Polaris solar PV net news: Prime Minister of Australia Mr Turnbull (Malcom Turnbull) recently announced that Australia will set up a total of $ 1 billion in clean energy Innovation Fund (Clean Energy Innovation Fund) to accelerate the pace of commercialization of emerging clean energy technologies. This trust fund was established to promote not only technological innovation, create more jobs, while public investment also brings economic benefits.
ACB News the Australia China business online reported, it is learned that clean energy innovation fund will be administered by the Australian clean energy Finance Corporation (CEFC) and renewable energies (ARENA) common management, providing debt and equity financing for clean energy projects, the Fund will be spending allocation from the CEFC’s 10 billion Australian dollars.
Turnbull said in a statement, Australia clean-energy market matures, but clean energy projects at an early stage, it is difficult to grow to sufficient size to attract private equity investment. Clean energy innovation fund is to fill the investment gap for these early projects.
Most importantly, clean energy innovation fund will benefit the Australian energy sector to improve productivity, develop new technologies, and helping Australia achieve by 2030 26-28% greenhouse gas emissions reduction goals.
Market watchers said that early-stage clean energy projects often lack the money and long-term investment prospects are uncertain in the current carbon-trading market circumstances, chosen by the Australian Government to invest in clean areas is a reasonable decision. Australian Government has suggested that the clean-energy innovation fund will aim with a storage capacity of large-scale solar power stations, offshore areas such as wind power, bio-fuels and the smart grid.
Institute for public policy think tank in Australia kugelatan (Grattan Institute) energy expert Tony ˙ wood (Tony Wood) pointed out that the Australian Government selected by CEFC ARENA and two new fund management is a ground-breaking initiative.
CEFC modelled on prototype is a United Kingdom Green Investment Bank, but at the time of formation of the Government did not consider country differences, lack of explicit functions, and unable to fully assess the return on investment, investment activity has been at risk of the CEFC. Currently CEFC mixed investment projects, on the one hand, repeated investment in similar projects is inefficient use of public funds, on the underwriting Australia national institutions such as the Bank launched green investment bonds can be changed to address market failures.
ARENA, the basic function of the Agency is to provide renewable energy projects earlier research and development grants, and return on investment required. New Fund to be the biofuel and areas such as Smart grids are not within the scope of functions of the ARENA.
After the establishment of clean energy innovation fund, the Government will on the one hand by removing the ARENA early research and development capital investment for energy, to save money and away from the higher-risk investments, on the other hand the new Fund to accept a lower return on investment mean aim CEFC invest in riskier areas of scientific and technological innovation.
Wood on the prospects of the new Fund. In his view, low-emission and renewable energy investments in the areas of return should be driven by price, and that price should be determined directly or indirectly by climate change policy. Just 2012-2014 and Australia is not subject to relevant regulations, and the launch of the emissions reduction fund has yet to fill in the blanks.
In addition, political uncertainties on the Australian investments in the renewable energy target scheme an impediment. Some preferential policies, such as solar roofing price subsidies in State, cost is very large, but with little success.
Wood and to scrap the ARENA does not provide a return on investment and additional funding questioned the decision. In his view, although ARENA development project funded by risk, but success can significantly reduce the cost of clean energy production.
The contrary, the Government stressed in a statement that solar power storage systems, not only Australia’s solar flagship program (Solar Flagship Program), the research and development of the technology had not been successful, the technology in the world, progress was slow. Clean energy innovation fund looking to invest in this technology returns expected more difficult.
Wood says that the Australian Government will use public funds, by addressing market failures to promote innovation in low-emission technologies or the excessive pursuit of saving money, eventually leading to funding opportunities “double loss”, remains to be seen.
Original title: o the Government clean energy innovation fund will promote technology commercialization