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EMERGING RENEWABLES PROGRAM
Information Guide
Version 1.0 12 July 2012
Applicants should check that this is the current version of the Information Guide
CONTENTS
EMERGING RENEWABLES PROGRAM SUMMARY ..................................................................... 5
Eligibility Criteria .................................................................................................................... 5
Merit Criteria.......................................................................................................................... 6
1. INTRODUCTION .................................................................................................................. 7
1.1 Purpose ...................................................................................................................... 7
1.2 Background ................................................................................................................ 7
1.3 Program overview ...................................................................................................... 7
1.4 Program objectives .................................................................................................... 8
1.5 Program Outcomes .................................................................................................... 8
1.6 Applicant workshops.................................................................................................. 9
1.7 Address for submission of proposals ......................................................................... 9
1.8 Contact ....................................................................................................................... 9
2. ABOUT THE EMERGING RENEWABLES PROGRAM .......................................................... 10
2.1. Overview .................................................................................................................. 10
2.2. What is a Project? .................................................................................................... 10
2.3. What is a Measure? ................................................................................................. 13
2.4 Features of the Program .......................................................................................... 13
2.5. How much funding can I apply for? ......................................................................... 14
2.6. Other considerations ............................................................................................... 15
3. PROJECTS ......................................................................................................................... 16
3.1. Overview of the application process ....................................................................... 16
3.2. Project Eligibility Criteria.......................................................................................... 17
3.3. Project Merit Criteria ............................................................................................... 20
3.4. Phase 1 – Preparation and lodgement of EOIs ........................................................ 27
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3.5. Consideration of EOIs............................................................................................... 28
3.6. Consultation with ARENA staff to further develop EOIs ......................................... 29
3.7. Collaboration............................................................................................................ 30
3.8. Phase 2 –Preparation and lodgement of Project funding applications ................... 30
3.9. Consideration of Project funding applications ........................................................ 32
4. MEASURES ....................................................................................................................... 34
4.1. Overview of the application process ....................................................................... 34
4.2. Measure Eligibility Criteria ....................................................................................... 34
4.3. Measure Merit Criteria ............................................................................................ 37
4.4. Preparation and lodgement of Measure applications ............................................. 40
4.5. Consideration of Measure applications ................................................................... 42
5. FUNDING AGREEMENTS .................................................................................................. 43
5.1. Overview .................................................................................................................. 43
5.2. Preconditions for receiving a grant.......................................................................... 43
5.3. Terms of the Funding Agreement ............................................................................ 44
5.4. Variations to Funding Agreements .......................................................................... 46
5.5. Taxation implications ............................................................................................... 47
5.6. Knowledge sharing and publication of Project information .................................... 47
5.7. Monitoring and evaluation ...................................................................................... 48
6. FURTHER PROGRAM INFORMATION ............................................................................... 50
6.1. Confidentiality and disclosure of information ......................................................... 50
6.2. Exceptions to confidentiality ................................................................................... 50
6.3. Use of applicants’ information ................................................................................ 50
6.4. Privacy ...................................................................................................................... 51
6.5. Feedback and complaints handling ......................................................................... 51
6.6. Disclosure of proceedings ........................................................................................ 51
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6.7. Changes to proposals ............................................................................................... 52
6.8. Applicant’s responsibilities ...................................................................................... 52
6.9. No contract or liability ............................................................................................. 53
6.10. ARENA’s rights...................................................................................................... 53
6.11. Conflicts of interest .............................................................................................. 54
APPENDIX A EMERGING RENEWABLES PROGRAM ELIGIBLE EXPENDITURE GUIDELINES ...... 55
General Principles ................................................................................................................ 56
Specific Eligibility Provisions ................................................................................................ 56
Labour .................................................................................................................................. 57
Contract Expenditure ........................................................................................................... 58
Expenditure prior to execution of the Funding Agreement ................................................ 58
Overseas Expenditure .......................................................................................................... 58
Accounting Systems ............................................................................................................. 58
APPENDIX B PROGRAM TECHNOLOGY PRIORITIES AND STRATEGIC OBJECTIVES .................. 60
Solar ..................................................................................................................................... 60
Geothermal .......................................................................................................................... 60
Wind ..................................................................................................................................... 60
Hydro.................................................................................................................................... 60
Wave, Ocean and Tidal energy ............................................................................................ 60
Bioenergy ............................................................................................................................. 61
Hybrid systems ..................................................................................................................... 61
Enabling technologies and systems ..................................................................................... 61
Other technology considerations ........................................................................................ 61
Strategic objectives for the Program ................................................................................... 61
APPENDIX C: APPLICABLE REQUIREMENTS............................................................................. 62
Australian National Audit Office .......................................................................................... 62
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Anti-terrorism ...................................................................................................................... 62
Anti-money laundering ........................................................................................................ 62
Equal opportunity ................................................................................................................ 62
Archiving .............................................................................................................................. 63
Environmental regulation .................................................................................................... 63
National Code of Practice for the Construction Industry .................................................... 63
Occupational health and safety ........................................................................................... 65
OHS Accreditation Scheme .................................................................................................. 65
APPENDIX D: GLOSSARY OF KEY TERMS AND PHRASES ......................................................... 67
Interpretations ..................................................................................................................... 67
Terms and phrases ............................................................................................................... 67
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EMERGING RENEWABLES PROGRAM SUMMARY
The Emerging Renewables Program provides support under two funding categories:
Projects - grants for the development of renewable energy technologies along the
technology innovation chain.
Measures - grants for:
o renewable energy industry capacity building activities; or
o renewable energy industry development activities; or
o preparatory activities for a Project.
Eligibility Criteria
Applicants for Projects must satisfy the following seven criteria:
At the time of entering into a Funding Agreement, be an Australian entity
incorporated under the Corporations Act 2001.
Be able to demonstrate to the satisfaction of the Australian Renewable Energy
Agency (ARENA) that the project described in the proposal meets the definition of a
Project.
Be able to demonstrate to the satisfaction of the ARENA that the Project will take
place primarily in Australia.
Be able to demonstrate to the satisfaction of ARENA ownership of, access to, or the
beneficial use of, any intellectual property necessary to carry out the Project.
Not be named as an organisation that has not complied with the Equal Opportunity
for Women in the Workplace Act 1999 (Cth).
Be able to demonstrate to the satisfaction of the ARENA, the applicant’s need for
funding for the Project, taking into account the extent of funding for the Project from
other sources.
Comply with the requirements in section 3.4 of this Information Guide.
Applicants for Measures must satisfy the following six criteria:
At the time of entering into a Funding Agreement, hold an Australian Business
Number (ABN).
Be able to demonstrate to the satisfaction of the ARENA that the activity described
in the proposal meets the definition of a Measure.
Be able to demonstrate to the satisfaction of ARENA ownership of, access to or the
beneficial use of, any intellectual property necessary to carry out the Measure.
Not be named as an organisation that has not complied with the Equal Opportunity
for Women in the Workplace Act 1999 (Cth).
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Be able to demonstrate to the satisfaction of ARENA, the applicant’s need for
funding for the Measure taking into account the extent of funding for the Measure
from other sources.
Comply with the requirements in section 4.4 of this Information Guide.
Merit Criteria
The Emerging Renewables Program is a merit-based program. Only a limited number of
applications that satisfy the merit criteria to a high standard will be considered for funding.
Applicants for Projects will be assessed for merit against the following six criteria:
Potential of the renewable energy technology encompassed in the Project to deliver
economic benefits from lowering the cost and increasing the supply of the
renewable energy in Australia over the long term.
Technical strength of the Project to deliver clearly defined technical outcomes to
progress the renewable energy technology along the technology innovation chain
and the national and international significance of the technical innovation involved.
Contribution of the Project to the renewable energy technology priorities, as set out
in Appendix B to this Information Guide.
Capability of the applicant and any proposed supporting consortium to implement
the Project set out in the proposal.
Funding sought from the Program for the Project compared with the total cost of the
Project.
Overall risk associated with the Project as set out in the proposal, including without
limitation: compliance, technical and financial risks.
Applicants for Measures will be assessed for merit against the following four criteria:
Contribution of the Measure to the development of the renewable energy industry
in Australia.
Capability the applicant and any proposed supporting consortium to implement the
Measure as set out in the proposal.
Funding sought from the Program for the Measure compared with the total cost of
the Measure.
Overall risk associated with the Measure as set out in the proposal, including,
without limitation: compliance, technical and financial risks.
More information on all Merit Criteria is contained in sections 3.3 (for Projects) and
4.3 (for Measures) of this Information Guide.
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1. INTRODUCTION
1.1 Purpose
The purpose of this Information Guide is to explain, clarify and in some cases expand upon,
the requirements for the Emerging Renewables Program (the Program) set out in the
Emerging Renewables Program Administrative Guidelines (the Guidelines). This document
provides guidance to potential applicants wishing to apply for funding from the Program
and establishes, at a general level, the policies and practices to be adopted by ARENA in the
administration of the Program. This document should be read in conjunction with the
Guidelines.
This Information Guide may be revised and reissued at ARENA’s discretion, in which case a
revised version will be placed on the ARENA website at www.arena.gov.au. For any material
changes, an email notification will be sent to potential applicants who are registered to
receive ARENA or Program updates.
