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

2. 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

3. 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

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

5. 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

6. ACRE’s role in the innovation chain6

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

14. For more information
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