Labor faces "a litmus test" of its support of renewable energy after it emerged that a Shorten government would book $1 billion of the savings cut from the Australian Renewable Energy Agency by the Coalition.
The Abbott government's 2014 budget cut $1.3 billion from the agency's funding but its subsequent attempts to axe ARENA failed in the Senate.
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| The outlook for Australia's support for renewable energy remains unclear. Photo: Bloomberg |
Under Labor's election policies on climate action released last week, it promised to spend $206.6 million over four years on emerging concentrated solar thermal technology that uses mirrors or lenses to focus energy and boost electricity output. It also promised $98.7 million for community power networks.
Mark Butler, shadow environment minister, declined to say whether Labor would support or introduce legislation amending ARENA to lock in the $1 billion cut.
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| Ivor Frischknecht (right), head of the Australian Renewable Energy Agency, at a launch last year of a study into using batteries to bolster solar power. Photo: Jay Cronan |
"Any legislation required to enable the Prime Ministers' cuts to ARENA is an issue at this stage for the government," Mr Butler told Fairfax Media.
Mr Butler implied more outspoken criticism to Turnbull's plan for ARENA - to retain ARENA but mainly to administer $100 million in annual loans - might have helped his argument within shadow cabinet to keep more funding.
"We were very surprised by the supportive noises from ARENA and the broader sector when this change to ARENA's role and the cut to ARENA's funding was announced, he said.
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| Mark Butler, Labor's shadow environment spokesman. Photo: Andrew Meares |
"The irony is that it will be a Labor government, if it has the majority, that would give life to the attacks on ARENA from the Abbott and Turnbull governments," he said. "This is a litmus test of the conviction of the Labor Party on this issue."
The Greens said Labor's reduced ARENA support was "deeply concerning", adding it would "fight tooth and nail" to stop both major parties' cuts.
"It's appalling that either the Coalition or Labor would propose ripping over $1 billion from clean energy research and innovation, right when the rest of the world is surging ahead, and when clean energy promises to create thousands of jobs," said Greens deputy leader Larissa Waters.
ARENA funding underpins key research programs such as new solar cells being developed by the University of NSW that use relatively abundant elements to generate electricity.
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| PM Malcolm Turnbull and Environment Minister Greg Hunt at the launch of the Clean Energy Innovation Fund in March. Photo: Don Arnold, Getty |
Until the act is amended, the board must pursue the "true and proper purpose" of its establishment by the Labor Gillard government to increase the supply of renewables and assume its $1.3 billion remains, said former ARENA chairman, Greg Bourne.
"All governments signal their will but not all governments get their way," Mr Bourne said.
Labor's election plan attacked the Turnbull government for removing ARENA's grant funding "to support the next big idea". It also pledged to work with the new board based on the agency's "original intent".
The Turnbull government says ARENA will have $130 million to offer grants, although $100 million is already earmarked for large-scale solar plants.
Under the Coalition's proposed Clean Energy Innovation Fund, projects would need to repay loans carrying an interest rate 1 per cent above the government's long-term borrowing rate.
As reported by Fairfax Media, the move prompted more than 60 leading scientists to write to the PM decrying the government's decision last month to end grants from ARENA.
Kane Thornton, head of the Clean Energy Council, said it was "critical" that ARENA and its partner body, the Clean Energy Finance Corporation "continue in the future with the necessary capability and funding in the form of debt, equity and capital grants for a range of exciting new technologies".
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