Australian Renewable Energy Agency (General Funding Strategy) Determination 2021

Administered by Department of Climate Change, Energy, the Environment and Water

Legislation au F2021L01191 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

Issued by authority of the Minister for Energy and Emissions Reduction

Australian Renewable Energy Agency Act 2011

Australian Renewable Energy Agency (General Funding Strategy) Determination 2021

Section 19 of the Australian Renewable Energy Agency Act 2011 (the Act) provides that the Board of the Australian Renewable Energy Agency (ARENA) must, for each financial year, develop a General Funding Strategy (GFS) to govern the provision of financial assistance by ARENA under the Act. A GFS must relate to the financial year for which the strategy is developed and the next two financial years, and must state ARENA’s principal objectives and priorities for the provision of financial assistance during this time period. Each GFS must be developed during the financial year previous to that in which it commences.

Section 20 provides that, as soon as practicable after developing a GFS for a financial year, the Board must present a copy to the Minister for approval. Following this, the GFS becomes a non-disallowable legislative instrument made on the date of Ministerial approval.

The Australian Renewable Energy Agency (General Funding Strategy) Determination 2021 (the Determination) enacts ARENA’s GFS for the 2021/22 – 2023/24 financial years as a legislative instrument, as per the above.

The GFS for the 2021/22 – 2023/24 financial years has been updated from the 2019/20 – 2021/22 financial years to reflect current Government priorities. ARENA’s main objectives to improve the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia remain a primary focus of the GFS. However, the GFS investment priorities have also been updated to acknowledge ARENA’s functions have been expanded through the Australian Renewable Energy Agency (Implementing the Technology Investment Roadmap) Regulations 2021 (the Regulations) to enable ARENA to provide financial assistance in relation to priority low emissions technologies, with a focus on the five priority low emissions technologies and the corresponding stretch goals identified in the Government’s first Low Emissions Technology Statement (LETS)[1]. The Regulations also prescribe a function of providing financial assistance in relation to five targeted programs announced in the 2020-21 Budget.

Under subsection 20(2) of the Act this instrument is not subject to disallowance. This reflects both the independence of ARENA in developing the GFS and the similarities of the GFS to government directions to statutory bodies which are also not subject to disallowance. As the provision of assistance by ARENA must be in accordance with the GFS under s 10 of the Act, disallowance of some or all of the strategy could impede the ability for ARENA to independently perform its statutory functions.

Details of the Determination are outlined in Attachment A.

There are no statutory pre-conditions that need to be satisfied before the power to make the Determination may be exercised.


ATTACHMENT A

Details of the Australian Renewable Energy Agency (General Funding Strategy) Determination 2020

Section 1 – Name of Determination

Section 1 provides that the title of the Determination is the Australian Renewable Energy Agency (General Funding Strategy) Determination 2021.

Section 2 – Commencement

Section 2 provides that the Determination commences from the time it was made by the Minister. This follows the requirements of sub-section 21(1) of the Act.

Section 3 – Authority

Section 3 provides that the Determination is made under the Australian Renewable Energy Agency Act 2011.

Section 4 – Definitions

Section 4 provides that the term “Act” in the instrument refers to the Australian Renewable Energy Agency Act 2011.

Section 5 – Repeals

Section 5 provides that the Determination, on the day that it comes into force, repeals the previous GFS (the Australian Renewable Energy Agency (General Funding Strategy) Determination 2019). The power to do this derives from sub-section 33(3) of the Acts Interpretation Act 1901[2] read in conjunction with sub-section 21(2) of the Act.

Section 6 – Approval of General Funding Strategy

Section 6 provides that, by signing the Determination, the Minister thereby approves and makes the GFS for the 2021/22 – 2023/24 financial years (at Schedule 1 of the Determination) as a non-disallowable legislative instrument as at the date of signature. The power to do this derives from sub-section 20(2) of the Act.

It should be noted that sub-section 19(2) of the Act requires a GFS to be developed during the financial year previous to that in which it commences. The GFS for the 2021/22 – 2023/24 financial years was developed by the Board in the 2020/21 financial year, as required by sub-section 19(2).

The GFS for the 2021/22 – 2023/24 financial years should be read in conjunction with the latest ARENA Investment Plan[3]. While the Investment Plan does not form part of the Determination (and is therefore not formally part of the 2021/22 – 2023/24 GFS), it does outline non-binding principles the Board will consider when assessing funding applications.

Schedule 1—General Funding Strategy 2021/22 – 2023/24

Schedule 1 provides the detail of the general funding strategy developed by ARENA. It includes the context of the strategy in clause 1, ARENA’s objectives in clause 2 (drawing on the object of the Act and purpose of the new functions) and summary of overall strategy in clause 3.  Clause 4 outlines the investment priorities, namely to:

  • optimise the transition to renewable electricity,
  • commercialise clean hydrogen,
  • support the transition to low emissions metals,
  • scale up CCS and reduce the cost of soil carbon measurement, and
  • deliver targeted programs from the 2020-21 Federal Budget.

