Aussie Governments Desperately Pump Priming their Inexperienced Vitality Revolution? – Watts Up With That?

Essay by Eric Worrall

What if all of the personal cash they’ve modelled fails to indicate up?

$500m to ascertain Powering Australia know-how fund by means of the CEFC

 23 November 2022 4:02pm

The Australian Authorities is investing $500 million within the Powering Australia Expertise Fund to assist companies progress progressive initiatives and applied sciences to cut back emissions.

This funding can be offered to the Clear Vitality Finance Company (CEFC) and can enhance commercialisation of progressive clear vitality applied sciences.

The fund goals to leverage off one other $500 million from the personal sector. It’s going to embrace a ‘progress capital’ providing for clear vitality know-how companies trying to develop.

Via amendments to the Clear Vitality Finance Company Act, as a part of a Treasury Modification Invoice, the $500m can be added to the CEFC Particular Account and the small print of the fund can 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 slightly extra apparent about it.

‘Perilous journey forward’ beneath Victoria’s vitality overhaul

Patrick Durkin and Angela Macdonald-Smith
Oct 21, 2022 – 4.54pm

Clear vitality buyers have warned of an funding drought and huge vitality customers say their survival can be threatened until the Victorian Labor authorities will get its radical plan to revive state possession of electrical energy provide precisely proper.

Huge business fears they are going to be slugged with increased costs and be pressured to tackle extra danger beneath the plan by a re-elected Andrews authorities to revive the State Vitality Company to take a position, personal and retail renewable energy.

The fears voiced by the group representing firms reminiscent of Brickworks and Bluescope Metal got here as main renewables buyers mentioned they gained’t make investments the tens of billions of {dollars} required to satisfy Victoria’s proposed 95 per cent renewables goal for 2035 if they’re deprived in any method in opposition to the brand new state participant.

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Personal buyers might face being squeezed out of recent funding in vitality beneath 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 damaging” for main suppliers AGL Vitality and Origin Vitality.

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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 hearth with rubber bullets on unarmed protestors throughout the Covid lockdowns.

My query, if renewables are such a sexy funding, why is there an ongoing want for State and Federal governments to maintain pump priming the pot with taxpayer’s cash?

In my view the determined political effort to pump prime the inexperienced revolution is powerful proof that the inexperienced vitality revolution engine is refusing to begin.

Because the Vestas and Siemens graphs on the prime of the web page present, renewable vitality funding isn’t precisely hovering. Vestas closed three turbine manufacturing factories in 2021.

That inexperienced funding stoop might 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 method renewables can prosper is that if they really are cheaper than coal. Do I would like a /sarc tag?

Holdouts like Australia and California would possibly stumble alongside for some time, burning down their kids’s future in a futile try to understand their inconceivable 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 all the way down to Earth.

I count on to see quite a lot of deserted wind farms and photo voltaic farms within the subsequent decade. Please submit any hyperlinks to images you could have personally taken in feedback, together with an outline of the placement within the picture. Please make it clear in case you are completely satisfied for me to make use of the images. I’d like to make use of such images, with acknowledgement, in future WUWT articles concerning the demise of the renewable business.

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