Business & Investment

Australian Renewable Energy Agency (ARENA)

ARENA has approximately $2.5 billion in funding, which is legislated and extends until 2022. ARENA funds activities that are expected to advance renewable energy technologies towards commercial readiness, improve business models or reduce overall industry costs. ARENA takes a portfolio approach to investments, providing funding grants along the innovation chain from research in the laboratory to large-scale pre-commercial deployment activities.

Name

ADVANCING RENEWABLES PROGRAM

Potential Value
Co-contribution

Generally in the form of grants, which may include recoupable grants.

ARENA grants awarded to activities under the programme are expected to be between $100,000 and $50 million, with applicants typically expected to at least match the funding being sought from ARENA.

Eligible Businesses

The programme’s objective is to fund activities that contribute to one or more of the following outcomes:

  • reduction in the cost of renewable energy
  • increase in the value delivered by renewable energy
  • improvement in technology readiness and commercial readiness of renewable energy
  • reduction in or removal of barriers to renewable energy uptake
  • increased skills, capacity and knowledge relevant to renewable energy

Scope      

Programme funding must be used only for approved expenditure on the activity.

Information on what the programme funding may and may not be used for is set out in Appendix B: Eligible Expenditure Guide.




Name

INNOVATION FUND CEFC & ARENA

Potential Value
Co-contribution

Finance for eligible projects across renewable energy, energy efficiency and low emissions technologies:

  • The CEFC is making up to $1 billion available for Innovation Fund-related investments over 10 years, drawing from the CEFC's $10 billion funding pool.
  • Ability for multiple councils to enter into joint financing agreements for eligible projects
  • Access to competitive fixed-rate longer-dated senior debt, up to 10 years

Eligible Businesses

The Innovation Fund targets technologies and businesses that have passed beyond the research and development stage, but are not yet established or of sufficient maturity, size or otherwise commercially ready to attract sufficient private sector capital.

The Innovation Fund can provide debt and/or equity finance for innovative clean energy projects which support renewables, energy efficiency and low emissions technologies.

Scope      

The Innovation Fund is targeting a diversified portfolio of Australian-based clean energy investments with a long term commercial outlook. Eligible investments span renewable energy, energy efficiency and low emissions technologies.

Eligible technologies:
  • Australian-based investments
    • Investment recipient has an Australian ABN
    • Investment falls into one of these categories and is located in Australia:
      • Building, fixtures or specific projects
      • Equipment /chattel (including ships and aircraft) or otherwise undefined activity (whether of a commercial, governmental or other nature)
    • Indirect finance of either or both of one of the above categories (e.g. Fund of Funds)
  • Renewable energy technologies
    • Renewables (including bioenergy, geothermal, hydro, ocean, solar, waste-to-energy, wind)
    • Hybrids of renewables with other technologies
    • Technologies (including enabling technologies) that are related to renewable energy (including supply of goods or services)
  • Energy efficiency technologies
    • Energy efficiency (including energy conservation and demand management)
    • Technologies (including enabling technologies) that are related to energy efficiency (including supply of goods or services)
  • Low emissions technologies
    • Technologies that reduce emissions that are not renewables or energy efficiency (including supply)
  • Prohibited technologies
    • A technology for carbon capture and storage (within the meaning of the National Greenhouse and Energy Reporting Act 2007)
    • Nuclear technology; or
    • Nuclear power

As part of the Innovation Fund's activities, the CEFC is providing opportunities for private and institutional financiers to also support innovative clean energy investments through co-investment opportunities.