Clause 5 clarifies the relationship with the corporate plan[4] and clause 6 concerns performance reporting.

 

[1] The LETS refers to the Government policy of the same name, under the Technology Investment Roadmap, which identified five priority low emissions technologies the first annual release, with further new and emerging technologies to be identified for future investment. See further https://www.industry.gov.au/data-and-publications/technology-investment-roadmap-first-low-emissions-technology-statement-2020.

[2] Under sub-section 33(3) of the Acts Interpretation Act 1901, where an Act confers a power to make, grant or issue any instrument of a legislative or administrative character (including rules, regulations or by-laws), the power shall be construed as including a power exercisable in the like manner and subject to the like conditions (if any) to repeal, rescind, revoke, amend, or vary any such instrument.

[3] ARENA’s Investment Plan is a document available on ARENA’s website that identifies ARENA’s investment priorities: https://arena.gov.au/about/publications/funding-investment-plan/

[4] For context, ARENA’s corporate plan is available at: https://arena.gov.au/about/publications/corporate-plan/

Overview

The Australian Renewable Energy Agency (General Funding Strategy) Determination 2021, issued under the authority of the Minister for Energy and Emissions Reduction, enacts the General Funding Strategy (GFS) for the Australian Renewable Energy Agency (ARENA) for the 2021/22 to 2023/24 financial years as a legislative instrument. This determination is made pursuant to Section 19 of the Australian Renewable Energy Agency Act 2011, which mandates that the ARENA Board must develop a GFS each financial year to guide the provision of financial assistance. The policy objective of the Act is to enhance the competitiveness of renewable energy technologies and increase the supply of renewable energy in Australia, while the recent amendments reflect the expanded functions of ARENA to include support for priority low emissions technologies as outlined in the Government's first Low Emissions Technology Statement. The Determination is not subject to disallowance, reflecting ARENA's independent role in developing the GFS and aligning with the government’s directions to statutory bodies that are also non-disallowable. This legislative instrument ensures that ARENA can independently perform its statutory functions in accordance with the approved GFS.

Scope and Application

The Australian Renewable Energy Agency Act 2011 governs the operations of the Australian Renewable Energy Agency (ARENA) and mandates the development of a General Funding Strategy (GFS) each financial year, detailing the principal objectives and priorities for financial assistance. This strategy is required to be presented to the Minister for approval and, once approved, becomes a non-disallowable legislative instrument. The Australian Renewable Energy Agency (General Funding Strategy) Determination 2021 enacts the GFS for the 2021/22 to 2023/24 financial years. The Determination applies to ARENA and the Minister for Energy and Emissions Reduction, and its geographic reach is national as it pertains to the functions of a Commonwealth agency. The Determination does not explicitly state exclusions, exemptions, or thresholds but updates the investment priorities to reflect the expanded functions of ARENA, including support for priority low emissions technologies and targeted programs from the 2020-21 Federal Budget. The Determination repeals the previous GFS and is not subject to disallowance, reflecting ARENA's independence in its operations and the nature of government directions to statutory bodies.

Key Provisions

The Australian Renewable Energy Agency (General Funding Strategy) Determination 2021 (the Determination) provides the General Funding Strategy (GFS) for the Australian Renewable Energy Agency (ARENA) for the financial years 2021/22 to 2023/24, as required under section 19 of the Australian Renewable Energy Agency Act 2011 (the Act). Section 20 of the Act requires the Board of ARENA to present a copy of the GFS to the Minister for approval. Once approved, the GFS becomes a non-disallowable legislative instrument (Section 6). The Determination thus enacts ARENA’s GFS for the specified financial years. This GFS has been updated to reflect current government priorities, while continuing to focus on improving the competitiveness of renewable energy technologies and increasing the supply of renewable energy in Australia. The updated GFS also acknowledges the expanded functions of ARENA, including support for priority low emissions technologies as identified in the Government’s first Low Emissions Technology Statement. The Determination imposes several obligations and requirements on ARENA. Firstly, ARENA must develop a GFS for each financial year, outlining its principal objectives and priorities for the provision of financial assistance (Section 19). This GFS must cover the financial year for which it is developed and the next two financial years. It must be developed during the financial year prior to its commencement. Secondly, ARENA must present a copy of the GFS to the Minister for approval as soon as practicable after its development (Section 20). The Minister must then approve the GFS, making it a non-disallowable legislative instrument (Section 6). This process ensures that ARENA's activities are aligned with government priorities and objectives. Under the Act, there are no specific offences outlined in the Determination itself, but the Determination is integral to the operation of ARENA and its compliance with statutory requirements. Failure to develop a GFS as required by section 19 or to present it to the Minister for approval as required by section 20 could potentially impede ARENA's ability to independently perform its statutory functions. Furthermore, the Determination's role in establishing the GFS means that any breach in the process of developing, presenting, or approving the GFS could have significant implications for ARENA's operations and its ability to provide financial assistance in line with the approved strategy. While the Determination itself does not specify penalties, breaches of the Act or related regulations could result in civil or criminal consequences, including fines and other penalties as prescribed by relevant legislation.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.