Budget cuts will hinder clean energy development in Australia

The federal government’s decision to cut funding to clean energy projects and reports is disappointing, clean energy industry advocates have said.

Matthew Warren, CEO of the Energy Supply Association of Australia (esaa), said it is crucial not to put off clean energy technology research if we are to deliver an affordable and efficient energy transformation.

The 2013 Federal Budget has cut $662 million from carbon capture and storage and low-emission coal projects, while another $370 million in funding for the Australian Renewable Energy Agency (ARENA) has been deferred beyond the forward estimates.

“By the government’s own admission, we are likely to need a suite of energy solutions at our disposal in order to deliver the clean energy transformation as quickly and as painlessly as possible,” Warren said.

“Research remains one of the most vulnerable parts of this clean energy supply chain. If governments drop the ball, no one else is going to pick it up until a new technology is able to be banked in the marketplace.”

Clean Energy Council Deputy Chief Executive Kane Thornton said the postponement of ARENA funding could lose renewable energy investment offshore.

“This doesn’t send a good message to those companies wanting to develop cutting-edge renewable energy technologies in Australia, and could see those companies take their business elsewhere,” Thornton said.

“It was also disappointing to see almost $260 million in funding scrapped for large-scale solar research and the Low Carbon Communities grants that were designed to improve energy efficiency for communities and vulnerable consumers and help them save on their power bills.”

However, Thornton welcomed the decision to continue $1.2 billion in funding for the Clean Technology Program, which includes $160 million in funding that has been brought forward to help companies become more energy efficient.