The Guidelines set out the Program’s governance and administrative arrangements on
which this Information Guide is based. In the event of a perceived or real inconsistency
between this Information Guide and the Guidelines, the Guidelines will prevail over this
document.
Potential applicants should be aware that it is their responsibility to inform themselves of
the requirements and criteria for funding from the Program, including the requirements and
guidance contained in this Information Guide.
1.2 Background
The Program is operated by ARENA, an independent Commonwealth authority that
supports innovation in renewable energy in Australia. The objectives of ARENA are:
to improve the competitiveness of renewable energy technologies; and
to increase the supply of renewable energy in Australia.
1.3 Program overview
The Program is a merit-based program that offers funding to selected, eligible applicants
that lodge proposals. All funding under the Program is in the form of grants.
[Guidelines clause 1.4]
The Program is a continuation of the program of the same name formerly operated by the
Australian Centre for Renewable Energy (ACRE).
[Guidelines clause 1.2]
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The Program provides grants to support innovation in renewable energy technologies in two
funding categories:
1. Projects; and
2. Measures.
1.4 Program objectives
The objective of the Program is to provide funding to support:
Projects for the development of renewable energy technologies as they move from early
stage research and development along the technology innovation chain to
commercial competitiveness, and thereby contribute to increasing the
proportion of competitively-priced renewable energy in Australia’s total energy
mix; and
Measures for capacity building and skills development in the renewable energy industry,
preparatory activities for Projects or any other industry activities to assist the
development and deployment of renewable energy technologies.
[Guidelines clause 2.1]
The particular focus of the Program may change over time. The current renewable energy
technology priorities for the Program are set out in Appendix B of this Information Guide.
Proposals will be assessed for merit against these technology priorities and strategic
objectives. Potential applicants should refer to section 3.3 of this Information Guide for
details on the Merit Criteria for Projects and section 4.3 for details on the Merit Criteria for
Measures.
1.5 Program Outcomes
The intended outcome of the Program is for a range of renewable energy technologies to
provide competitively-priced energy for Australia over the long term. Additional outcomes
are expected to be:
increased capacity and skills in Australia’s renewable energy industry;
increased investment in the renewable energy sector, including investment from the
private sector and governments; and
improved coordination and collaboration between governments, industry, the finance
sector and the research community, both nationally and internationally.
[Guidelines clause 3.1]
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1.6 Applicant workshops
ARENA may arrange workshops for potential applicants to provide information on the
Program, including the application process and an overview of the Funding Agreement. The
times and places of any such workshops will be advised on the ARENA website at
www.arena.gov.au and an email notification will be sent to prospective applicants
registered to receive Program updates.
1.7 Address for submission of proposals
All proposals for Projects and Measures should be submitted in accordance with the
requirements of section 3.4 (for EOIs), section 3.8 (for Project funding applications) or
section 4.4 (for Measure applications) to the mailing address or delivery address below.
Mailing address:
Emerging Renewables Program
Australian Renewable Energy Agency
GPO Box 643
CANBERRA ACT 2601
Attention: Emerging Renewables Program Manager
Delivery address:
Emerging Renewables Program
Australian Renewable Energy Agency
51 Allara Street
CANBERRA
Attention: Emerging Renewables Program Manager
1.8 Contact
Applicants should clarify any questions they may have about the Program or the application
process with ARENA as they prepare their proposals. The Emerging Renewables Program
Team can be contacted at the mailing address in section 1.7 above or by:
Telephone: (02) 6243 7054
Email: emerging.renewables@arena.gov.au
Only responses from the Program email address emerging.renewables@arena.gov.au or
published on the ARENA website at www.arena.gov.au will be regarded as definitive for the
purposes of communication with applicants.
ARENA will endeavour to respond promptly to applicants’ queries and may choose to
provide the questions and answers to all people and organisations registered for ARENA or
Program updates, without disclosing the source of any questions, or revealing confidential
information.
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2. ABOUT THE EMERGING RENEWABLES PROGRAM
2.1. Overview
The Emerging Renewables Program (the Program) provides funding for the development of
priority renewable energy technologies with the potential to lower the cost of renewable
energy in Australia and thereby increase the amount of energy provided by renewable
sources. The Program aims to encourage private and public sector investment and
collaboration in renewable energy technology development. The technology priorities for
the Program are detailed in Appendix B to this Information Guide.
ARENA is seeking to maximise public value for money and the expected economic benefits
from the funding allocated to the Program, recognising that different renewable energy
technologies at different stages of the technology innovation chain warrant different levels
of support. ARENA also aims, though the Program, to support a diverse portfolio of Projects
and Measures from a range of renewable energy technologies and to increase the level of
collaboration and investment by the private sector and other government agencies in the
development of renewable energy technologies.
The Program has two funding categories:
1 Projects; and
2 Measures.
2.2. What is a Project?
Projects are intended to progress the development of a renewable energy technology along
the technology innovation chain.
[Guidelines clause 32.1]
Projects typically involve electricity generation plant, fuel production facilities, equipment,
systems, components or software using renewable energy technologies. Examples of
Projects include:
construction of renewable energy technology plant or systems; and
development of components or software for use with renewable energy
technologies in Australia, either as a standalone development or as part of a larger
project.
Projects will either progress development of new Australian renewable energy technologies
along the technology innovation chain or adapt overseas renewable energy technologies for
Australian renewable energy sources or conditions, where these sources or conditions differ
significantly from those overseas. The renewable energy technologies developed under the
Program will need to meet the renewable energy technology priorities detailed in
Appendix B of this Information Guide.
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Renewable energy technologies are technologies that use or enable the use of one or more
renewable energy sources. This may include technologies that:
i generate or supply energy, including hybrid systems;
ii provide a direct energy input for other uses, such as transport, heating, cooling,
cogeneration and trigeneration; or
iii are otherwise associated with, or used in conjunction with, renewable energy
technologies;
where:
a. renewable energy sources are those that are generated from natural resources that
can be constantly replenished;
b. hybrid systems integrate renewable energy technologies with other energy
production systems;
c. enabling technologies and systems are those that enable renewable energy
technologies to function more effectively and may include resource assessments,
new materials, nanotechnology, integration systems, information and
communication technologies, forecasting systems, control systems, fuel supply
logistics, energy storage or smart grids;
d. cogeneration technologies involve the combined production of electricity and useful
heat from the same process (also known as combined heat and power); and
e. trigeneration technologies involve the simultaneous production of three forms of
energy (electricity, useful heat and cooling) from the same process (also known as
combined heat, cooling and power).
[Guidelines clause 32.1]
ARENA may amend or add to the above definition by approving other renewable energy
technologies and renewable energy sources. Where this occurs, ARENA will issue a new
version of this Information Guide.
Examples of technologies that are ineligible for the Program include:
a. energy efficiency technologies that do not involve renewable energy sources, such as
technologies that reduce the energy used by or increase the efficiency of appliances,
equipment, buildings or vehicles; and
b. demand side management technologies, such as technologies that reduce or shift
consumer demand for energy at times of energy peaks and constraints.
The technology innovation chain means the process of development, demonstration and
early-stage deployment of new technologies, as follows:
a. development proposals are those that synthesise new knowledge into an innovative
new idea and subsequent development to an end use concept which, if successful,
could have widespread commercial potential. This includes proof-of-concept
activities.
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b. demonstration proposals are those that aim to test and show the technology is
viable in real world applications with market potential. This includes pilot-scale and
large-scale projects to demonstrate the technical feasibility, reliability and durability
of a new technology.
c. early-stage deployment proposals are those that expand the use of the technology,
including through supported commercial methods, leading to the concept or product
becoming widely available and adopted in the broader market. This includes early-
stage deployment projects.
The technology innovation chain does not include early stage research and development
activities or commercial scale deployment.
[Guidelines clause 32.1]
Through the Program, ARENA is seeking to support a diverse portfolio of innovative
renewable energy technologies to progress along the technology innovation chain as
illustrated in Figure 1.
Figure 1: Renewable energy technology pipeline and financing needed along the technology
innovation chain.
PROGRAM SCOPE
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2.3. What is a Measure?
Measure means
a. renewable energy industry capacity building activity that involves research and
development to build the renewable energy industry in Australia including, but not
limited to, modelling, feasibility studies, methodology development, data collection and
knowledge dissemination;
b. renewable energy industry development activity that provides strategic and commercial
development advice to start-up Australian companies in order to prepare management
teams for further investment in renewable energy including, but not limited to, skills
development, training, course materials, collaboration activities, best practice guidelines
and standards development; or
c. a preparatory activity for a Project.
[Guidelines clause 32.1]
ARENA may amend or add to the above definition by approving other related industry
activities. Where this occurs, ARENA will issue a new version of this Information Guide.
Measures will typically involve activities to develop documents or prepare data or hold
events for widespread benefit across the renewable energy industry. A feasibility study or
other preparatory activity for a Project may also be considered for funding as a Measure.
Measures are intended to support renewable energy technologies progressing along the
technology innovation chain, such as those renewable energy technology priorities detailed
in Appendix B of this Information Guide.
2.4 Features of the Program
The Program is able to consider for funding a range of renewable energy technology Projects
and Measures using a common set of Eligibility Criteria and Merit Criteria for all renewable
energy technologies at all points along the technology innovation chain within the scope of
the Program (see Figure 1 on page 10). Each proposal is assessed on its own merits.
