September 18, 2020 Read More →

Australia plans $1.9B for renewables while continuing gas focus

Stockhead:

The Australian Government has extended funding for the Australian Renewable Energy Agency (ARENA) and Clean Energy Finance Corporation (CEFC) but – as widely expected – has moved to change their remit from wind and solar to “low emission” technologies.

The two agencies will be granted up to $1.9bn with ARENA set to receive the lion’s share, or up to $1.62bn in total funding, including guaranteed baseline funding of $1.43bn over the next 10 years.

As part of this, the government plans to introduce new legislation to allow the agencies to invest in other technologies that would reduce emissions in agriculture, manufacturing, industry and transport such as carbon capture and storage (CCS) and hydrogen. 

However, pro-renewables think tank the Institute for Energy Economics and Financial Analysis (IEEFA) rubbished the focus on gas, saying that throwing public money at gas will benefit only one sector – the gas industry.

“Globally, gas prices are at unsustainably low levels. Gas companies simply cannot make money at these prices and are going broke. Yet Australians are paying way too much for their own gas,” IEEFA gas/LNG analyst Bruce Robertson said.

“That’s because a handful of companies on the east coast controls the price and they fix it at levels above international parity pricing.” 

[Bevis Yeo]

More: Australia sets aside $1.9bn for ‘low emission’ tech, maintains focus on gas

Posted in: IEEFA In the News

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