New Australian government cuts ARENA budget
Cuts to the Australian Renewable Energy Agency (ARENA) outlined in legislation today could have a significant impact on the development of exciting new renewable energy technologies in the future, the Clean Energy Council said.
Clean Energy Council Deputy Chief Executive Kane Thornton said the industry understood the budget challenges faced by the Federal Government, but changes to ARENA funding could undo the great progress made by technologies like large-scale solar, marine, geothermal and energy storage.
"ARENA has enjoyed bi-partisan support since its establishment, recognising the importance of developing new technologies in delivering a cleaner, smarter and lower-cost energy system - and the major benefits in jobs and investment that follow," Mr Thornton said.
"The government gave repeated commitments on its support for ARENA prior to the election and it is disappointing that the agency is now facing a significant budget reduction.
"Investing in new forms of renewable energy now will help to diversify our energy sector and reduce our reliance on gas power in the future, which is predicted to more than triple in cost between now and the end of the decade. These exciting technologies have been starting to show immense promise, coming down in cost and becoming more efficient," he said.
The bill that has been drafted to repeal the carbon price includes a provision to reduce ARENA funding for new projects by $435 million over the next three years. This would leave the agency with very limited funding over the next three years to drive the further development of renewable energy.
Mr Thornton said while current project commitments were being honoured, the proposed changes to ARENA's funding would mean that many renewable energy companies will consider moving off-shore where support for renewable energy innovation is both stronger and more stable.
"Successive governments have now reduced and altered the level of ARENA's funding during the short period since it was established. This unstable policy environment has had a clear impact on major technology innovators, developers and financiers, who will understandably be questioning their future in Australia."