For Projects:
The application process involves two-phases, with Phase 1 - the pre-qualification
phase - involving an expression of interest (EOI) to determine the suitability and
potential merit of the proposed Project, followed by Phase 2 - the consideration for
funding phase - with an invitation for selected applicants to submit a Project funding
application for assessment of the Project.
EOIs may be lodged with ARENA at any time.
Only a limited number of EOIs that satisfy the Merit Criteria to a high standard will
be invited to submit a Project funding application for assessment in Phase 2.
Through each of these phases, ARENA will seek to maintain an ongoing relationship
with Project proponents by assigning a Client Manager to each applicant, thereby
streamlining future assessment of the current or future proposals.
13
Potential applicants should refer to section 3 for details on the Project application
process including the Eligibility Criteria and Merit Criteria for Projects.
For Measures:
The application process involves a single stage process, i.e. no EOI is required.
Measure applications may be lodged with ARENA at any time.
Potential applicants should refer to section 4 for details on the Measures application
process including the Eligibility Criteria and Merit Criteria for Measures.
Total funding of up to $127 million is available under the Program. This figure includes
funding committed to existing Projects and Measures. If ARENA decides to make additional
funding available for the Program, ARENA will issue a new version of this Information Guide.
2.5. How much funding can I apply for?
The Program has considerable flexibility about the funding it could provide for a Project or
Measure. As such, there is:
no maximum funding available for a Project or Measure, other than the limit of
available Program funds; and
no specified proportion of matching funding required from the applicant.
Applicants should note, however:
Funding for any individual Project is expected to be between $2 million and
$30 million.
Funding for any individual Measure is expected to be up to $3 million.
o Higher funding amounts will be considered on a case by case basis.
Applicants will need to present a strong case to justify seeking more
funding than the amounts specified above.
The Program will not normally fund the majority of the cost of a Project or Measure.
o Applicants will need to present a strong case to justify the Program
providing the majority of the funding for a Project or Measure.
Proposals seeking 100% of the funding required for a Project or Measure, or nearly
100% of the required funding, are likely to be found to have low merit and not be
accepted for funding.
Projects further along the technology innovation chain towards deployment or
applying for higher funding amounts will be expected to contribute a larger
proportion of the total funding for the Project.
ARENA will not provide funding for a Project or Measure prior to signing a Funding
Agreement with an applicant.
ARENA may offer less or more funding than sought by an applicant in a proposal and
ARENA may attach conditions or other requirements to the funding offer.
14
The funding sought from the Program compared with the total cost of a Project or Measure
is a critical Merit Criterion for both Projects and Measures with proposals seeking a lower
proportion of funding from the Program having higher merit. (See section 3.3, for Projects,
and section 4.3, for Measures, for more information about these Merit Criteria.) For this
reason, applicants:
need to present a strong case to justify the amount of funding sought;
should provide other sources of funding for a Project or Measure; and
should only apply for the minimum amount of funding needed for the Project or
Measure to proceed.
2.6. Other considerations
In planning their Projects and Measures, applicants should allow time within their project
plans for the assessment and consideration by ARENA of their proposal and the negotiation
and execution of a Funding Agreement. More information on the process for assessment of
Projects is contained in section 3 of this Information Guide and more information on the
process for assessment of Measures is contained in section 4 of this Information Guide. The
requirements for Funding Agreements are detailed in section 5 of this Information Guide.
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3. PROJECTS
3.1. Overview of the application process
Section 3 of this Information Guide provides further information on the application process
for Projects. Applicants may apply for consideration of a Project at any time using the
Project EOI Form, which is available from the ARENA website at www.arena.gov.au. An
applicant may also submit EOIs for more than one Project and may participate in other
Projects or Measures as a member of a joint venture or consortium.
The Project application process is undertaken in two phases:
Phase 1 – the pre-qualification phase, including lodgement of an EOI by an applicant and its
assessment by ARENA.
In this phase ARENA will assess the EOI against the Eligibility Criteria and Merit
Criteria.
The lodgement of an EOI is mandatory for a proposal for funding of a Project to
proceed to the next phase.
The information required from applicants in Phase 1 is less detailed than the
information required in Phase 2, but should be of sufficient detail to enable the
assessment of the eligibility and merit of the Project.
After the lodgement of EOIs, an eligible applicant may be invited to submit a Project
funding application, offered the opportunity to consult with ARENA staff to further
develop their EOI, or the EOI may not be accepted for funding.
Only a limited number of EOIs that satisfy the Merit Criteria to a high standard will
be invited to submit a Project funding application as part of Phase 2.
Some applicants with EOIs that are assessed by ARENA as eligible and highly
prospective, but who are not invited to submit a Project funding application, may be
invited to consult with ARENA staff to develop a revised EOI and further supporting
documents for reassessment of their Project.
Applicants should refer to sections 3.4 to 3.6 for more information on Phase 1.
Phase 2 – the funding consideration phase commences with an invitation for an applicant to
submit a Project funding application.
Phase 2 involves ARENA undertaking a detailed assessment of the Project and
making a decision on whether to offer the applicant funding for their Project.
The information required in Phase 2 is more detailed than in Phase 1, with detailed
evidence and documentation required to describe and support the applicant’s
Proposal and to support the applicant’s claims against the Eligibility Criteria and
Merit Criteria.
Applicants invited to submit a Project funding application should refer to sections 3.8
and 3.9 for more information on Phase 2.
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Grants of funding for Projects will be provided under the Funding Agreement for the
Program. Copies of the Funding Agreement template are available on the ARENA website at
www.arena.gov.au.
Applicants should contact ARENA by email at emerging.renewables@arena.gov.au to clarify
any questions they may have about the Program or the application process for Projects.
3.2. Project Eligibility Criteria
To be eligible for support under the Program, applicants proposing a Project must
demonstrate that they satisfy all seven of the Eligibility Criteria detailed in this section 3.2.
Project Eligibility Criterion 1 – Corporations Act entity
At the time of entering into a Funding Agreement, the applicant must be an Australian
entity incorporated under the Corporations Act 2001. To avoid doubt:
i ARENA will not enter into a Funding Agreement with an unincorporated joint
venture;
ii but the applicant may be the lead entity for a consortium responsible for the Project,
in which case, the other consortium members do not need to be incorporated.
[Guidelines clause 12.2.a]
Applicants cannot be unincorporated joint ventures. Where the applicant is the lead entity
representing a consortium or joint venture, it must meet the requirement for incorporation
under the Corporations Act 2001, though the other members of the consortium or joint
venture do not need to be incorporated. If the applicant’s proposal is successful and the
applicant receives a funding offer, the lead entity of a joint venture or consortium will need
to be incorporated and enter into a Funding Agreement with ARENA and then enter into
back to back agreements with other consortium or joint venture partners.
State or Territory government agencies and Australian research institutions that are not
incorporated under the Corporations Act 2001 are not eligible to be an applicant for a
Project, but are encouraged to participate in consortiums, joint ventures or other
partnerships with industry.
Project Eligibility Criterion 2 – Project eligibility
An applicant for a Project must be able to demonstrate to the satisfaction of ARENA that the
project described in the proposal meets the definition of a Project.
[Guidelines clause 12.2.b]
ARENA will use the definition of a Project in section 2.2 of this Information Guide to assess
Projects against this criterion.
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Project Eligibility Criterion 3 –Project is located in Australia
An applicant for a Project must be able to demonstrate to the satisfaction of ARENA that the
Project will take place primarily in Australia.
[Guidelines clause 12.2.c]
The applicant will need to demonstrate to the satisfaction of ARENA that the Project will
take place primarily in Australia. This means that the Project must be either:
constructed in Australia; or
if no construction is involved, the majority of the technology development and all
key personnel must be located in Australia.
Within this requirement, applicants may be able to purchase services, supplies and
technology from overseas, provided that the expenditure on overseas sourced inputs is
unable to be undertaken in Australia and is agreed by ARENA.
Project Eligibility Criterion 4 – Access to intellectual property
An applicant for a Project must be able to demonstrate to the satisfaction of ARENA that the
applicant has ownership of, access to, or the beneficial use of, any intellectual property
necessary to carry out the Project.
[Guidelines clause 12.2.d]
The applicant must be able to provide evidence that they have the necessary rights to any
intellectual property (IP) needed to undertake the Project. This includes identifying and
dealing with:
any third party background intellectual property, and the measures that will be put
in place to ensure continuing access to this intellectual property and to protect it;
the effect any third party ownership of background intellectual property will have on
the ownership of intellectual property expected to be created by the Project;
any measures that may be needed to protect intellectual property created by the
Project; and
any licensing arrangement required.
Evidence to support claims against this Eligibility Criterion could include patents, licences or
any relevant intellectual property agreements.
Following its consideration of a proposal for a Project, ARENA may request evidence or
documentation supporting the applicant’s claim of access to the appropriate rights to any
intellectual property necessary to carry out the Project, or a documented plan detailing the
proposed course of action to acquire such access.
A template for an intellectual property plan is available on the ARENA website at
www.arena.gov.au and is required as part of a Project funding application.
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Project Eligibility Criterion 5 – Compliance with Equal Opportunity for Women in the
Workplace
An applicant must not be named as an organisation that has not complied with the Equal
Opportunity for Women in the Workplace Act 1999 (Cth).
