ARENA aims to further reduce cost of solar through new investment plan

Facebook
Twitter
LinkedIn
Reddit
Email
The 50MW Kidston Solar Project in the north of Queensland. Image: Genex Power.

The Australian Renewable Energy Agency (ARENA) will support projects that further lower the cost of renewable generation as part of a new investment strategy aimed at underpinning the transition to net zero emissions.

ARENA funding will be used for projects that optimise the electricity transition – including energy storage, large-scale grid integration and flexible demand – through an expanded mandate that will also see the agency back the commercialisation of ‘clean’ hydrogen for both domestic and export applications.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

“We need to utilise Australia’s abundant sun and wind resources to produce, use and supply renewable energy,” said ARENA CEO Darren Miller. “We need to optimise this transition through energy storage, large-scale grid integration, flexible demand and further reducing the cost of solar and wind.”

Miller said the new priorities take into account the key technologies and sectors where Australia can benefit in the shift to net zero emissions.

ARENA’s expanded mandate will also see it support low-emissions aluminium and steel production and explore opportunities to scale up carbon capture and storage (CSS).

The investment plan is in line with the Australian government’s Low Emission Technology Roadmap, which was launched last year and is prioritising five areas – including hydrogen production, long-duration energy storage and CSS.

While that roadmap will see the country invest more than AU$18 billion (US$12.91 billion) in low emissions technologies over the next decade, the plan did not commit to a net zero emissions target by 2050.

Since the roadmap was launched, ARENA has since secured an AU$1.62 billion funding package from the government as part of the agency’s broadened mandate to explore the development of technologies such as energy storage and hydrogen.

“We are at the beginning of a critical decade for Australia and the world as we make the investments required to reduce emissions in line with international commitments. To get to net zero, we need to invest today in the technologies that are going to transform our energy system and our economy in the years to come,” Miller said.

Since its foundation in 2012, ARENA has provided AU$1.77 billion in funding to more than 600 renewable energy projects. Earlier this year, it selected three green hydrogen projects that will share in AU$103 million to support their development.

Read Next

September 10, 2025
The CEFC has said that a coordinated approach to transmission in Pilbara, Western Australia, could save more than AU$30 billion over 25 years.
September 9, 2025
The US is forecast to reach between US$55-60 billion in clean energy tax credit monetisation in 2025, according to a report from clean energy financing technology platform Crux.
September 9, 2025
Australia's National Electricity Market (NEM) broke records yesterday when renewables supplied 76.4% of total electricity demand, with solar power contributing nearly 60% of the record-breaking clean energy mix.
September 5, 2025
Research firm Rystad Energy has found that Queensland’s utility-scale solar PV power plants have dominated the best-performing assets, in terms of AC capacity factor, rankings for August 2025.
September 4, 2025
ARENA has launched the second funding round of its AU$1 billion Solar Sunshot programme, making AU$150 million available.
September 2, 2025
Spanish construction firm GES (Global Energy Services) has secured a contract to build a roughly 700MW solar-wind-storage hybrid project in Chile.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 16, 2025
Athens, Greece
Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines