The Australian government has proposed new legislation empowering the Australian Renewable Energy Agency (ARENA) to fund non-renewable technologies such as carbon capture and storage (CCS) and blue hydrogen.
ARENA, according to Climate Change and Energy Minister Chris Bowen, plays a critical role in supporting Australia’s energy transformation and achieving the 43 percent carbon reduction target by 2030.
In accordance with the Australian Renewable Energy Agency Amendment (Powering Australia) Regulations 2022, the agency will be tasked with maximizing the use of renewable energy.
Bowen stated that Arena would be able to supply more renewable energy to Australian consumers and companies as a result of the new legislation.
“The best way to put downward pressure on energy prices is to ramp up investment in renewables and that is exactly what we are doing. This government is delivering on the Powering Australia plan that we took to the election, which included a major boost to renewable energy supplies to help create jobs, reduce emissions and revitalise Australian industry.
“These regulatory changes will help Arena work with industry on accelerating electrification as well as increasing energy efficiency that will support the overall transition to renewables.”
Bowen stated that the decarbonization of the economy will necessitate large-scale electrification, which may not initially be powered completely by renewable energy, but will rely more on renewable energy over time.
He stated that the electrification of industrial processes in the food manufacturing and mining industries will help the phasing out of fossil fuel technologies as well as new infrastructure like electric vehicle chargers.
Energy efficiency technologies minimize energy demand, hence lowering consumer costs and allowing the system to incorporate more renewable energy.