[Guidelines clause 12.2.e]
The Commonwealth has a policy of not entering into agreements with or providing
discretionary grant or loan funds to organisations that do not comply with their obligations,
if any, under the Equal Opportunity for Women in the Workplace Act 1999 (Cth). Applicants
must sign the declaration in the EOI Form and the Project Application Form to demonstrate
that they understand and meet their obligations, if any, under the Act. ARENA will also
check applicants’ names against the List of Non-Compliant Organisations on the website of
the Equal Opportunity for Women in the Work Place Agency at www.EOWA.gov.au.
Project Eligibility Criterion 6 – Need for funding
ARENA will assess the applicant’s need for funding for the Project taking into account the
extent of funding for the Project from other sources.
[Guidelines clause 12.2.f]
Applicants need to show that they have a need for funds to undertake the Project and that it
would be unreasonable to expect that they should obtain the funding they are seeking from
the Program from other sources. Applicants must detail:
The financial status of the applicant and any supporting consortium, including
cashflow, debt and assets.
The actions the applicant has taken to obtain other sources of funding for the
Project, including funding from other levels of government and from commercial
sources.
Why the Project will not proceed in the absence of the funding sought from the
Program.
Project Eligibility Criterion 7 – Additional requirements for lodgement of proposals
An applicant must also comply with all other requirements for Project proposals specified in
this Information Guide.
[Guidelines clause 12.2.f]
Applicants must comply with the requirements for submitting a proposal in sections 3.4 and
3.5 of this Information Guide (for EOIs) and section 3.8 (for Project funding applications) or
ARENA may return the proposal to the applicant without assessing the proposal.
Applicants must also comply with the requirements for disclosure of legal proceedings in
section 6.6 of this Information Guide.
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3.3. Project Merit Criteria
ARENA will assess eligible Projects for overall value for money against the six Merit Criteria
detailed in this section. Applicants must address these six Merit Criteria in both their EOIs
and Project funding applications.
The six Merit Criteria for Projects are not weighted. EOIs will need to demonstrate a high
level of merit against all Merit Criteria to be invited to submit a Project funding application,
and applicants with Project funding applications will need to demonstrate a high level of
merit against all Merit Criteria to receive a funding offer.
The information in this section is provided as guidance to help applicants to prepare their
EOI or Project funding application to address each of the six Merit Criteria. ARENA will also
use this guidance when assessing Project proposals. This guidance, however, is not
exhaustive and applicants are able to include in their proposal any other information that
they consider to be relevant to the assessment of their claims against the Merit Criteria.
The quality and level of evidence required to substantiate claims against the Merit Criteria
depend on the size of the Project and its stage of development. In general, greater
substantiation of claims will strengthen an applicant’s claims for its Project against the
Merit Criteria. Applicants should provide whatever evidence they consider necessary to
substantiate their claims against the Merit Criteria. Applicants should also provide details
on calculations and assumptions underlying any data or estimates provided in their
proposals, including details on offtake agreements and forecast electricity and Renewable
Energy Certificate (REC) prices. Where this information cannot be provided within the
constraints set by the EOI Form, applicants should indicate that further information is
available for consideration by ARENA on request.
Projects Merit Criterion A – Potential to reduce the cost of renewable energy
A proposal for funding of a Project must explain the potential of the renewable energy
technology encompassed in the Project to deliver economic benefits by lowering the cost
and increasing the supply of renewable energy in Australia over the long term.
[Guidelines clause 13.2.a]
This Merit Criterion focuses on the potential for the Project to reduce cost of a renewable
energy technology.
Phase 1 – EOI
Merit may be demonstrated by the applicant describing briefly:
a. the main economic costs and benefits of the renewable energy technology, both in
Australia and internationally, including the potential for the renewable energy
technology to reduce the cost of energy from renewable sources;
b. the cost of the renewable energy technology compared with other renewable energy
technologies, both in similar and differing applications;
20
c. the expected pathway to wide-scale deployment and cost competitiveness of the
renewable energy technology, including a timeline; and
d. where relevant, the potential contribution of the renewable energy technology to
large scale, baseload, electricity generation from renewable sources of energy.
Phase 2 – Project funding application
Merit may be demonstrated by the applicant detailing:
a. The demonstration of a clear and direct pathway to the wide-scale deployment of
the renewable energy technology, including a timeline. Applicants should document
this clear and direct pathway in the commercialisation strategy for the renewable
energy technology, which should be attached to the Project funding application (see
section 3.8). For renewable energy technologies that generate electricity, applicants
should provide estimates of the levelised cost of electricity (LCOE) generated by the
technology, how this LCOE is likely to change over time and details on the
assumptions and calculations used to derive these estimates of LCOE. Guidance on
how to calculate LCOE is available on the ARENA website at www.arena.gov.au.
b. Evidence of the cost competitiveness of the renewable energy technology compared
with other energy sources and technologies or provision of a detailed pathway to
cost competitiveness in the commercialisation plan for the renewable energy
technology, specifying how increasing scale, progressive technical advances,
technology proving, market demonstration or other credible means will reduce the
cost of the renewable energy technology over time. In addition, for renewable
energy technologies that produce electricity, applicants should provide estimates of
the levelised cost of electricity produced by the renewable energy technology, how
this cost is expected to change over time and details on how these cost estimates
have been derived.
c. Evidence, where relevant, of the extent to which the renewable energy technology
can provide dispatchable electricity supply, including any hybrid or backup power
generation.
d. Comprehensive economic analysis of the costs and benefits of the renewable energy
technology, both in Australia and internationally, showing the potential of the
technology to lower the cost of renewable energy in Australia.
Projects Merit Criterion B – Innovation and technical strength
A proposal for funding of a Project must detail the technical strength of the Project to
deliver clearly defined technical outcomes to progress the renewable energy technology
along the technology innovation chain and the national and international significance of the
technical innovation involved.
[Guidelines clause 13.2.b]
A critical aspect of all Projects is the innovative nature of the renewable energy technology
proposed and how the Project will move this technology along the technology innovation
chain to the next logical step for the renewable energy technology on the pathway toward
commercial deployment.
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Applicants should include details of the technology readiness level (TRL) of the renewable
energy technology in their Project using an internationally accepted technology readiness
scale and the expected TRL of the renewable energy technology on completion of the
Project. Guidance on TRLs is available on the ARENA website at www.arena.gov.au.
Phase 1 – EOI
Merit may be demonstrated by the applicant describing briefly:
a. the main technical outcome to be delivered by the Project, including key milestones
and dates;
b. the technical feasibility of the Project;
c. the innovative aspects of the Project that represent a significant step forward in the
development of the renewable energy technology or the application of the
renewable energy technology in Australia; and
d. where the renewable energy technology stands in relation to other similar
technologies internationally in terms of cost and stage of development.
Phase 2 – Project funding application
Merit may be demonstrated by the applicant detailing:
a. A well-articulated project plan that covers technical feasibility and design and
includes a clear and concise description of the Project, clearly defined technical
outcomes, a sound technical approach to accomplish the Project, and feasible
deliverables, milestones and timelines for undertaking the Project. Applicants
should note that a project plan is not a description of the technology.
b. An explanation of the innovative aspects of the renewable energy technology and an
explanation of how the Project will progress the development of the renewable
energy technology.
c. A technical comparison of the renewable energy technology with other renewable
energy technologies.
d. An explanation, where relevant, of why the adaptation of an existing renewable
energy technology is needed to take advantage of renewable energy resources in
Australia.
e. A risk management plan that includes the main technical risks to the Project and
how these will be managed.
f. An intellectual property plan for the renewable energy technology required for the
Project and developed in the course of the Project, which includes the origin and
ownership of background intellectual property.
Projects Merit Criterion C – Contribution to the Program’s technology priorities
A proposal for funding of a Project must identify the contribution of the Project to the
renewable energy technology priorities detailed in Appendix B of this Information Guide.
[Guidelines 13.2.c]
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The renewable energy technology priorities for the Program may change from time to time
and when this occurs, the revised priorities will be published on the ARENA website at
www.arena.gov.au and in a revised version of this Information Guide. Projects will be
assessed against those technical priorities that are current at the time a proposal is
submitted to the Program.
An important aspect of the contribution of the Project under this criterion is the extent of
knowledge sharing proposed by the applicant as set out in the Knowledge Sharing Plan
required with the Project funding application. For more information on the knowledge
sharing requirements for the Program, see section 5.6 of this Information Guide.
Phase 1 – EOI
Merit may be demonstrated by the applicant describing briefly:
a. which technology priority the Project addresses and why;
b. how the Project will contribute to the Program's objectives; and
c. how the Project will fit within the Program’s portfolio mix of technologies.
Phase 2 – Project funding application
Merit may be demonstrated by the applicant detailing:
a. the technology priority the Project addresses and why;
b. how the Project will contribute to the Program’s objectives; and
c. a proposed knowledge sharing plan as per section 5.6 of this Information Guide.
Projects Merit Criterion D – Applicant capability
A proposal for funding of a Project must detail the capability of the applicant and any
proposed supporting consortium to implement the Project as set out in the proposal,
including the:
i management capability and expertise of the applicant;
ii track record of the applicant in undertaking similar projects, including delivering
projects on time and on budget;
iii roles of consortium members and the status of any relevant agreements between
consortium members; and
iv comprehensiveness of planning for the Project, including costings, budgets and
readiness to undertake the Project.
