ARENA needs AU$460m federal funding lifeline, says Australia Institute

Facebook
Twitter
LinkedIn
Reddit
Email
The aftermath of a bushfire in New South Wales, Australia. Credit: Tatters, Flickr

Think tank the Australia Institute has urged Prime Minister Scott Morrison’s federal government to carve out fresh funding for the Australia Renewable Energy Agency (ARENA) in its 2022-23 and 2023-24 budgets.

The agency has no funding beyond 2021-22 and will not be able to sponsor new clean energy projects from August 2020 onwards, the Canberra-based group warned in a pre-budget submission paper on Tuesday.

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

Funding of AU$230 million (US$155 million) for the two financial years would sustain ARENA and its projects while a longer-term funding plan is devised, according to the Australia Institute.

ARENA has invested AU$1.44 billion (US$970 million) in 478 projects since it was established in 2011 by a Labor government. Those projects have yielded a total value of AU$5.49 billion (US$3.70 billion).

Solar PV has benefited from the largest chunk of grants, at AU$654 million (US$441 million), or 46% of total investment.

The think tank's report notes that investments in solar PV “have driven deployment innovation in large-scale solar farms, reduced costs in Australia and also gone to ‘pure’ R&D designed to improve the efficiency of PV cells, which has global benefits.”

The act that brought ARENA into existence set out an allocation of AU$2.5 billion (US$1.7 billion) in funding until 2020, but funding was slashed by Liberal-led governments in 2014 and 2016.

“While a 10-year funding commitment of at least $2.5 billion is ultimately needed to guarantee the long-term future of ARENA, a two-year fully funded extension for the agency will keep clean energy innovation in Australia thriving in the short-term,” Dan Cass, energy policy and regulatory lead at The Australia Institute said in a statement.

“Australia needs ARENA, if we are to do our fair share of global emissions reductions,” he added.

The full report, Fighting for the ARENA, is available here.

Read Next

Premium
September 10, 2025
PV Talk: Italy’s new CfD policy offers clear support for solar developers in an otherwise uncertain legislative landscape, says Terrawatt's Patrizio Donati.
September 10, 2025
Voltalia is seeking compensation for the ongoing curtailment of its Brazilian solar and wind fleet, which has exceeded expectations this year.
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
US solar tracker manufacturer Nextracker has acquired Origami Solar, a steel frame technology-focused company, for approximately US$53 million. 
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 8, 2025
Euclid Power has raised US$20 million Series A round led by Venrock to develop AI-driven platform and services for renewables. 

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