The Australian Government will commit a further $652.5 million over four years to establish a Renewable Energy Future Fund to support Australia’s response to climate change.

The Fund will provide additional support:

- for the development and deployment of large and small scale renewable energy projects in geothermal, solar and wave energy

- to enhance take-up of industrial, commercial and residential energy efficiency

The Fund will include partnerships between the Government and the private sector to make critical early stage investments to leverage private funds to support the commercialisation of renewable technologies.

The Fund will form part of the Government’s expanded $5.1 billion Clean Energy Initiative, which includes the $2 billion Carbon Capture and Storage Flagships Program and the $1.5 billion Solar Flagships Program announced in last year’s budget.

The Renewable Energy Future Fund will be delivered through a number of departments and agencies, with the Department of Climate Change and Energy Efficiency co-ordinating Fund priorities and progress.

All funding resulting from the deferral of the Carbon Pollution Reduction Scheme, as well as some existing departmental funding from within the Climate Change and Energy Efficiency portfolio, will be used to offset the cost of the Fund.

A further $110.5 million will be invested from existing renewable energy programs in:

- Australian Centre for Renewable Energy funding for solar projects under the Renewable Energy Demonstration Program

- $32 million for CS Energy to build a 23 MW solar boost to coal-fired turbines at Kogan Creek, near Chinchilla in western Queensland

- $60 million for N.P. Power to build a 40 MW concentrated solar thermal demonstration plant at Whyalla, South Australia, using Australia's own 'Big Dish' technology

Investment will also be made into research into advanced solar energy technologies, solar photovoltaics and solar thermal. Australia has joined the International Renewable Energy Agency (IRENA) in June 2009 and has committed $5.6 million over four years to support the forum.

Australia will also become a full member of the International Partnership for Energy Efficiency Cooperation, an initiative of the G8 Energy Ministers’ meeting in May 2009.