[Guidelines clause 13.2.d]
The purpose of this Merit Criterion is to ensure applicants have the capability and expertise
to undertake and complete the Project successfully.
Phase 1 – EOI
Merit may be demonstrated by the applicant describing briefly:
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a. the key personnel upon whom the Project depends (including technical and
commercial personnel) and an outline of how their experience and capability will
ensure delivery of the Project;
b. any similar projects completed and how this experience will contribute to delivering
the proposed Project on time and on budget;
c. where relevant, the roles of consortium members and the status of any relevant
agreements between consortium members;
d. an indicative costing and budget for the Project on the “Budget and Funding
Sources” form provided on the ARENA website at www.arena.gov.au; and
e. the status of the project plan for the Project and any government approvals that the
Project has secured.
Phase 2 – Project funding application
Merit may be demonstrated by the applicant providing evidence in support of the factors
listed in this Merit Criterion. This may include:
a. Details of key personnel outlining their level of expertise and professional experience
in:
project management, with particular regard to the scale of the proposed
Project;
business and commercial management, including in human resources and
financial management; and
delivering engineering or technical outcomes.
b. Details of the track record, experience and reputation of the applicant for achieving
business, engineering or research outcomes professionally.
c. Evidence of a core business that is directly relevant to the Project.
d. Acknowledgement of relevant State and Territory approval processes and evidence
to support a high degree of certainty that these approvals will be obtained and
identification of the environmental and other approvals required for the Project and
the timeframe for obtaining these approvals.
e. Details, where relevant, of the capability of consortium members, their roles in the
Project, and the extent of their commitment to the Project as evidenced by the
nature and status of formal agreements between consortium members.
f. A detailed budget of eligible expenditure and ineligible expenditure for the Project
consistent with the Eligible Expenditure Guidelines at Appendix A to this Information
Guide and detailed in the “Budget and Funding Sources” form required for all
proposals.
g. A comprehensive project plan for the Project, which includes milestones and
timelines for undertaking the Project.
h. A risk management plan that includes key personnel risks and how these will be
managed.
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i. A detailed commercialisation strategy for the Project, which includes:
a clearly defined commercial pathway for the renewable energy technology
to enter the market or to progress further along the technology innovation
chain, as appropriate to the stage of development of the renewable energy
technology; and
an understanding of the critical structural or market challenges to be
resolved before the renewable energy technology can compete in the energy
market in Australia.
As required by section 6.7 of this Information Guide, applicants must notify ARENA promptly
and in writing of any change to the capacity of the applicant to undertake the Project
successfully, including any change to the skills, resources or corporate or financial backing
available to the Project.
Project Merit Criterion E – Funding sought
In assessing proposals, ARENA will compare the funding sought from the Program for the
Project with the total cost of the Project, taking into account:
i other expected sources of funding and evidence of any funding that has been
secured;
ii the financial capacity of the applicant to fund its contribution to the costs of the
Project; and
iii the position of the Project along the technology innovation chain.
[Guidelines clause 13.2.e]
Under this Merit Criterion, ARENA will assess whether the applicant and its supporting
sources of finance have the financial capacity and level of commitment to deliver the Project
successfully. ARENA will also assess whether the amount of funding sought and the total
cost of the Project is appropriate for the stage of development of the renewable energy
technology.
The greater the degree of commitment of funding from other sources for the Project, the
higher the level of merit of the proposal under this Merit Criterion. Similarly, the lower the
proportion of funding required from the Program for the Project, the higher the merit of the
proposal under this Merit Criterion. For this reason, proposals seeking 100% of the funding
required for a Project or nearly 100% of the required funding, are likely to be found to have
low merit and not be accepted for funding from the Program.
Applicants should, therefore, provide a financial contribution from their own resources to
their Projects. ARENA expects that applicants with Projects further along the technology
innovation chain will make a larger financial contribution to the Project, than applicants with
Projects at an earlier stage of development. Similarly, ARENA expects that applicants with
higher cost Projects will make a proportionately larger financial contribution to the Project,
than applicants with lower cost Projects. Applicants should identify other funding sources
for their Projects in the “Budget and Funding Sources” form to be attached to the proposal.
25
In addition, while financial contributions to Projects from State and Territory governments
are welcome, the Program would not usually fund Projects that are mostly funded by
government sources.
Phase 1 – EOI
Merit may be demonstrated by the applicant detailing in the “Budget and Funding Sources”
form:
a. the expected sources of funding for the Project including the amounts and sources of
debt and equity for the Project and any planned offtake or sales agreements;
b. any signed financial agreements for the Project;
c. the financial status and viability of the applicant, including cashflow, financial growth
and stability;
d. an explanation of why the ratio of Program funding sought compared with other
funding sources is appropriate for the stage of development of the renewable energy
technology; and
e. any in-kind or other non-cash contributions to the Project.
Phase 2 – Project funding application
Merit may be demonstrated by the applicant detailing:
a. The expected sources of funding for the Project, including the amounts of any debt
or equity contributions to the Project and any offtake agreement or sales
agreements for the Project.
b. For each funding source, the nature and timing of any financial commitments,
including the terms of any signed financial agreements for the Project, noting that
the stronger the commitment of funding from sources other than the Program, the
higher the merit of the Project against this criterion.
c. Information on expected financial stability of the company for the duration of the
Project, including two years of financial information and forward cashflows for the
duration of the Project.
d. The justification for the level of funding from the Program for the Project and how
the level of funding is appropriate for the Project considering its stage of technology
development.
e. Any in-kind or other non-cash contributions.
Project Merit Criterion F – Overall risk
In assessing a Project funding application, ARENA will evaluate the overall risk associated
with the Project as set out in the proposal including, without limitation: compliance,
technical and financial risks.
[Guidelines clause 14.2.g]
26
ARENA will use all material provided by applicants in the assessment of overall risk of the
Project not being completed successfully. This risk assessment will also take into account
other risks identified during the assessment of the Project, including from information
obtained from sources other than the applicant.
Phase 1 – EOI
Merit may be demonstrated by the applicant:
a. describing briefly the key technical and financial risks associated with the Project
together with appropriate mitigation measures for each risk; and
b. providing a statement acknowledging that they have read the draft Funding
Agreement available on the ARENA website at www.arena.gov.au, as well as a
compliance table of any general conditions that the applicant does not accept and
the reason why.
Phase 2 – Project funding application
To enable assessment of Project funding applications against this Merit Criterion, applicants
must provide:
a. A comprehensive risk management plan, in accordance with relevant industry
standards and best practice for this type of project. This risk management plan must
identify and assess the full range of technical, financial and other Project risks, the
treatment strategies proposed for these risks and the residual risk to the Project
remaining after the proposed treatments have been applied. A template for a risk
management plan is available on the ARENA website at www.arena.gov.au.
b. A compliance table stating any general conditions of the draft Funding Agreement
that the applicant does not accept, accepts in part or does not consider to be
applicable to its Project. This compliance table must include reasons why the
applicant does not accept, accepts in part or does not consider a general condition
to be applicable to its Project.
3.4. Phase 1 – Preparation and lodgement of EOIs
Applicants may lodge an EOI for a Project at any time using the EOI Form, which is available
from the ARENA website at www.arena.gov.au. Before submitting an EOI, however,
potential applicants should contact the Emerging Renewables Program Team on the
telephone number or at the email address in section 1.8 of this Information Guide to discuss
their proposed Project.
EOIs are required to include:
A completed “Budget and Funding Sources” form, including an indicative budget and
list of funding sources. The “Budget and Funding Sources” form is available on the
ARENA website at www.arena.gov.au.
A compliance table identifying the general conditions in the Funding Agreement that
the applicant does not accept, accepts in part or does not consider appropriate to its
Project. This compliance table must also include reasons why the applicant does not
accept, accepts in part or does not consider appropriate the general conditions it
27
identifies. A template for the compliance table is available on the ARENA website at
www.arena.gov.au.
Applicants may also include, at their option, a proposed project plan of no more than
10 pages in length. These are the only attachments allowed as part of an EOI. Any other
attachments provided by applicants will be excluded from the assessment process and
returned to the applicant.
The documents listed above are to be attached to the EOI as per the instructions on the EOI
Form. If an EOI is received by ARENA and does not include a completed “Budget and
Funding Sources” form and a compliance table, it may be returned to the applicant without
being assessed.
The EOI Form imposes limits on the amount of information that applicants can provide with
their EOIs. If an applicant has further information that the applicant considers is relevant
for the assessment of their EOI, but this information cannot be included in the EOI Form or
in one of the attachments listed above, the applicant should indicate in the relevant section
of the EOI Form that more information is available on request and indicate what this
information includes.
ARENA supports collaboration between companies and researchers in the renewable energy
sector. By ticking the relevant box on the EOI Form, an applicant may opt to allow the
Project title and the applicant’s contact details to be published on the ARENA website at
www.arena.gov.au for the purposes of information sharing and possible collaboration with
other applicants and organisations. Note, however, that the publication of this information
is a condition of entering into a Funding Agreement, in accordance with section 5.2 of this
Information Guide and clause 22.5 of the Guidelines.
Applicants should submit their EOIs electronically according to the instructions on the
EOI Form. ARENA will acknowledge the receipt of an EOI and send back to the applicant a
copy of the received EOI, which will state the date received and an application number for
the proposal. Once the applicant receives an application number for their proposal, this
must be quoted in any future correspondence with ARENA on the proposal.
