Minister Issues Order to Agency to Fund More Suburb-Wide Electrification Projects

The latest direction will be an expansion of an existing project that electrified multiple homes by replacing gas.
Minister Issues Order to Agency to Fund More Suburb-Wide Electrification Projects
A general view of the battery storage system during the opening of the Hazelwood Battery Energy Storage System (BESS) in Morwell, Victoria of Australia on June 14, 2023. AAP Image/Diego Fedele
Monica O’Shea
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Climate Change Minister Chris Bowen has issued a ministerial direction to the Australian Renewable Energy Agency (ARENA) to fund an expansion of solar electrification of homes.

The direction calls for more “community electrification demonstration projects” modelled on the “Electrify 2515” project.

Electrify 2515, based in multiple suburbs in Wollongong, NSW, dolled out taxpayer funded subsidies for 500 homes to switch out gas for electric appliances.

The Albanese Labor government had provided $5.4 million of taxpayer dollars towards Electrify 2515 in Wollongong. In addition, the government has allocated $144 million in the past six years on 49 projects to electrification and “energy smart improvements.”

The government confirmed ARENA plans to replicate the Electrify 2515 pilot in the Australian Capital Territory, Western Australia, Queensland, Victoria and Tasmania.

The move follows a deal with crossbenchers David Pocock, Jacqui Lambie, Lidia Thorpe, and David Van in return for passing the Future Made in Australia laws.

The Future Made in Australia agenda, modelled on Biden’s Inflation Reduction Act, provides $22.7 billion (US$14.2 billion) worth of grants and tax breaks over the next decade to fund clean energy industries.

In relation to the latest announcement, the government explained this was the first time Bowen had used statutory ministerial referral powers to ask ARENA’s board to consider backing specific projects.

“It is important that suburb-wide or community electrification demonstration projects are trialled in every state and territory in Australia to feed vital information and data back to ARENA, energy and electricity network companies, and governments about how best to roll out household electrification around the country.”

The government explained specific decisions would be made independently of the minister.

Transition to Cut Costs: Bowen

Minister Bowen said communities would see the “benefits of the clean energy” transition.

“ARENA pilot projects supporting home electrification will help create valuable insights into how households can transition to renewables and smart energy systems to cut energy costs and reduce emissions,” he said.

Independent Senator David Pocock said he was proud to negotiate government support and work with Electrify Canberra to secure this deal. Electrify Canberra is aiming to transition homes in the ACT to all-electric homes.

“Electrifying an entire suburb as a way of speeding up electrification for every household to save $$$$ was a commitment I gave to our community,” Pocock said on X. 

Drop Labor’s ‘Renewables Only’ Approach: Opposition

However, the Coalition has urged the Labor Party to ditch its “renewables only” approach to energy transition.
“We have to be very straight with the Australian people about the problems we face. They’re challenging conversations to have, but we are going to become a poorer and weaker nation unless we drop Labor’s renewables-only approach,” said Shadow Energy Minister Ted O'Brien on Jan 24.

O'Brien believes Australia needs to unlock more gas and nuclear energy without closing coal power stations too early.

“If you think of the key things we need to do to fix the mess we’re in, and we’ve already talked about some of them, right, you need to make sure that you don’t close the coal prematurely. Bring in more gas. You need to bring in nuclear energy.

“Can we do all of these things and still remain committed to net zero electricity grid by 2050? We can. And we know we can, because other countries are doing it and getting their their products to market cheaper.”

The Liberal Party MP reiterated the Coalition’s opposition to several Labor pledges including remodeling the energy grid so that it is 82 percent powered by renewables, offering incentives to reach 89 percent new car EV sales by 2030, and for the country to reach its 43 percent emissions reduction target by 2030.

Monica O’Shea
Monica O’Shea
Author
Monica O’Shea is a reporter based in Australia. She previously worked as a reporter for Motley Fool Australia, Daily Mail Australia, and Fairfax Regional Media.