Commercialising Renewable Energy Technologies Eco Innovation Forum 26 May 2011 Mary O’Kane, Chair, Australian Centre for Renewable Energy

Australian Centre for Renewable Energy (ACRE) ACRE is part of the Government’s $5 billion Clean Energy Initiative ACRE has three parts: an independent, statutory advisory board – the ACRE Board a statutory Chief Executive Officer who is an ex-officio member of the ACRE Board staff of the Department of Resources, Energy and Tourism

Functions of the ACRE Board Provide advice to the Minister in relation to renewable energy (RE) technologies including: strategies to fund and promote RE technologies funding of promising projects and measures the management of programs and the improvement of existing program delivery provision of venture capital funding priority areas for government support establishing links with state & territory agencies and the private sector to develop strategies for stimulating investment in RE technologies To assess and advise on RE projects and measures 3

ACRE Board’s Vision National energy markets delivering competitively-priced renewable energy sourced from a diverse range of technologies

ACRE’s Objectives Funds the development, commercialisation and deployment of renewable energy and enabling technologies to improve their competitiveness Supports technologies that will deliver energy from renewable sources at commercial prices Moves projects along the innovation path with a focus on pilot and demonstration of technologies especially in geothermal, solar, wave, bioenergy, renewable-fossil hybrids & enabling technologies

ACRE’s role in the innovation chain 6

The ACRE Approach Establishing early and ongoing engagement with proponents of prospective projects Adopting an outcome-oriented strategy which is proactive, expert, flexible, transparent, merit based, targeted and patient Prioritising maximising public value above breadth of coverage of technologies while encouraging sufficient diversity of technologies in development

Supporting the early stage development of Australian renewable energy technologies Supporting the piloting, demonstration and early-stage commercial deployment of renewable energy in Australia Supporting critical enabling technologies and systems Synthesising, disseminating and utilising knowledge

ACRE Programs Current programs cover solar, geothermal, biofuels, ocean, storage, integration & hybrid projects New initiatives: Strategic Directions released 5/4/11 Renewable Energy Venture Capital Fund Emerging Renewables Program Australian Biofuels Research Institute Conducting regional and remote renewable energy studies 9

Renewable Energy Venture Capital Fund The $100 million REVC Fund will provide venture capital and active investment management to encourage the development of Australian companies that are commercialising renewable energy technologies Applications to establish funds under the program are now open Aims to address a major challenge facing early stage companies – access to capital Designed to provide critical equity investments in seed, start-up early expansion stages with a maximum of two fund managers Will be operational in 2011-12

REVC Program Parameters Up to two fund managers to be selected able to support larger scale investments provide for follow on funding Term of fund nature of renewable energy requires longer time horizons fund life 10 years to 15 years Ability to invest in larger and listed companies Revolving fund

REVC Program Parameters Pooled fund - (Traditional VC model) - Commonwealth and private investors invest at the fund level Deal-stage model – coinvestment sourced by fund manager for individual deals Two distribution models : pro-rata distribution to all investors private sector investors receive priority The Commonwealth may pay its share of the management fees at an early stage, where private investors commit to pay the management fees at a later stage

Emerging Renewables Program $100 million for flexible and integrated program Two funding streams: Projects - to progress renewable energy and enabling technologies as they move through the innovation chain and to lower the cost of renewable energy in Australia Measures – for renewable energy industry capacity building and skills development Program launch and call for applications mid 2011

For more information Visit www.acre.gov.au Email acre@ret.gov.au