Essay by Eric Worrall
What if all of the personal cash they’ve modelled fails to indicate up?
$500m to ascertain Powering Australia expertise fund by means of the CEFC
23 November 2022 4:02pm
The Australian Authorities is investing $500 million within the Powering Australia Know-how Fund to assist companies progress revolutionary tasks and applied sciences to cut back emissions.
This funding will likely be offered to the Clear Power Finance Company (CEFC) and can increase commercialisation of revolutionary clear vitality applied sciences.
The fund goals to leverage off one other $500 million from the personal sector. It is going to embrace a ‘development capital’ providing for clear vitality expertise companies seeking to develop.
By amendments to the Clear Power Finance Company Act, as a part of a Treasury Modification Invoice, the $500m will likely be added to the CEFC Particular Account and the small print of the fund will likely be included within the CEFC’s funding mandate.
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Learn extra: https://www.vitality.gov.au/news-media/information/500m-establish-powering-australia-technology-fund-through-cefc
State Governments are additionally desperately shovelling cash into the pot, although in Victoria’s case, they’re being a bit of extra apparent about it.
‘Perilous journey forward’ underneath Victoria’s vitality overhaul
Patrick Durkin and Angela Macdonald-Smith
Oct 21, 2022 – 4.54pmClear vitality traders have warned of an funding drought and enormous vitality customers say their survival will likely be threatened except the Victorian Labor authorities will get its radical plan to revive state possession of electrical energy provide precisely proper.
Massive business fears they are going to be slugged with larger costs and be pressured to tackle extra threat underneath the plan by a re-elected Andrews authorities to revive the State Power Company to take a position, personal and retail renewable energy.
The fears voiced by the group representing firms akin to Brickworks and Bluescope Metal got here as main renewables traders stated they received’t make investments the tens of billions of {dollars} required to fulfill Victoria’s proposed 95 per cent renewables goal for 2035 if they’re deprived in any manner in opposition to the brand new state participant.
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Personal traders may face being squeezed out of latest funding in vitality underneath the plan, which the business tremendous sector – which might co-invest with the SEC – lined as much as again. Morgan Stanley labelled the plan “a internet unfavorable” for main suppliers AGL Power and Origin Power.
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Learn extra: https://www.afr.com/firms/vitality/perilous-journey-ahead-under-victoria-s-energy-overhaul-20221021-p5brro
Victoria’s state premier is Dan Andrews, who infamously claims to have by no means ordered police to open fireplace with rubber bullets on unarmed protestors in the course of the Covid lockdowns.
My query, if renewables are such a lovely funding, why is there an ongoing want for State and Federal governments to maintain pump priming the pot with taxpayer’s cash?
For my part the determined political effort to pump prime the inexperienced revolution is robust proof that the inexperienced vitality revolution engine is refusing to begin.
Because the Vestas and Siemens graphs on the high of the web page present, renewable vitality funding isn’t precisely hovering. Vestas closed three turbine manufacturing factories in 2021.
That inexperienced funding droop may very well be about to get lots worse. US Republican Jim Banks (R-IN) simply promised to defund Biden’s inexperienced revolution.
With out authorities cash, the one manner renewables can prosper is that if they really are cheaper than coal. Do I want a /sarc tag?
Holdouts like Australia and California may stumble alongside for some time, burning down their kids’s future in a futile try to grasp their not possible inexperienced vitality dream. However in the long run they, like everybody else, will succumb. Governments can solely defy the legal guidelines of economics for thus lengthy, earlier than the gravity of economic misery brings their inexperienced fantasies crashing again right down to Earth.
I count on to see lots of deserted wind farms and photo voltaic farms within the subsequent decade. Please put up any hyperlinks to pictures you might have personally taken in feedback, together with an outline of the situation within the photograph. Please make it clear if you’re completely happy for me to make use of the pictures. I’d like to make use of such pictures, with acknowledgement, in future WUWT articles in regards to the dying of the renewable business.
