Australia
Narrative
In joining Mission Innovation, Australia pledged to double government clean energy research and development investment by 2020. Australia supports transparency and early action in setting and declaring baselines.
The baseline we nominated is the 2015 figure reported to the International Energy Agency (IEA) for combined research and development into the following focus areas: renewable energy, energy storage, fuel cells, smart grids, energy efficiency, nuclear and carbon capture and storage. Australia’s total government expenditure in 2015 in these focus areas was approximately AUD $104 million. This excludes research and development spending on fossil fuels other than carbon capture and storage, electricity transmission and distribution networks, recoupable investments made by the Clean Energy Finance Corporation (CEFC), and expenditure on later stage deployment.
The Australian Government recognises that supporting the development, demonstration and deployment of clean energy technologies will help transition the world’s energy sector to low emissions over the course of the century. As the Prime Minister of Australia, the Hon Malcolm Turnbull MP stated during the 2015 United Nations Climate Change Conference, Australia is optimistic that humanity can meet the climate change challenge.
The Australian Government’s commitment to double early stage research and development is complemented by a range of support across the broader innovation chain. On 23 March 2016, the Australian Government announced the establishment of a new AUD $1 billion Clean Energy Innovation Fund (the Fund) to support emerging technologies make the leap from demonstration to commercial deployment. The Fund will provide both debt and equity for clean energy projects such as renewable energy, energy efficiency and low emissions technologies and be jointly managed by the revitalised CEFC and the Australian Renewable Energy Agency (ARENA), drawing on their complementary experience and expertise. The Fund will be established from within the CEFC’s AUD $10 billion allocation and make available AUD $100 million a year for ten years. This is part of the Government’s strong commitment to supporting jobs and innovation through investment in clean and renewable energy in Australia. The refocused agencies will work together to provide capital investment and debt finance for Australian businesses and emerging clean energy technologies.
The proportion of Australian households (15 per cent) with rooftop solar photovoltaics (PV) is amongst the highest in the world, and there is high interest in the opportunities for development of new energy storage and battery solutions which will assist to better manage reliable and efficient delivery of electricity. Australia has an ambitious Renewable Energy Target (RET) that will double the installed large-scale renewable energy capacity in Australia by 2020 to ensure around 23 per cent of Australia’s electricity comes from renewable energy by 2020. This is expected to drive over AUD $12 billion in new investment over the next five years. The Australian Government is working with state governments, energy market institutions and industry to support the integration of renewable technologies into the grid.
The Commonwealth Scientific and Industrial Research Organisation (CSIRO) will develop a low emissions technology roadmap in 2016 which will analyse viable alternative technology pathways that could help achieve Australia’s 2030 emissions reduction target, and further emissions reductions in the years beyond. It will consider the potential role that innovative technologies, such as renewable energy, smart grids, carbon capture and storage (CCS), electric vehicles and energy efficiency, could play in Australia’s emission reduction efforts. It will also consider the role of Australian industries in potential supply chains and opportunities to develop local industries where a potential comparative advantage could exist.
Further, the Government has allocated AUD $100 million to support large-scale solar PV projects through the ARENA competitive funding round, which supports the solar PV industry in closing the current gap that exists between large-scale solar PV and other commercially competitive forms of power generation such as onshore wind energy. This builds on the AUD $21.5 million funding provided in 2014 to support 12 cutting edge solar research and development projects, ranging from enhancing existing technologies to advancing emerging technologies in solar PV, solar thermal and solar storage.
The Government has allocated AUD $25 million over the next four years, through the Carbon Capture and Storage Research Development and Demonstration (RD&D) fund, to reduce technical and commercial barriers to the deployment of large-scale CCS projects and thereby encourage industry investment in further deployment of the technology. The fund extends previous research activities to implement CCS for Australian conditions and will provide RD&D support in particular for transport and storage of carbon dioxide.
Through the Australian Research Council, the Government is funding projects that foster stronger industry and university linkages, including a research project that seeks to advance the field of heat transfer in high-temperature systems involving liquid metals, with emphasis on energy storage and solar power technologies. Through ARENA, the Government has allocated over AUD $120 million to fund residential and commercial battery storage projects and solar thermal energy storage projects in Australia, which will help to smooth out renewable energy variability, reduce peak loads, allow utilities to better manage power supply and demand, and potentially mitigate the need for network upgrades.
In December 2015 the Government announced its National Innovation and Science Agenda (the NISA agenda) which outlines how innovation and science will assist in transforming the economy following the mining boom. The Agenda builds on existing actions the Government has taken and focusses on four key pillars: culture and capital; collaboration; talent and skills; and government as an exemplar.
Announced as part of the NISA agenda, Innovation and Science Australia (ISA) will be established as an independent statutory board to provide advice to government on all science, research and innovation matters. ISA will audit the performance of the current Australian innovation, science and research system, including clean energy research, and develop a long-term 15-year strategic plan for innovation, science and research in Australia.
