The Australian Renewable Energy Agency (ARENA) has approved record funding for projects accelerating the transition to renewable energy.
ARENA approved $544.1 million in 2022-23 for 60 projects valued at over $3.5 billion, marking the Agency’s largest funding approval in a single year.
ARENA’s funding was primarily derived from the project assessment and approval process for three funding rounds:
- The Large-Scale Battery Storage (LSBS) funding round – The Australian Government authorised $176.4 million in financing for eight projects, including $60 million in additional funding to expand the funding round.
- The Ultra Low-Cost Solar Research & Development (ULCS) funding round – 13 projects have been authorised for $41.5 million in funding.
- The HyGATE hydrogen funding round – Four projects have been authorised for $50 million in funding.
ARENA CEO Darren Miller emphasised the significant role of ARENA in Australia’s energy transition, citing impressive numbers as evidence.
“At ARENA we’re helping to fast-track Australia’s transition to net zero by 2050. The fact we’re seeing more funding go out to projects highlights the fact that industry is ready and able to tackle this challenge with us. Together we’re getting on with the business of renewables,” Miller said.
According to him, the total cost of 60 approved projects is expected to exceed $3.5 billion, a significant increase from previous years and a positive sector commitment.
“ARENA’s expertise, deep understanding of the renewable energy sector and willingness to fund innovative and ground-breaking projects means the Agency can provide a pathway to commercialisation for many new technologies and businesses that would otherwise struggle to get off the ground or be potentially lost to overseas markets,” he added.
ARENA has approved additional funding rounds and implemented Federal Budget measures, in addition to the approved funding, including:
- Community Batteries Round 1 – $120 million in funding
- The Hydrogen and Iron and Steel Research and Development Funding Rounds – $50 million in funding
- The 2023 Focus Areas of the Driving the Nation Program – $70 million in funding
- The Sustainable Aviation Fuel (SAF) Funding Initiative – $30 million in funding
- The Industrial Energy Transformation Studies program – $43 million in funding
In addition, ARENA will deliver the $400 million Powering the Regions Industrial Transformation Stream and has recently accepted applications for the $2 billion Hydrogen Headstart Program.
“These programs build on ARENA’s existing work within industrial decarbonisation and hydrogen and our track record shows what we’re capable of in terms of delivering transformative projects in the energy transition,” Miller said.
“Coupled with a strong existing project pipeline under ARENA’s Advancing Renewables Program, we anticipate a continued elevated level of funding activity in the coming years,” he added.
ARENA, established in 2012 by the Australian Government, has provided $2.25 billion in grant funding to 663 renewable energy projects, resulting in nearly $9.75 billion in investment.
