Through the introduction of a carbon price and complementary measures, the Government is supporting Australia’s clean energy future and the development and deployment of clean energy technologies.
The development of commercially viable low or zero emission energy technologies is essential to achieving significant and affordable reductions in greenhouse gas emissions. The energy sector is the primary source of Australia's emissions and Australia's current level of energy demand is expected to double by 2050. Clean energy technologies will play a critical role in moving to a low emissions future while meeting this increasing energy demand.
Clean energy technologies will contribute significantly to achieving Australia's 2050 target of an 80 per cent reduction in greenhouse emissions on 2000 levels. These technologies can also position Australia towards continued economic growth from its natural endowments in coal, gas and renewable energy resources.
ARENA
A new independent agency—the Australian Renewable Energy Agency (ARENA)—will be established incorporating measures currently managed by the Australian Solar Institute (ASI), the Australian Centre for Renewable Energy (ACRE), and the Department of Resources, Energy and Tourism.
Expanded Renewable Energy Target
The expanded 20 per cent by 2020 Renewable Energy Target (RET) is accelerating the widespread commercial deployment of renewable energy technologies.
With a carbon price, the RET is expected to drive around $20 billion (in today’s dollars) in private sector investment by 2020. The RET is supporting both large scale renewable energy projects, such as wind farms and solar plants and small scale installations for households, small business and community groups.
Clean Energy Finance Corporation
The Government will establish a $10 billion commercially oriented Clean Energy Finance Corporation to invest in businesses seeking funds to get innovating clean energy proposals and technologies off the ground. A variety of funding tools will be used to support projects, including loans on commercial or concessional terms and equity investments.
The CEFC will invest in energy efficiency and low emissions technologies2, as well as the manufacturing businesses that provide inputs for these sectors (for example, manufacturing wind turbine blades).
Other measures to support our clean energy future
The Government has announced a series of energy security measures as part of the Clean Energy Future package. These measures will support market stability, maintain energy security, and transition our electricity generation sector to help Australia move to a clean energy future.
Coal Sector Assistance Package
The Government recognises that a small number of existing coal mines are highly emissions-intensive and will face significant costs with the implementation of a carbon price.
In response, the Government has developed the Coal Sector Assistance Package—comprised of the Coal Sector Jobs Package (CSJP) and the Coal Mining Abatement Technology Support Package (CMATSP).
Pre-existing Government measures to support other Clean Energy Technologies
The CCS Flagships Program is funding research, development and demonstration in CCS—an important technology for the future of low emissions fossil fuel energy generation. The $1.7 billion program is already funding the development of a detailed storage viability study for the Collie South West Hub project—an integrated CO2 capture, transport and storage hub that has the potential to make significant CO2 emissions reductions from industrial processing and power generation in Western Australia's South West.
The Government is also working with the Queensland and Victorian Governments to progress other CCS shortlisted Flagships projects in these states.
Complementing this program is the National Low Emissions Coal Initiative and National CO2 Infrastructure Plan, which aim to accelerate the development and deployment of capture and storage technologies that will reduce emissions from coal, oil and gas use.
Capture technologies include pre-combustion (gasification), post-combustion capture and oxy-firing. In addition the Government has contributed to the creation of and continues to support the Global CCS Institute.
The Australian Government also provides support for clean energy technology development through:
Additional clean energy initiatives announced by the Australian Government on 10 July 2011 that will be administered by other Government agencies include the:
Contract for Closure Information
The Contract for Closure Program seeks to support the closure of around 2,000 megawatts of highly emissions intensive generation capacity in Australia by 2020, subject to negotiation with eligible generators.
Closure will be managed to ensure energy security and market stability outcomes are delivered before any capacity can be withdrawn. This will involve liaising with the Australian Energy Market Operator and affected state governments.
Further information
Further information on Australia’s Clean Energy Future is available at http://www.cleanenergyfuture.gov.au/.
1 ARENA will only administer the unallocated Connecting Renewables funding, and responsibility for managing the existing conditional commitment associated with this program will remain with the Department of Resources, Energy and Tourism.
2 The CEFC will support low emission technologies other than CCS, which will continue to be supported through the CCS Flagships Program.