Australian Renewable Energy Agency Explained

Agency Name:	Australian Renewable Energy Agency (ARENA)
Type:	Independent statutory authority
Jurisdiction:	Government of Australia
Employees:	90 (approx)
Minister1 Name:	Chris Bowen
Minister1 Pfo:	Minister for Climate Change and Energy

The Australian Renewable Energy Agency (ARENA) is an independent agency of the Australian federal government, established in 2012 to manage Australia's renewable energy programs, with the objective of increasing supply and competitiveness of Australian renewable energy sources.

History

The Australian Renewable Energy Agency (ARENA) resulted from negotiations within the Australian parliament under the Gillard government (June 2010–June 2013), with the intention of providing more secure funding for renewable energy programs in the context of political changes.^[1]

Legal establishment came with the passing of the Australian Renewable Energy Agency Act 2011 (ARENA Act),^[2] which passed parliament in November 2011 with the support of the Australian Greens and the Liberal and National Coalition opposition as well as the governing Labor Party. ARENA was established in 2012 as an independent statutory authority to manage the government's renewable energy programs,^[3] and commenced operations on 1 July 2012.

While ARENA was created as part of the "Clean Energy Future" package together with the Clean Energy Finance Corporation, these are separate institutions. ARENA has consolidated various earlier renewable programs and research and development projects from the Australian Centre for Renewable Energy, the Australian Solar Institute, and the former Department of Resources, Energy and Tourism.^{[1] [4] [5]}

The Solar Sunshot program, announced by prime minister Anthony Albanese in March 2024, is a A$1 billion fund that delivers grants and production credits to manufacturers of solar panels, to increase the number made in Australia. (99% are imported.) The scheme will be run by ARENA. Provision will also be made to manufacturers of other components needed to create renewable energy, and the scheme is part of a plan to provide jobs for those workers currently employed in the coal industry. The new industries will be created in Portland and the Latrobe Valley in Victoria, and Wollongong and the Hunter Region in NSW.^[6]

Funding

ARENA was established with a total funding allocation of $3.2 billion out to 2020. In the 2013 budget the Labor government deferred $370 million of the agency's funding, extending the timeline to 2022. The subsequent Abbott government proposed to cut $435 million from ARENA's budget, followed by an additional $40 million, but has affirmed its support for the agency.^{[7] [8]}

Funding programs

ARENA carries out its mission via the following funding programs:

• Advancing Renewables Program - Development, demonstration and pre-commercial deployment projects^[9]
• Research and Development - Renewable energy technologies that will increase commercial deployment within Australia^[9]
• Renewable Energy Venture Capital Fund - fosters skills and management capability. It encourages investment in innovative Australian renewable energy companies to strengthen their chance of success^[9]
• Innovation Fund - Emerging Australian technologies & businesses that can accelerate Australia's transition to a renewable energy economy^[9]

Investment priorities and projects

ARENA has listed its three investment priorities and addresses key areas that can help create a smooth transition to renewable energy:^{[10] [11]}

1. Integrating renewables into the electricity system
2. Accelerating hydrogen
3. Supporting industry to reduce emissions

ARENA has committed to hundreds of projects (investment billion).^[12] These include:

• Battery storage

Australia's first grid scale batteries in South Australia and Victoria^{[13] [14] [15]}

• Bioenergy and waste-to-energy: feasibility of constructing a pre-commercial biofuel plant^[16] and James Cook University developing a macroalgae to biofuels project to provide a blueprint for the development and production of high energy algal fuels^[17]
• Demand response

A three-year trial of ten pilot demand response projects to curb energy use during extreme peak demand periods^[18]

• Distributed generation

first trials of virtual power plants^{[19] [20] [21]}

• Electric vehicle

fast charging networks for electric vehicles^[22]

• Green hydrogen production,^[23] with funding provided in March 2024 for a feasibility study into the East Kimberley Clean Energy Project, in which a 900-megawatt solar farm at Lake Argyle, Western Australia, would create green hydrogen gas. This would be piped north to Wyndham, where it would be converted into ammonia and exported to Asia. Total output is estimated at 250,000 tonnes per annum.^{[24] [25]}
• Photovoltaic power station

