being used to assist households.
Australia has an abundance of solar, wind, wave and other clean energy sources. Driving innovation in clean technologies is a major element of the Clean Energy Future Plan.
Q. How will research and development into renewable energy be encouraged?
Q. Will the Renewable Energy Target be continued?
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:
- Generating clean energy for the future
- Safeguarding our energy security
- Innovation in renewable energy
- Department of Resources, Energy and Tourism – Clean energy program