Australian PM Morrison pledges $685m for clean energy production


FE Team | Published: October 30, 2019 13:57:45 | Updated: November 04, 2019 12:24:14


File Photo (AAP)

Australian Prime Minister Scott Morrison has announced a boost in funding for clean energy production in order to lower power prices and avoid blackouts.

Morrison said on Wednesday that the CEFC would receive an extra 685 million US dollars to accelerate the development of next generation electricity production and upgrade the transmission network.

The funding is designed to unlock private sector investment by backing pumped hydro, battery and gas projects, as well as upgrade storage and transmission infrastructure, reports Xinhua.

"This is yet another initiative by our government taking more action to bring power prices down and keep the lights on," said the prime minister.

"We're delivering immediate relief through our new price safety net and banning sneaky late payment fees but we've also got our eye to the future with the projects this new fund will back.

"Our work to date and this new initiative will help deliver an energy system that isn't a roadblock to businesses growing and employing more people and that isn't stinging family hip-pockets."

According to The Australian on Wednesday, the boost in funding, which cannot be used for new or upgraded coal fired projects, was approved after the government identified a lack of investment in "dispatchable generation" and the need to combat future energy pressures.

Minister for Energy and Emissions Reduction Angus Taylor said "sufficient reliable generation capacity" was critical in responding to high-demand periods, which are expected to put pressure on the Victorian and New South Wales grids as coal-fired power stations are phased out.

"It is no secret that the National Electricity Market is under pressure. This fund is designed to tackle that and is part of a suite of initiatives that the government is delivering to ensure when people flick the switch, the lights come on and stay on," Taylor said.

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