ARENA noted in a statement today applauding the Origin contract with Moree that “not one” of the 22 solar projects on its shortlist would go ahead without grant funding.
Ironically, environment minister Greg Hunt said the Moree solar power purchase agreement “demonstrates that a developer can finance and build a large-scale solar plant in Australia without first securing a contract to sell the electricity generated by the plant.”
“The agreement is a clear sign that the innovative approaches to financing projects are being developed and deployed since we fixed the Renewable Energy Target after Labor’s shambles.”
But ARENA itself pointed out that the Moree solar project would not have been built without the grant funding. And clean energy groups have raised concerns that the ARENA cuts will hold back future solar plants and developments in other technologies.
They pointed out that projects such as Carnegie Wave Energy’s world-first multiple array wave energy project off Garden Island would not have proceeded without grant funding.
Hunt sought to deflect that criticism last week. When challenged on Sky News last week about the defunding of ARENA’s $1.3 billion, Hunt replied:
“The Australian Conservation Foundation, the Investors Group on Climate Change, the Climate Institute, have all welcomed it.”
Yes, they welcomed the government’s decision to drop their three-year-old plans to scrap the CEFC, but here’s what they said about the proposal to de-fund ARENA and remove its grants-making ability:
The ACF: ““While we welcome this new clean energy fund, the removal of the Australian Renewable Energy Agency’s grant-making function and the reported decision to fund the (new) body with money reserved for the CEFC is disappointing and undermines ARENA’s role.”
The Climate Institute said: “It would be a big mistake to lose ARENA’s grant making lever. In addition, the government will have to deal with the legislative fact that it should be putting $1.3 billion into that task.”
In a statement issued on Thursday in response to the Queensland-ASC statement, Hunt accused the Palaszczuk Government of being “utterly dishonest”.
“We are continuing the large scale solar grants round – in which Queensland has the lion’s share of shortlisted projects.”
A spokesman for Bailey said the Queensland government did not dispute that, but was concerned about the lack of future grant funding that may be required.
“It’s disappointing that Labor and the Australian Solar Council are misleading the Australian public,” Hunt said. “The changes we have announced will drive innovation and create the jobs of the future, while delivering a financial benefit from the investment of public money.”
