The strategy, delivered via the Australian Centre for Renewable Energy (ACRE) is intended to stimulate the growth of the renewable energy industry in Australia, as well as to assist Australian high-potential renewable energy start-up companies by making critical early-stage equity investments.

As part of the Federal Government’s $5 billion Clean Energy Initiative, ACRE, the primary delivery mechanism for Federal funding in renewables, will promote the development, commercialisation and deployment of the Australian renewable energy industry, and take responsibility for approving eligible companies for the funds.

The Renewable Energy Venture Capital Fund (REVCF) entails the appointment by ACRE of up to two venture capital fund managers to make early-stage equity investments that leverage additional funds to help commercialise renewable technologies, thereby addressing a major challenge facing renewable energy companies: access to capital.

Applications for the $100 million Emerging Renewables program are anticipated to open in the coming months and will be assessed by the ACRE Board.

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It is expected that the venture capital fund manager(s) will be up and running by early 2012, at which point they will be ready to assist renewable energy companies with the greatest chance of commercial success.

According to the Federal Government, the primary objective of the program is to provide venture capital and active investment management to encourage the development of Australian companies that are commercialising renewable energy technologies.

Under the program guidelines, the eligible investee company must be commercialising renewable energy technologies or will, under the investment arrangement with the licensed fund, be required to commercialise renewable energy technologies.

According to the Minister for Resources, Energy and Tourism, Martin Ferguson, the renewable energy sector will receive support from two measures in the 2011–12 Budget: funding from the Emerging Renewables program – which will be increased from $40 million to $100 million, and funding from the $100 million REVF out to 2023–24 to assist early-stage renewable energy companies.

Capital, interest and profit returns from the funds will be returned to ACRE to support future investments in renewable energy technology development.

Along with a carbon pricing mechanism, the REVCF is expected to help Australia meet the bipartisan Renewable Energy Target and emissions reduction target of 20 per cent by 2020.

The Renewable Energy Venture Capital Fund (REVCF) entails the appointment by the Australian Centre for Renewable Energy of up to two venture capital fund managers to make early-stage equity investments that leverage additional funds to help commercialise renewable technologies, thereby addressing a major challenge facing renewable energy companies: access to capital.