Antinuclear

Mixed fortunes for Australia’s Renewable Energy Agency in Budget

ARENA plans new mechanisms as funding cut, deferred REneweconomy By Giles Parkinson on 15 May 2013 Australia’s Renewable Energy Agency – the independent institution charged with giving a kick-start to emerging renewable energy  technologies and supporting infrastructure – has had its overall funding cut by around 5 per cent and a further $370 million deferred to beyond 2020 as part of changes announced in the 2013 Federal Budget on Tuesday.

The cut, which effectively reduces ARENA’s total budget from $3.2 billion to just over $3 billion – comes from a decision to return $159 million of unspent money from the Education Investment Fund – a $200 million facility that was to run alongside the now defunct Solar Flagships program – to the budget.

CEO Ivor Frischknecht said he was disappointed by the budget cut – which effectively removes 10 per cent of unallocated monies, even though these particular funds were not under its direct control – but he said the “reprofiling” of the funding for other programs could actually suit ARENA’s investment objectives.

Under the changes announced by Treasurer Wayne Swan, funding for ARENA would be trimmed by $70 million in 2014/15 and by $150 million in the two subsequent years, with the money backloaded from 2020 into a program that would be extended out to 2021/22.

The move to effectively delay around 7 per cent of its unallocated funds has been criticised by clean energy supporters. The Clean Energy Council said it was disappointed the funds had been sent into the “budget ether”, just one year after ARENA had been established as an independent body to provide long-term stability to investors, and to avoid this very problem of annual budget cuts. ARENA enjoys bipartisan support, unlike the $10 billion Clean Energy Finance Corporation.

However, Frischknecht told RenewEconomy in an interview that the “reprofiling” of funding was a “sensible” move because it would help align the funding with the agency’s own investment plans……..

Frischknecht said ARENA was particularly pleased to get a $6.1 million increase in operational funding, which would allow the agency to expand, adding in project managers and specialist financing and transactional teams to look at new projects. “This is a big vote of confidence in our work,” he said. http://reneweconomy.com.au/2013/arena-plans-new-mechanisms-as-funding-cut-deferred-81277

May 15, 2013 - Posted by Christina Macpherson | AUSTRALIA - NATIONAL, politics