Australia's first large scale off grid renewable projects including microgrids, solar farms and hybrid projects to power mines and remote communities^{[26] [27] [28] [29]}

• Pumped-storage hydroelectricity

Feasibility studies into pumped hydro projects across Australia including Snowy 2.0, Hydro Tasmania's Battery of the Nation initiatives and a proposed seawater pumped hydro plant at Cultana, SA^{[30] [31] [32] [33]}

• Solar photovoltaics

research into techniques for obtaining high photovoltaic performance from poor-quality silicon^[34] utility-scale solar photovoltaic stations in Nyngan, NSW^[35] and Broken Hill, New South Wales^[36]

• Solar thermal

Integration of solar-thermal integration with coal-fired power generation at the Kogan Creek Solar Boost Project,^{[37] [38]} contribution to a feasibility study into local solar thermal power generation in Port Augusta, SA^[39]

• Wave energy

A 1MW demonstration generator for installation off the coast of Port MacDonnell, SA^{[40] [41] [42]}

• Waste-to-energy plant: East Rockingham Waste to Energy and Kwinana Waste to Energy Plants^{[43] [44]}

See also

• 100% renewable energy
• Carbon pricing in Australia
• Distributed energy resources
• International Renewable Energy Agency
• Renewable Electricity and the Grid
• Anti-nuclear movement in Australia
• Renewable energy in New Zealand