Applicants should then send an original signed copy of the EOI Form, which includes the
application number, and one copy of each attachment to the mailing or delivery address
specified in section 1.7 of this Information Guide. Where there is a discrepancy between a
hard copy and an electronic copy of an EOI, the electronic copy will take precedence.
ARENA will provide applicants with a delivery receipt for their EOIs, once the original signed
copy of the EOI has been received.
For all queries about the submission of EOIs, please contact ARENA by email at
emerging.renewables@arena.gov.au.
3.5. Consideration of EOIs
Upon receiving an EOI, ARENA will assess the EOI against the Eligibility Criteria in section 3.2
of this Information Guide. If the EOI is assessed as not meeting the Eligibility Criteria, it will
not be accepted for funding, noting that Project Eligibility Criterion 1 is not required to be
28
satisfied until the applicant enters into a Funding Agreement. Where the EOI is assessed as
meeting the Eligibility Criteria, ARENA will assess the EOI against the Merit Criteria detailed
in section 3.3 of this Information Guide.
ARENA may seek further information from the applicant that clarifies the EOI in relation to
any matter requiring clarification arising from the assessment of the Project. In addition,
ARENA may engage relevant expertise to assist with the assessment of the EOI against
either the Eligibility Criteria or the Merit Criteria.
Following the assessment of an eligible EOI against the Merit Criteria, ARENA will either:
invite the applicant to submit a Project funding application, as detailed in section 3.8
of this Information Guide;
offer the applicant an opportunity to consult with ARENA staff, to further develop its
EOI for reassessment by ARENA; or
not accept for funding the EOI submitted by the applicant.
Applicants will be advised in writing of the outcome of the assessment of their EOI at the
conclusion of the assessment of their EOI. Where the EOI has not been accepted for
funding, the applicant will be provided with feedback on their EOI and the applicant may
submit a revised EOI, once the applicant has received this feedback. In addition, where
possible and appropriate, applicants not awarded funding may be referred by ARENA to
alternative support mechanisms or assistance programs.
Where an applicant receives feedback on a proposal and submits a revised EOI, ARENA may
refuse the EOI for assessment against the Eligibility Criteria and the Merit Criteria, if in the
opinion and absolute discretion of ARENA, the revised EOI does not take account of the
feedback provided by ARENA to the applicant.
ARENA will refuse for assessment an EOI that it has assessed twice previously and not
accepted for funding. If ARENA receives an EOI that, in the opinion and absolute discretion
of ARENA, is an EOI that has been assessed twice by ARENA and not accepted for funding,
the EOI will be returned to the applicant without being assessed.
3.6. Consultation with ARENA staff to further develop EOIs
Applicants who have not been invited to submit a Project funding application following
assessment of their EOI may be offered the opportunity to consult with ARENA staff to
revise and further develop their EOIs for resubmission and reassessment by ARENA.
Revisions to an applicant’s EOI recommended by ARENA may involve changes to the scale or
the proposed budget for the Project or investigating options for support from other sources,
such as State and Territory governments or research institutions. The purpose of revisions
suggested by ARENA staff will be to assist the applicant to improve its EOI so that the
applicant could resubmit the EOI for assessment by ARENA, who may then invite the
applicant to submit a Project funding application, if the proposal is of sufficiently high merit.
Applicants who have been offered the opportunity to consult with ARENA staff to revise
their EOIs will need to work with the Client Manager for their Project. The Client Manager
29
will provide advice and feedback on the EOI. Applicants and Client Managers should agree a
timeframe for the applicant to complete these revisions and submit a revised EOI.
Client Managers cannot provide direct assistance in the preparation of the revised EOI, but
can provide detailed feedback on the documents and information provided in the original
EOI. Client Managers can also provide guidance on whether the revised EOI is suitable to be
resubmitted and reassessed. It remains a matter for the applicant, however, whether and
when to resubmit an EOI for assessment by ARENA.
In the provision of an opportunity for consultation with ARENA staff, ARENA is not
responsible or liable for any advice, comments, consultation or assistance provided by
ARENA staff, and the opportunity for consultation must not be taken to imply that ARENA
will invite the applicant to submit a Project funding application for their Project.
Applicants will be advised in writing of the outcome of the assessment of their revised EOI
at the conclusion of the assessment of their revised EOI.
3.7. Collaboration
ARENA may choose to facilitate collaboration between any applicants with similar or
complementary EOIs or between applicants and other research institutions or funding
bodies, to develop consortia to finance and carry out Projects. Any such facilitation of
collaboration, including the release of confidential information to another applicant or
person, will be subject to the applicant’s prior consent.
If an applicant proceeds to collaborate and wants the revised collaborative Project to be
considered under the Program, the applicant or a new applicant must submit a new EOI.
In the facilitation of collaboration by ARENA, ARENA is not responsible or liable for any
comments, consultation or assistance provided by ARENA staff, and the opportunity must
not be taken to imply that ARENA will invite the applicant to submit a Project funding
application or that ARENA will offer funding for the collaborative Project.
3.8. Phase 2 –Preparation and lodgement of Project funding applications
Following the assessment of an EOI by ARENA, ARENA may invite an applicant to submit a
Project funding application for the Project proposed in the applicant’s EOI. Applicants must
use the Project Application Form provided by ARENA to submit a Project funding application.
Applicants invited to submit a Project funding application should do so in accordance with
this Information Guide, the Project Application Form and any related documents. Project
funding applications should be submitted by the deadline specified in the invitation letter. If
an applicant does not submit its Project funding application by the deadline specified in the
invitation letter, ARENA may, at its absolute discretion, withdraw the invitation for the
applicant to submit a Project funding application. Applicants may apply for extensions of
the deadline to submit a Project funding application, but such applications must be
submitted in writing and may be granted at the absolute discretion of ARENA.
30
Applicants who are invited to submit a Project funding application are encouraged to
consult with ARENA as they prepare their Project funding application. ARENA, however, is
not responsible or liable for any advice, comments, consultation or assistance provided by
ARENA staff and any such advice, comments, consultation or assistance must not be taken
to imply that ARENA will offer the applicant funding for their Project.
The Project funding application will have the same application number as the EOI on which
the applicant was invited to submit a Project funding application. The application number
must be quoted in any correspondence with ARENA on the Project funding application.
Project funding applications are required to include:
A detailed project plan including a comprehensive risk management plan.
A completed “Budget and Funding Sources” form, including a detailed budget and
list of funding sources. The “Budget and Funding Sources” form is available on the
ARENA website at www.arena.gov.au.
A compliance table identifying the general conditions in the Funding Agreement that
the applicant does not accept, accepts in part or does not consider appropriate to its
Project. This compliance table must also include reasons why the applicant does not
accept, accepts in part or does not consider appropriate the general conditions it
identifies.
A commercialisation strategy that describes a clear and direct pathway to the wide-
scale deployment of the renewable energy technology, including a timeline.
A Knowledge Sharing Plan as per the requirements of section 5.6 of this
Information Guide.
An intellectual property (IP) management plan that includes and identifies:
o any third party background intellectual property, and measures that will be
put in place to ensure continuing access to and protection of this intellectual
property;
o the effect any external ownership of background intellectual property will
have on ownership of intellectual property expected to be created by the
Project;
o any measures that may be needed to protect intellectual property created by
the Project; and
o any licensing arrangement required.
If a Project funding application is received by ARENA and does not include the documents
listed above, it may be returned to the applicant without being assessed.
In preparing a Project funding application, applicants should:
consider that long term operational testing of at least 12 months may be necessary
to test full field operability;
provide details of the current technology readiness of the technology measured
against a suitable internationally accepted readiness scale, and an indication of the
31
technology readiness the technology will be at following the completion of the
Project;
provide data and any other information needed to substantiate claims made in the
proposal;
provide details of any assumptions used in calculations, such as any offtake
agreements and forecast Renewable Energy Certificate (REC) prices; and
provide information on expected financial stability of the company for the duration
of the Project, including two years of financial information and forward cashflows for
the duration of the Project.
The method for submission of the Project funding application will be detailed in the
invitation letter to the applicant inviting the submission of a Project funding application.
Any hard copies of documents required by ARENA are to be posted to the mailing address
for the Program specified in section 1.7 of this Information Guide or hand-delivered to the
delivery address for the Program in section 1.7.
3.9. Consideration of Project funding applications
Upon receiving a Project funding application, ARENA will assess the Project funding
application against the Eligibility Criteria set out in section 3.2 of this Information Guide. If
the Project funding application is assessed as not meeting the Eligibility Criteria, it will not
be accepted for funding, noting that Project Eligibility Criterion 1 is not required to be
satisfied until the time of entry into a Funding Agreement. Where the Project funding
application is assessed as meeting the Eligibility Criteria, ARENA will assess the Project
funding application against the Merit Criteria detailed in section 3.3 of this Information
Guide.
ARENA may seek further information from the applicant that clarifies the Project funding
application in relation to any matter requiring clarification arising from the assessment of
the Project. This may include inviting the applicant to present to the ARENA Board or to
ARENA staff and answer questions from ARENA Board members or ARENA staff on the
Project. In addition, ARENA may engage relevant expertise to assist with the assessment of
the Project funding application against either the Eligibility Criteria or the Merit Criteria.
