The goalposts seem to change regularly when it comes to predicting where future growth in Australia will come from. With an altering climate high on the list of priorities in terms of effects on the market in the long term, there has been much discussion over which solutions pose the best advantages.
It is clear that all the major challenges that Australia is likely to face over the next decade stand a better chance of resolution if there is adequate cooperation between the private and public sectors.
The growing renewable energy sector, where the combination of private initiatives and technology and public mass market ability and need has led to energy optimization techniques not previously thought of, demonstrates this concept.
With Australia’s large potential to become one of the world leaders in renewables due to the land and climate that it has at its disposal, bringing smart technology to a sector abundant with promise has promoted the idea of further development.
Part of the funding for private startups to become big players in the sector comes from the Clean Energy Finance Corporation (CEFC), which has been applying federal funding to the most vital areas that can enable serious growth.
One company that became a recent beneficiary of the CEFC is Redbank Technologies. It grew from a small startup in Brisbane to a company that received $6m in funding to help generate better returns and reduce the risks of financial investment in a burgeoning sector.
With many constraints involved in Australia trying to push renewables while also juggling various fossil fuel commitments, investors are wary of putting all their eggs in one basket. By directing funds at the inception stage to companies that can make a big difference with a relatively small amount of funding, the nation can create a solid foundation for renewables much more quickly.
When private investors begin to receive federal backing, it kicks off the process that sees companies such as Redbank Technologies benefit even further. This allows companies to reach out to the private sector to get help with research and development initiatives while also showing off their current smart tech capacity and using additional funding to grow it.
Since it was set up in 2012, the CEFC has already managed to direct $6.6bn in funding to help push renewable and clean energies along as fast as possible and ensure that they can grow sustainably. This means that these energies can add more to the Australian economy in the long run, and with so much present uncertainty in many worldwide markets, the CEFC offering some stable investment could be exactly what the renewable energy sector needs.
Analysts are holding up the CEFC model as proof that private and public sectors working together is key to Australia taking the next steps in its development of cleaner fuels and energy sources. Given its return of investment rate of 4.4%, this is a healthy risk-to-reward offer that may well pull in the private capital needed to exponentially benefit the industry.