Notes and References

1. News: Jeremy Thompson . Greens hail win on renewables agency . ABC Online. Australia. 8 July 2011 . 24 January 2014 .
2. Web site: Australian Renewable Energy Agency Act 2011, Act No. 151 of 2011 as amended. . 2012 . ComLaw. Australian Government . 18 February 2014.
3. Web site: About ARENA . Australian Renewable Energy Agency . 17 February 2014.
4. Web site: History . arena.gov.au . Australian Renewable Energy Agency . 23 February 2014.
5. News: Agency to achieve renewable energy target . The Sydney Morning Herald. 12 October 2011 .
6. Web site: Foley . Mike . Australian made solar panels: Solar Sunshot program aims to tap into renewables boom . . 27 March 2024 . 28 March 2024.
7. News: Tom Arup . Abbott government to cut $435m from renewable energy agency. Sydney Morning Herald . 13 November 2013 .
8. News: Dugald Murray . Waging war on the environment does not add up . Sydney Morning Herald . 20 December 2013 .
9. Web site: Funding . Australian Renewable Energy Agency . 9 September 2019.
10. Web site: General Funding Strategy and Investment Plan . Australian Renewable Energy Agency . 12 October 2023 . 23 March 2024.
11. Web site: Strategic priorities . Australian Renewable Energy Agency . 14 September 2023 . 23 March 2024.
12. Web site: Projects . Australian Renewable Energy Agency . 22 March 2024 . 23 March 2024.
13. Web site: ARENA to provide $25 million to jointly fund Victoria’s first large-scale, grid-connected batteries . ARENA . 22 March 2018 . ARENA . 11 September 2019 .
14. Web site: Victoria’s first of two large-scale, grid-connected batteries reaches completion in Ballarat . ARENA . 23 October 2018 . ARENA . 11 September 2019 .
15. Web site: Grid scale battery powers up in Gannawarra . ARENA . 16 November 2018 . ARENA . 11 September 2019 .
16. Web site: Australian Government awards $10 million to Licella, Muradel as accelerator towards commercial scale . Jim Lane . 1 March 2013 . Biofuels Digest . 12 March 2014.
17. Web site: Australian government commits $20M to advanced biofuels R&D . Biofuels Digest . 4 March 2014 . https://web.archive.org/web/20140324094645/http://www.biofuelsdigest.com/bdigest/2012/02/24/australian-government-commits-20m-to-advanced-biofuels-rd/ . 24 March 2014 . dead .
18. Web site: AEMO and ARENA demand response trial to provide 200 megawatts of emergency reserves for extreme peaks . ARENA . 11 October 2017 . ARENA . 11 September 2019 .
19. Web site: AEMO to trial integrating Virtual Power Plants into the NEM . ARENA . 5 April 2019 . ARENA . 11 September 2019 .
20. Web site: Simply Energy to build 8MW virtual power plant in Adelaide . ARENA . 28 March 2018 . ARENA . 11 September 2019 .
21. Web site: Battery storage set to strengthen South Australian grid . ARENA . 16 February 2017 . ARENA . 11 September 2019 .
22. Web site: Renewables to drive ultra-rapid electric vehicle network . ARENA . 22 October 2018 . ARENA . 11 September 2019 .
23. Web site: Green hydrogen innovation hub to be built in WA . ARENA . 3 July 2018 . ARENA . 11 September 2019 .
24. Web site: Marshall . Alys . Murphy . Hannah . Outback Australia enters green hydrogen race with multi-billion-dollar project given government backing . ABC News . 18 March 2024 . 23 March 2024.
25. Web site: WA hydrogen project is almost four times larger than Whyalla's . InDaily. David . Simmons . 19 March 2024 . 23 March 2024.
26. Web site: Off-grid renewable solution moves closer to fruition . ARENA . 13 August 2014 . ARENA . 11 September 2019 .
27. Web site: Another giant step for large-scale solar at Broken Hill . ARENA . 12 October 2015 . ARENA . 11 September 2019 .
28. Web site: ARENA selects 22 large-scale solar projects to take next step . ARENA . 14 January 2016 . ARENA . 11 September 2019 .
29. Web site: Moree Solar Farm starts feeding into the grid . ARENA . 1 March 2016 . ARENA . 11 September 2019 .
30. Web site: Pumped hydro storage could breathe new life into old mines . ARENA . 18 December 2015 . ARENA . 11 September 2019 .
31. Web site: One step closer for giant Kidston solar and pumped hydro . ARENA . 17 November 2017 . ARENA . 11 September 2019 .
32. Web site: Snowy 2.0 feasibility study released . ARENA . 21 December 2017 . ARENA . 11 September 2019 .
33. Web site: Tarraleah hydropower redevelopment powers ahead . ARENA . 21 June 2018 . ARENA . 11 September 2019 .
34. Web site: Australian PV engineer takes top prize for cutting cost of solar power . Geraldine Chua . 22 January 2014 . Infolink . 20 February 2014 .
35. Web site: Construction starts on Nyngan solar plant . 29 January 2014 . ABC News . Australian Broadcasting Corporation . 20 February 2014 .
36. News: Vassilios Agelidis . Big solar could boost Australia’s power, if renewables funding stays . . 14 March 2014 . 20 February 2014 .
37. Web site: Kogan Creek Solar Boost project . Australian Renewable Energy Agency . 23 February 2014 . https://web.archive.org/web/20140308104033/http://arena.gov.au/project/kogan-creek-solar-boost-project/ . 8 March 2014 . dead .
38. Web site: World's biggest solar booster project delayed by "difficulties" . Giles Parkinson . 6 February 2014 . Renew Economy . 23 February 2014.
39. News: Solar thermal progress . The Transcontinental . Australia . 22 January 2014. 17 February 2014 .
40. News: Federal funding for wave energy venture . ABC News . Australia . Australian Broadcasting Corporation . 4 July 2012 . 16 February 2014 .
41. Web site: Port MacDonnell wave energy project 'on track' . 12 June 2013 . ABC News . Australian Broadcasting Corporation . 16 February 2014 .
42. Web site: Oceanlinx wave of success . 25 October 2013 . Australian Renewable Energy Agency . 16 February 2014 .
43. News: Young . Emma . 23 January 2020 . Perth closing in on landfill-free future as global renewables giant buys into waste-to-energy . . 27 August 2021.
44. News: Young . Emma . 18 October 2018 . Perth glimpses end of landfill age as Kwinana waste plant build begins . . 27 August 2021.