CWE Welcomes Australian Carbon Pricing Mechanism

Wave energy developer Carnegie Wave  Energy Limited (CWE) welcomes the commencement of the Australian Carbon Pricing Mechanism which forms part of the Australian Government’s Clean Energy Future package. 

The Australian Carbon Pricing mechanism has introduced a price on carbon for the largest carbon emitters in Australia. As of July 1st, these entities are required to pay a fixed price of $23 per tonne of carbon equivalent emitted. This fixed carbon price will increase in line with inflation each year from 2012 to 2015. After 2015, the carbon price will become subject to a flexible market pricing mechanism.

ARENA, which also began operations on July 1st as part of the Clean Energy Future package, is an independent agency created to promote the development, commercialisation and deployment of renewable energy. ARENA manages around $3.2 billion in existing renewable energy measures that were previously incorporated into the Australian Centre for Renewable Energy (ACRE), the Australian Solar Institute (ASI) and the Department of Resources, Energy and Tourism (DRET).

In addition to carbon pricing and ARENA, the Clean Energy Future package also includes a variety of other programs which are beneficial to the emerging clean energy industry, such as the 20% by 2020 renewable energy target (RET) and the introduction of the Clean Energy Finance Corporation (CEFC).

The Government is investing $10 billion in the Clean Energy Finance Corporation, a green investment bank, to support the development of renewable energy and clean technology projects. CEFC will invest $2 billion a year for 5 years starting from 2013 – 2014. These investments will take the form of loans, guarantees and equity investments and will leverage additional private sector investment.

Carnegie enthusiastically supports the Australian government’s actions towards securing a clean energy future and additional opportunities to access funding from CEFC and ARENA to develop future CETO wave power projects. This government support further to the grants already awarded to Carnegie, will ensure that the benefits of developing renewable energy, such as wave energy, can be fully realised; creating clean zero emissions energy, creating jobs and providing economic benefits for the country.

The Perth Wave Energy Project (PWEP), Carnegie’s innovative wave energy demonstration project, recently received grant support from the Australian Government through the Emerging Renewables Program which complements funding from the State Government of Western Australia through the Low Emissions Energy Development (LEED) Program. This funding has been critical in allowing the demonstration project to proceed in Australia.

Carnegie’s Managing Director and Chief Executive Officer, Dr Michael Ottaviano said: “The introduction of programs such as the Carbon Pricing Mechanism, the Renewable Energy Target, the Clean Energy Finance Corporation and the Australian Renewable Energy Agency signal that Australia and the region are committed to developing a strong clean energy future. For Carnegie, these programs will provide crucial support in the deployment of wave energy projects beyond the Perth Wave Energy Project.” 

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Offshore WIND staff, July 2, 2012; Image: CWE