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

Essay by Eric Worrall

What if all of the non-public cash they’ve modelled fails to indicate up?

$500m to ascertain Powering Australia expertise fund by means of the CEFC

 23 November 2022 4:02pm

The Australian Authorities is investing $500 million within the Powering Australia Know-how Fund to assist companies progress modern initiatives and applied sciences to scale back emissions.

This funding will likely be supplied to the Clear Vitality Finance Company (CEFC) and can enhance commercialisation of modern clear vitality applied sciences.

The fund goals to leverage off one other $500 million from the non-public sector. It can embrace a ‘progress capital’ providing for clear vitality expertise companies seeking to develop.

By amendments to the Clear Vitality Finance Company Act, as a part of a Treasury Modification Invoice, the $500m will likely be added to the CEFC Particular Account and the small print of the fund will likely be included within the CEFC’s funding mandate.

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State Governments are additionally desperately shovelling cash into the pot, although in Victoria’s case, they’re being a little bit extra apparent about it.

‘Perilous journey forward’ below Victoria’s vitality overhaul

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

Clear vitality traders have warned of an funding drought and enormous vitality customers say their survival will likely 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 greater costs and be compelled to tackle extra threat below 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 corporations corresponding to Brickworks and Bluescope Metal got here as main renewables traders stated they received’t make investments the tens of billions of {dollars} required to fulfill Victoria’s proposed 95 per cent renewables goal for 2035 if they’re deprived in any method towards the brand new state participant.

Non-public traders might face being squeezed out of recent funding in vitality below 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 unfavorable” for main suppliers AGL Vitality and Origin Vitality.

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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 lovely 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 shouldn’t be precisely hovering. Vestas closed three turbine manufacturing factories in 2021.

That inexperienced funding droop may very well 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 want a /sarc tag?

Holdouts like Australia and California would possibly stumble alongside for some time, burning down their youngsters’s future in a futile try to understand their unimaginable inexperienced vitality dream. However ultimately they, like everybody else, will succumb. Governments can solely defy the legal guidelines of economics for thus lengthy, earlier than the gravity of monetary misery brings their inexperienced fantasies crashing again right down to Earth.

I anticipate to see loads of deserted wind farms and photo voltaic farms within the subsequent decade. Please submit any hyperlinks to photographs you’ve got personally taken in feedback, together with an outline of the placement within the photograph. Please make it clear if you’re completely happy for me to make use of the photographs. I’d like to make use of such photographs, with acknowledgement, in future WUWT articles concerning the demise of the renewable business.

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