The Top 10 Australian Bioeconomy stories of 2016

#4: A Billion Bucks Investment into Clean Energy and Fuels

In March, we reported that the Federal Government established a $1 billion Clean Energy Innovation Fund to support emerging technologies make the leap from demonstration to commercial deployment.

The Clean Energy Innovation Fund will target projects such as large-scale solar with storage, off-shore energy, biofuels and smart grids. Prime Minister Malcolm Turnbull said that “the strong suite of climate change policies will work to achieve our commitment to reduce emissions by 26 to 28 per cent by 2030. This target is ambitious but achievable.” The $1 billion Clean Energy Innovation Fund will be jointly managed by the Clean Energy Finance Corporation and the Australian Renewable Energy Agency, drawing on their complementary experience and expertise. It will provide both debt and equity for clean energy projects.

The $1 billion Clean Energy Innovation Fund will be established from within the CEFC’s $10 billion allocation. This Fund will make available $100 million a year for ten years.

The Government said that “ARENA will continue to manage its existing portfolio of grants and deliver the announced $100 million large-scale solar round, and will be given an expanded focus beyond renewable energy to enable energy efficiency and low emissions technology. This will provide greater alignment with the CEFC and ensure that ARENA is able to support the full spectrum of emerging clean energy technology options. Once the $100 million large-scale solar round is complete, ARENA will move from a grant based role to predominantly a debt and equity basis under the Clean Energy Innovation Fund.”

The government added that “The changes announced work hand in hand with the Emissions Reduction Fund, the Renewable Energy Target, the National Energy Productivity Plan and our broader support for clean energy to reduce emissions and drive productivity across the energy sector.”