Following the assessment of a Project funding application, ARENA will write to the applicant
to advise the applicant of the outcome of the assessment of their Project. If the Project has
been accepted for funding, the letter will detail the amount of any grant to be offered by
ARENA and any conditions attached to this funding offer. Applicants offered funding will be
required to enter into a Funding Agreement with ARENA. A funding offer may be for less or
more than the amount of funding requested by the applicant and may exclude parts of a
Project submitted by an applicant or be for a smaller scale Project. The decision of ARENA
on whether or not to offer funding will be final.
If unsuccessful with its proposal, the applicant will be offered the opportunity for feedback
from ARENA on the eligibility and merit of their Project. Where possible and appropriate,
applicants not awarded funding will be referred by ARENA to alternative support
mechanisms or assistance programs.
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Where an applicant receives feedback on a proposal and submits a revised Project funding
application, ARENA may refuse the Project funding application for assessment against the
Eligibility Criteria and the Merit Criteria, if in the opinion and absolute discretion of ARENA,
the revised Project funding application does not take account of the feedback provided by
ARENA to the applicant.
ARENA will refuse for assessment a Project funding application that it has assessed twice
previously and not accepted for funding. If ARENA receives a Project funding application
that, in the opinion and absolute discretion of ARENA, is a Project funding application that
has been assessed twice by ARENA and not accepted for funding, the Project funding
application will be returned to the applicant without being assessed.
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4. MEASURES
4.1. Overview of the application process
Section 4 of this Information Guide provides information on the application process for
Measures. Applicants may apply for funding for a Measure at any time and must use the
Measure Application Form available from the ARENA website at www.arena.gov.au. An
applicant may submit Measure applications for more than one Measure and may participate
in other Projects or Measures as a member of a joint venture or consortium.
The Measure Application Form is intended to assist applicants to check their eligibility to
apply for the Program and to assist them to address the Merit Criteria. The Measure
Application Form also provides the basis for the Measure application to be assessed for
funding by ARENA against the Eligibility Criteria and the Merit Criteria.
The application process for Measures is a single stage process and no separate “expression
of interest” or EOI is required.
Where the funding offer for a Measure is less than $10,000, the Funding Agreement will not
be used to provide the grant to the applicant. Instead, the grant will be provided by way of
a Letter of Agreement. Copies of the Funding Agreement template and the Letter of
Agreement are available on the ARENA website at www.arena.gov.au.
Applicants should contact ARENA by email at emerging.renewables@arena.gov.au to clarify
any questions they may have about the Program or the application process for Measures.
4.2. Measure Eligibility Criteria
To be eligible for support under the Program, applicants proposing a Measure must
demonstrate that they satisfy all six of the Eligibility Criteria detailed in this section 4.2.
Measure Eligibility Criterion 1 – Australian Business Number
At the time of entering into a Funding Agreement, an applicant for a Measure must hold an
Australian Business Number (ABN).
[Guidelines clause 17.2.a]
The applicant may be the lead entity representing a joint venture or a consortium of
entities. Where this is the case, the applicant must meet the requirements for an ABN,
although the other members of the consortium or joint venture do not need to meet this
requirement. If the Measure application is successful and the applicant is offered funding
for its Measure, the applicant representing a consortium or joint venture will need to enter
into a Funding Agreement with ARENA and may also need to enter into back to back
agreements with its consortium or joint venture partners.
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State and Territory government agencies and Australian research institutions are eligible to
apply for funding of a Measure, as long as they hold an ABN.
Measure Eligibility Criterion 2 – Eligibility of a Measure
An applicant for funding of a Measure must be able to demonstrate to the satisfaction of
ARENA that the activity described in the Measure application meets the definition of a
Measure.
[Guidelines clause 17.2.b]
ARENA will use the definition of a Measure in section 2.3 of this Information Guide to assess
proposals against this criterion.
Measure Eligibility Criterion 3 – Access to Intellectual Property
An applicant for funding of a Measure must be able to demonstrate to the satisfaction of
ARENA that it has ownership of, access to, or the beneficial use of, any intellectual property
necessary to carry out the Measure.
[Guidelines clause 17.2.c]
The applicant must be able to provide evidence that they have the necessary rights to any
intellectual property required to undertake the Measure. This includes identifying and
dealing with:
any third party background intellectual property, and the measures that will be put
in place to ensure continuing access to this intellectual property and to protect it;
the effect any third party ownership of background intellectual property will have on
the ownership of intellectual property expected to be created by the activity;
any measures that may be needed to protect intellectual property created by the
activity; and
any licensing arrangements required.
Evidence to support claims against this Eligibility Criterion could include patents, licences or
any relevant intellectual property agreements.
As part of its consideration of a Measure application, ARENA may request evidence or
documentation supporting the applicant's claim to have access to the appropriate rights to
any intellectual property necessary to undertake the Measure, or a documented plan
detailing the proposed course of action to acquire such access.
A template for an intellectual property plan is available on the ARENA website at
www.arena.gov.au.
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Measure Eligibility Criterion 4 – Compliance with Equal Opportunity for Women in the
Workplace
An applicant for funding of a Measure must not be named as an organisation that has not
complied with the Equal Opportunity for Women in the Workplace Act 1999 (Cth)
[Guidelines clause 17.2.d]
The Commonwealth has a policy of not entering into agreements with or providing
discretionary grant or loan funds to organisations that do not comply with their obligations,
if any, under the Equal Opportunity for Women in the Workplace Act 1999 (Cth). Applicants
must sign the declaration in the Measure Application Form to demonstrate that they
understand and meet their obligations, if any, under the Act. ARENA will also check
applicants’ names against the List of Non-Compliant Organisations on the website of the
Equal Opportunity for Women in the Work Place Agency at www.eowa.gov.au.
Measure Eligibility Criterion 5– Need for funding
ARENA will assess the applicant’s need for funding for the Measure, taking into account the
extent of funding for the Measure from other sources.
[Guidelines clause 17.2.e]
Applicants need to show that they have a need for funds to undertake the Measure and that
it would be unreasonable to expect that they should obtain the funding they are seeking
from the Program from other sources. Applicants must detail:
The financial status of the applicant and any supporting consortium, including
cashflow, debt and assets.
The actions the applicant has taken to obtain other sources of funding for the
Measure, including funding from other levels of government and from commercial
sources.
Why the Measure will not proceed in the absence of the funding sought from the
Program.
Measure Eligibility Criterion 6 – Additional requirements for lodgement of proposals
An applicant must also comply with all other requirements for Measure applications
specified in this Information Guide.
[Guidelines clause 17.2.f]
Applicants must comply with the requirements for submitting a Measure application in
section 4.4 and 4.5 of this Information Guide or ARENA may return the Measure application
to the applicant without assessing the Measure application.
Applicants must also comply with the requirements for disclosure of legal proceedings in
section 6.6 of this Information Guide.
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ARENA may also deem a Measure application to be ineligible under this Eligibility Criterion
where the Measure application is subject to due diligence or other investigation to be
performed by or for the applicant after the Measure application has been submitted.
4.3. Measure Merit Criteria
ARENA will assess eligible Measures for overall value for money against the four
Merit Criteria detailed in this section. Applicants must address these four Merit Criteria in
their Measure applications.
The four Merit Criteria for Measures are not weighted. Measure applications will need to
demonstrate a high level of merit against all four Merit Criteria for applicants to receive a
funding offer.
The information in this section is provided as guidance to help applicants to prepare their
Measure applications to address each of the four Merit Criteria. ARENA will also use this
guidance when assessing Measure applications. This guidance, however, is not exhaustive
and applicants are able to include in their Measure application any other information that
they consider to be relevant to the assessment of their claims against the Merit Criteria.
The quality and level of evidence required to substantiate claims against the Merit Criteria
depend on the size of the Measure and its stage of development. In general, however,
greater substantiation of claims will strengthen an applicant’s claims for its Measure against
the Merit Criteria. Applicants should provide whatever evidence they consider necessary to
substantiate their claims against the Merit Criteria. Applicants should also provide details
on calculations and assumptions underlying any data or estimates provided in their
proposals.
Measure Merit Criterion A – Contribution to the development of the industry
A proposal for funding of a Measure must detail the contribution the proposed Measure
would make to the development of the renewable energy industry in Australia, including the
contribution of the Measure to:
i the renewable energy technology priorities detailed in this Information Guide;
ii increasing Australia’s knowledge of technical developments and expertise in
renewable energy; or
iii preparing for a possible Project proposal for funding under the Program.
[Guidelines clause 18.2.a]
Merit may be demonstrated by:
a. identifying a gap in renewable energy sources, industry skills or renewable energy
capability, and explaining how the proposed Measure closes the identified gap or
gaps; or
b. showing how the proposed Measure is necessary before consideration can be given
to undertaking a possible Project and identifying the likely benefits of the possible
Project for the development of the renewable energy industry in Australia.
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In explaining how the proposed Measure would close any identified gap, the applicant
should take account of the renewable energy technology priorities set out in Appendix B of
this Information Guide and explain how Australia’s skills base or knowledge of renewable
energy sources or technical developments in renewable energy would be increased by the
Measure. Examples of industry skills include modelling, feasibility studies, methodology
development, data collection and knowledge dissemination. Examples of capability
development include skills development, preparation of course materials, collaboration
activities, best practice guidelines and standards development.
