The Commonwealth Government is to keep both of the renewable energy agencies that the former Abbott government attempted to dismantle.

The Abbott Government’s efforts to abolish the Australian Renewable Energy Agency and the Clean Energy Finance Corporation which were blocked by the Senate.

Prime Minister, Malcolm Turnbull, has now announced that both agencies will be retained and a new $1 billion Clean Energy Innovation Fund will be established to lend to, or take an equity stake, in emerging technologies.

The new Clean Energy Innovation Fund will receive its billion dollars over 10 years from the $10 billion in borrowings already allocated to the Clean Energy Finance Corporation.

The Australian Renewable Energy Agency will continue to manage its existing portfolio of grants and deliver an announced $100 million in large-scale solar projects but, once that $100 million large-scale solar round is complete, it will cease giving grants and provide loan or equity finance under the new Clean Energy Innovation Fund.

ARENA will have an expanded focus beyond renewable energy to enable energy efficiency and low emissions technology options.