The Australian Government is establishing a $1 billion Clean Energy Innovation Fund to support emerging clean energy technologies’ leap from demonstration to commercial deployment.
The Clean Energy Innovation Fund will target offshore energy, large-scale solar with storage, biofuels, and smart grids projects.
It is expected to drive innovation and create the jobs of the future, while delivering a financial benefit from the investment of public money.
The Fund will be jointly managed by the Clean Energy Finance Corporation (CEFC) and the Australian Renewable Energy Agency (ARENA), drawing on their complementary experience and expertise, and providing both debt and equity for clean energy projects.
Its aim is to bridge the investment gap early stage clean energy projects face while attracting private equity.
“Clean energy is central to the Government’s strategy to address climate change and meet our emissions reduction targets. We are committed to supporting the development, demonstration and deployment of renewable technologies which will help transition Australia’s energy sector to low emissions over the course of the century,” the government of Australia said in a press release.
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, according to the Australian Government.
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.