The government has committed $1 billion as part of its plan to boost grid reliability and guarantee a fair deal on energy for Australian households, businesses, and industries.
According to a report on the Energy Magazine website, the Federal Government will build a $1 billion Grid Reliability Fund. The fund is intended to back up its investment in new energy generation, storage, and transmission infrastructure. This also includes qualified projects shortlisted under the Underwriting New Generation Investments (UNGI) program.
CEFC to Manage the Fund
The Clean Energy Finance Corporation (CEFC) will administer the fund. The CEFC has been drawing on the energy and financial markets expertise by investing over $7 billion in clean energy since 2012.
The eligible investments to the fund include energy storage projects including pumped hydro and batteries, transmission and distribution infrastructure, and grid establishing technologies.
Furthermore, there would be additional announcements regarding individual projects as the government reaches agreements with particular project proponents.
According to Angus Taylor, the Minister for Energy and Emissions Reduction, the fund would guarantee enough reliable generation capacity is available to satisfy periods of high demand.
He said, “The Grid Reliability Fund builds on our strong action to stabilize the grid and get the energy generation balance right, to deliver affordable, 24/7 reliable power.”
He added, “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.”
The report also cited Finance Minister Mathias Cormann stating that the Government would update the CEFC enabling legislation to guarantee that the Grid Reliability Fund could assist suitable projects.
Minister Cormann expressed, “The Gird Reliability Fund will provide the Clean Energy Finance Corporation with additional capacity to support affordability, reliability, and security of supply, which ultimately puts downward pressure on energy prices.”
The $1 billion fund will prioritise investments in jurisdictions where state and territory governments are cooperating to have agreed reliability goal. It will also ensure that enough reliable generation capacity is available in order to match points of high demand.
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