Turnbull govt “clean energy” plan designed to stall renewable energy projects?
Green power projects to falter under Turnbull government plan, critics say http://www.theage.com.au/federal-politics/political-news/green-power-projects-to-falter-under-turnbull-government-plan-critics-say-20160322-gnooqi.html March 22, 2016 –Nicole Hasham Environment and immigration correspondent The Turnbull government would be taking a “risky gamble” with the renewable energy sector by merging two key climate action bodies and forcing vulnerable new ventures to borrow funds rather than receive grants, green power advocates say.
Guardian Australia has reported that the government intends to combine the Clean Energy Finance Corporation and the Australian Renewable Energy Agency – two bodies that provide financial support to emerging renewable technologies.
The CEFC issues loans that must be paid back while ARENA provides grants, including a focus on projects in the research and development phase that would otherwise struggle to attract investment.
There is speculation that the merger model will mean grants would be scrapped and only loans would be available – raising questions over whether projects in their very early stages would be funded at all.
Solar Citizens national director Claire O’Rourke said the plan was a “risky gamble on the future of renewables in Australia” and would harm both research and development and reduce investment in demonstration projects.
“The kinds of projects that ARENA funds won’t necessarily get support from the CEFC because the investment conditions are different,” she said.
Ms O’Rourke said Australia’s clean energy future would be jeopardised by “gambling on secure, long-term funding for major proven programs that support innovation and investment in renewables”.
ARENA has committed more than $1 billion in grants to more than 230 projects, studies, scholarships and fellowships since mid-2012.
The former Abbott government sought to abolish both ARENA and the CEFC, and a merger would ensure their survival under Prime Minister Malcolm Turnbull, who has so far refused to guarantee their future.
However Clean Energy Council Chief executive Kane Thornton said reports that the bodies could be “funded by future borrowings are of particular concern for the sector”.
“While we recognise there are opportunities for more co-ordination and a closer working relationship between ARENA and the CEFC, it is important that the government continues future support through funding for projects, innovative finance and … high-level research and capability,” he said.
The office of Environment Minister Greg Hunt did not comment.
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