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$2.47bn: lower energy prices, reduced emissions and economy boost

The 2020-21 Budget is allocating almost $2.5 billion to the energy industry.

The Hon Angus Taylor MP, Minister for Energy and Emissions Reduction, said, ‘Our 2020-21 Budget initiatives will help to lock in lower energy prices while simultaneously developing the backbone of a reliable, lower emissions National Electricity Market (NEM) for the next decade and beyond.’

‘As we rebuild from the COVID-19 pandemic, the government will also accelerate the development of low emission technologies to help reduce emissions, strengthen energy security and support jobs.’

Energy

Measures include:

  • up to $250 million to accelerate major transmission projects such as Marinus Link, Project EnergyConnect and VNI West to the next stage
  • a $53.6 million microgrid program to support the development of projects in regional Australia
  • $52.2 million to improve energy efficiency, lower bills and deliver abatement, including $24 million to fund building upgrades and reduce energy costs for community groups and for small and medium hotels.

Fuel security

Australia’s long-term fuel security is being strengthened through a $250.7 million investment in diesel fuel storage facilities. Reforms will boost the resilience of fuel supply and support local refineries.

This will create up to 1000 new jobs and protect motorists from higher fuel prices.

Gas

The government is investing $42 million to unlock gas supply. A further $10.9 million will be invested in gas infrastructure planning and market reform to lower the price of gas for households and manufacturers.

Emissions reduction

The Budget sets out measures for reducing emissions through technology, including:

  • $1.4 billion over 10 years for the Australian Renewable Energy Agency (ARENA) by accelerating the development of new and emerging technologies to reduce emissions
  • $70.2 million over 5 years to activate Australia’s hydrogen export hub, research collaborations and international supply chains.

More information

Minister’s media release

Announcing Budget 2020-21 Australian Government

Budget statements Department of Industry, Science, Energy and Resources (DISER) portfolio