ARENA
Presentation to ANCRE – Australia’s energy future
18 September 2012
www.arena.gov.au
1. Renewable Energy – A Global Growth Industry
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Global Investment in Renewables
$ billions
Annual Renewable Energy Investment
Global new investment in renewable
energy increased 17% in 2011 to a
new record of US$257 billion.
This chart shows the increase in
investment in renewable energies
including offshore wind, solar,
biomass and waste, biofuels and heat
from 2005 and expected investment
increases to 2030.
Source: Bloomberg New Finance
(2011)
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2. The Australian Renewable Energy Landscape
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Renewables in in
Australia’s
energy
mix mix
Renewables
Australia’s
energy
Australian Electricity Generation 2009-10
Percentage total of Australian Electricity Generation for
2009-10
Electricity generation from:
Black coal 52%
Brown coal 23%
Gas 15%
Renewable energy 9%
Renewable Electricity Generation
Hydro 63%
Wind 25%
Bioenergy 11%
Solar Photovoltaic 1%
Source: ABARES, Australian Energy Statistics (2011)
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Location of Renewable Energy Capacity
Map of Australia showing the
location of Renewable Energy
generators operating plants
with capacity of more than 30
kilowatts. The map shows the
locations of bagasse, landfill
methane, solar, hydro, wind,
sewerage methane generating
plants.
Source: Bureau of Resources
and Energy Economics (2012)
Energy in Australia 2012
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State of the Industry – Profile
Revenue
Annual Growth
07-12
$2 billion
Table showing a profile of the
renewable energy industry in
Australia.
10.8 per cent
Revenue is worth $2 billion.
Annual Growth rate from 2007
to 2012 is 10.8 per cent.
Employs 13,150 people.
Employment
13,150 people
Business in operation: 260.
Source: IBIS World (2011)
Renewable Energy Market
Research
Businesses
260
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Australia’s Renewable Resources: Solar
Map of Australia showing the
annual average solar radiation
and areas of existing solar
power greater than 100 kW and
less than 2000 kW.
Source: Geoscience Australia
and ABARE (2010) Australian
Energy Resource Assessment.
www.arena.gov.au
Australia’s Renewable Resources: Solar
Map of Australia showing the
annual average solar radiation
and areas of existing solar
power greater than 100 kW and
up to 2000 kW.
Source: Geoscience Australia
and ABARE (2010) Australian
Energy Resource Assessment.
www.arena.gov.au
Australia’s Renewable Resources: Wind
Map of Australia showing wind
farms in operation.
The map indicates areas of
wind speeds (m/second) as well
as transmission lines. Some of
the world’s best wind resources
are along the south-western,
southern and south-eastern
margins.
Source: Geoscience Australia
and ABARE (2010) Australian
Energy Resource Assessment.
Source: Geoscience Australia and ABARE (2010) Australian Energy Resource Assessment
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Australia’s Renewable Resources: a Track Record of
Innovation
Source: Professor Stuart Wenham, China: Threat or Opportunity? (2012)
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Levelised
Costs
in 2012
and 2020 - 2012
LCOEs
forEnergy
renewable
energy
technologies
$/MWhr
2012
Chart showing the
Levelised Costs of Energy
in 2012 and in 2020. This
chart includes CCG,
Wind, Solar and Bagasse.
2020
2020
Source: BREE, Australian
Energy Technologies
Assessment 2012
2012
BREE, Australian Energy Technologies Assessment 2012
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3. ARENA’s Role
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The Basics
ARENA - objectives
$3.2 billion in funding
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Strong Foundations
This picture depicts ARENA’s
strong foundations from
building on the legacy of ACRE
and ASI, continuing to support
projects underway and note the
lessons from their delivery.
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Doing Business
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4. Funding Strategy
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Consultation Process
Greg Bourne, Chair of the ARENA Board,
released the consultation draft of ARENA’s
General funding strategy on 26 July 2012.
The draft strategy has been developed and
released to provide stakeholders with an
opportunity to help shape how ARENA will
design and implement its programs over
the next three years. The consultation
process has involved a series of meetings
held with ARENA Board, CEO, staff and
stakeholders. Meetings were held in
Melbourne, Perth and Brisbane as well as
additional meetings. Approximately 70
submissions were received on the draft
general funding strategy.
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Consultation Findings
 Stakeholders looking to ARENA for strategic leadership in addressing matters of policy and
coordination across jurisdictions, especially with the Clean Energy Finance Corporation
 Decisiveness and speed in decision-making
 A flexible and innovative approach to the provision of financial assistance
 Genuine partnership
 Embrace a diversity of energy solutions
 Importance of dispatchability to improve value for renewable energy
 Make returns and reinvest in the industry
 Knowledge sharing and protection of IP
 A large scale solar hub or research park
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5. Next Steps
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Work Priorities
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Summary
 Significant international investment
…and local opportunity
 ARENA is a key part to unlocking commercial financing
 ARENA has an open approach - contact Greg Bourne or Ivor
Frischknecht
arena@arena.gov.au
www.arena.gov.au