The Government’s new National Energy Productivity Plan sets a target of improving Australia’s energy productivity by 40 per cent between 2015 and 2030, which will drive innovation in energy efficiency technologies and lead the way in transforming our electricity network.
Australian scientists and researchers are making world-leading contributions to the development of clean energy technologies, including in solar PV, solar thermal, wave energy, and biofuels. We are committed to driving innovation and deployment of these technologies on the world stage. Australian innovation has been successfully commercialised in the global marketplace. For example, University of New South Wales photovoltaics innovation will be embedded within almost half of all new solar panels sold globally by 2020.
Our world class universities and research institutions, including the CSIRO, will continue to collaborate with our international colleagues and organisations to unlock new ideas and transitional pathways in the energy sector.
We will continue to build international partnerships to improve commercial opportunities for Australian renewable energy technology, such as the Australia-US Solar Thermal Research Initiative and the Australia-US Institute for Advanced Photovoltaics.
The Paris Agreement signals a global transition to a lower emissions economy and more climate resilient growth. The Australian Government recognises the critical role that clean energy will play in global efforts to reduce emissions, grow national economies and create the jobs of the future. Australia has invested AUD $22 million in the Private Sector Investment Development Group’s InfraCo Asia program which focuses on the development of infrastructure projects, primarily energy. Australia will also invest at least AUD $1 billion in climate finance over the next five years to reduce emissions, build resilience and support climate action consistent with economic development, including in the energy sector.
Australia will review its domestic climate policy settings in 2017 to ensure they are geared towards our 2030 target and the Paris Agreement. The review will ensure that Australia’s policy settings are calibrated to deliver on the commitment to Mission Innovation.
Baseline and Doubling Plans
- Country-Determined Baseline Year(s): 2015
- Baseline Funding Amount: AUD $104 million (USD $78 million)
- Doubling Target-Year: 2020
- Doubling Target Amount: AUD $208 million (USD $156 million)
Methodology for Determining Baseline
The baseline we nominated is the 2015 figure reported to the International Energy Agency (IEA) for combined research and development into the following focus areas: renewable energy, energy storage, fuel cells, smart grids, energy efficiency, nuclear and carbon capture and storage. Australia’s total government expenditure in 2015 in these focus areas was approximately AUD $104 million. This excludes research and development spending on fossil fuels other than carbon capture and storage, electricity transmission and distribution networks, recoupable investments made by the Clean Energy Finance Corporation (CEFC), and expenditure on later stage deployment.
Country-Definition of Clean Energy R&D Investment
Research and development in low carbon technologies, including end use energy efficiency, renewable energy, nuclear energy, electric grid technologies, carbon capture and storage, and advanced transportation systems and fuels. Investments are implemented through a number of mechanisms including cost-shared projects with the private sector, research and development activities at the National Laboratories, grants to universities, and support for collaborative research centers targeted to key energy technology frontiers.
Overview of Clean Energy R&D Focus Areas Emphasized in Mission Innovation Portfolio
Industry & buildings |
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Vehicles & other transportation |
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Bio-based fuels & energy |
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Solar, wind & other renewables |
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Nuclear energy |
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Hydrogen & fuel cells |
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Cleaner fossil energy |
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CO2 capture, utilization & storage |
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Electricity grid |
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Energy storage |
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Basic energy research |
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Indicators are for key areas of Mission Innovation R&D investment but do not imply a comprehensive representation of a country’s full R&D portfolio.
The Government’s Innovation and Science Agenda outlines how we will transform our approach to innovation and science right across the economy with major new initiatives.
“The Australian Government recognises the importance of science, innovation and technology to our future prosperity and economic security as a nation in a rapidly expanding and diversifying global economy.” Prime Minister Malcolm Turnbull, 27 October 2015.
The Australian Government’s support for clean energy extends well beyond the research and development stage, and includes a comprehensive suite of policies to drive innovation and large scale uptake across the energy supply chain.
More detail is available from the Prime Minister’s website here.
Prime Minister Turnbull on Mission Innovation:
“We do not doubt the implications of the science, or the scale of the challenge. But above all we do not doubt the capacity of humanity to meet it - with imagination, innovation and the prudence that befits those, like us, who make decisions that will affect not just our own children and grandchildren but generations yet unborn.
Here in Paris Australia supports a new – and truly global – climate agreement. It is an agreement that must drive humanity’s capacity for inventiveness and a new wave of technological advances. We firmly believe that it is innovation and technology which will enable us both to drive stronger economic growth and a cleaner environment.
We are a highly social and innovative species and so the more we share innovative technologies, the better they will become. Today Australia joins with many other countries in supporting Mission Innovation which aims to double investment in clean energy innovation over the next five years.”