Measure Merit Criterion B – Applicant Capability
An applicant for funding of a Measure must detail the capability of the applicant and any
proposed supporting consortium to implement the Measure as set out in the Measure
application, including the:
i management capability and expertise of the applicant;
ii track record of the applicant in undertaking similar activities, including delivering
projects on time and on budget;
iii roles of consortium members and the status of any relevant agreements between
consortium members; and
iv comprehensiveness of planning for the Measure, including costings, budgets and
readiness to undertake the Measure.
[Guidelines clause 18.2.b]
Merit may be demonstrated by the applicant providing evidence in support of the above
factors. This may include:
a. evidence of an appropriate level of expertise within the applicant organisation and
the expertise of key personnel in undertaking similar measures and in business
management;
b. evidence of a core business that is directly relevant to the Measure;
c. where relevant, details of the capability of consortium members, their roles in the
implementation of the Measure and the extent of their commitment to the Measure,
as evidenced by the nature of agreements entered into between consortium
members;
d. a detailed budget of eligible expenditure for the Measure including the breakdown
of information as required by the Eligible Expenditure Guidelines in Appendix A of
this Information Guide; and
e. a detailed business plan for the Measure that includes:
a knowledge sharing plan for the Measure as per section 5.6 of this
Information Guide; and
an intellectual property plan, if relevant.
38
As required by section 6.7 of this Information Guide, applicants must notify ARENA promptly
and in writing of any change to the capacity of the applicant to undertake the Measure
successfully, including any change to the skills, resources or corporate or financial backing
available to the applicant to undertake the Measure.
Measure Merit Criterion C – Funding sought
In assessing a Measure application, ARENA will compare the funding sought from the
Program for the Measure with the total cost of the Measure, taking into account:
i other expected sources of funding and evidence of any funding that has been
secured; and
ii the financial capacity of the applicant to fund its contribution to the costs of the
Measure.
[Guidelines clause 18.2.c]
Under this Merit Criterion, ARENA will assess whether the applicant and its supporting
sources of finance have the financial capacity and level of commitment to deliver the
Measure successfully. ARENA will also assess whether the amount of funding sought and
the total cost of the Measure is appropriate for the activities proposed.
Merit may be demonstrated by the applicant:
a. providing a breakdown of the expected sources and amounts of funding for the
Measure;
b. for each funding source, providing full details of the nature of financial commitments
to the Measure, including the terms and status of any financing agreements; and
c. providing evidence of the financial status and viability of the applicant, such as
annual financial statement or similar audited documents; and
d. justifying why the amount of funding sought is appropriate for the activities
proposed as part of the Measure, taking into account the total cost of the Measure,
and the proportion of funding sought from the Program.
The greater the degree of commitment of funding from other sources for the Measure, the
higher the level of merit of the Measure application under this Merit Criterion. Similarly, the
lower the proportion of funding required from the Program for the Measure, the higher the
merit of the Measure application under this Merit Criterion. For this reason, proposals
seeking 100% of the funding required for a Measure or nearly 100% of the required funding,
are likely to be found to have low merit and not be accepted for funding.
Applicants should, therefore, provide a financial contribution from their own resources to
their proposed Measures. ARENA expects that applicants with higher cost Measures will
make a proportionately larger financial contribution to the Measure, than applicants with
lower cost Measures. Applicants should identify other funding sources for their Measures in
the “Budget and Funding Sources” form to be attached to the proposal.
39
In addition, while financial contributions to Measures from State and Territory governments
are welcome, the Program would not usually fund Measures that are mostly funded by
government sources.
Measure Merit Criterion D – Overall Risk
In assessing a Measure application, ARENA will evaluate the overall risk associated with the
Measure as set out in the Measure application, including, without limitation: compliance,
technical and financial risks.
[Guidelines clause 18.2.d]
ARENA will use all material provided by applicants in the assessment of overall risk of the
Measure not being completed successfully. This risk assessment will also take into account
other risks identified during the assessment of the Measure, including from information
obtained from sources other than the applicant.
To enable assessment of Measure applications against this Merit Criterion, applicants must
provide:
a. A comprehensive risk management plan, in accordance with relevant industry
standards and best practice for this type of Measure. This risk management plan
must identify and assess the full range of technical, financial and other Measure
risks, the treatment strategies proposed for these risks and the residual risk to the
Measure remaining after the proposed treatments have been applied. A template
for a risk management plan is available on the ARENA website at www.arena.gov.au.
b. A compliance table stating any general conditions of the draft Funding Agreement
that the applicant does not accept, accepts in part or does not consider to be
applicable to its Measure. This compliance table must include reasons why the
applicant does not accept, accepts in part or does not consider a general condition
to be applicable to its Measure.
Applicants seeking less than $10,000 of funding for a Measure are not required to provide a
compliance table.
4.4. Preparation and lodgement of Measure applications
Applicants may lodge a Measure application at any time using the Measure Application
Form, which is available on the ARENA website at www.arena.gov.au. Before submitting an
Measure application, however, potential applicants should contact the Emerging
Renewables Program Team on the telephone number or at the email address in section 1.8
of this Information Guide to discuss their proposed Measure.
Measure applications are required to include:
A project plan including a risk management plan.
A completed “Budget and Funding Sources” form, including an indicative budget and
list of funding sources. The “Budget and Funding Sources” form is available on the
ARENA website at www.arena.gov.au.
40
A Knowledge Sharing Plan as per the requirements of section 5.6 of this
Information Guide.
A compliance table identifying the general conditions in the Funding Agreement that
the applicant does not accept, accepts in part or does not consider appropriate to its
Measure. This compliance table must also include reasons why the applicant does
not accept, accepts in part or does not consider appropriate the general conditions it
identifies.
These and any other documents nominated on the Measure Application Form are to be
attached to the Measure application following the instructions on the Measure Application
Form. If a Measure application is received by ARENA and does not include the documents
listed above, it may be returned to the applicant without being assessed.
Applicants may provide attachments to their Measure applications in addition to those
listed above, including a finance plan and an IP management plan. Where additional
documentation is provided by an applicant with its Measure application, this additional
documentation will be considered by ARENA in the assessment of the Measure against the
Eligibility Criteria and Merit Criteria. Such additional documentation may strengthen their
claims for the merit of their Measure against the Merit Criteria, particularly against Measure
Merit Criterion B on the capability of the applicant to undertake and complete the Measure
successfully.
ARENA supports collaboration between companies and researchers in the renewable energy
sector. By ticking the relevant box on the Measure application Form, an applicant may opt
to allow the Measure title and the applicant’s contact details to be published on the ARENA
website at www.arena.gov.au for the purposes of information sharing and possible
collaboration with other applicants and organisations. Note, however, that the publication
of this information is a condition of entering into a Funding Agreement, in accordance with
section 5.6 of this Information Guide and clause 22.5 of the Guidelines.
Applicants should submit their Measure applications electronically according to the
instructions on the Measure Application Form. ARENA will acknowledge the receipt of a
Measure application and send back to the applicant a copy of the received Measure
application, which will state the date received and an application number for the proposal.
Once the applicant receives an application number for their proposal, this must be quoted
in any future correspondence with ARENA on the proposal.
Applicants should then send an original signed copy of the Measure application Form, which
includes the application number, and one copy of each attachment to the mailing or
delivery address specified in section 1.7 of this Information Guide. Where there is a
discrepancy between a hard copy and an electronic copy of a Measure application, the
electronic copy will take precedence. ARENA will provide applicants with a delivery receipt
for their Measure applications, once the original signed copy of the Measure application has
been received.
For all queries about the submission of Measure applications, please contact ARENA by
email at emerging.renewables@arena.gov.au.
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4.5. Consideration of Measure applications
Upon receiving a Measure application, ARENA will assess the Measure against the Eligibility
Criteria in section 4.2 of this Information Guide. If the Measure application is assessed as
not meeting the Eligibility Criteria, it will not be accepted for funding, noting that Measure
Eligibility Criterion 1 is not required to be satisfied until the applicant enters into a Funding
Agreement. Where the Measure application is assessed as meeting the Eligibility Criteria,
ARENA will assess the Measure application against the Merit Criteria detailed in section 4.3
of this Information Guide.
ARENA may seek further information from the applicant that clarifies the Measure
application in relation to any matter requiring clarification arising from the assessment of
the Measure. In addition, ARENA may engage relevant expertise to assist with the
assessment of the Measure application against either the Eligibility Criteria or the
Merit Criteria.
Where the applicant is submitting a revised Measure application that has been previously
assessed against the Eligibility Criteria or Merit Criteria and not accepted for funding, ARENA
may return the revised Measure application to the applicant without assessing the Measure
application if, in the opinion and absolute discretion of ARENA, the revised Measure
application does not take into account the feedback provided on the previous Measure
application.
ARENA will refuse for assessment a Measure application that it has assessed twice
previously and not accepted for funding. If ARENA receives a Measure application that, in
the opinion and absolute discretion of ARENA, is a Measure application that has been
assessed twice by ARENA and not accepted for funding, the Measure application will be
returned to the applicant without being assessed.
Following the assessment of a Measure application, ARENA will write to the applicant to
advise the applicant of the outcome of the assessment of their Measure. If the Measure has
been accepted for funding, the letter will detail the amount of any grant to be offered by
ARENA and any conditions attached to this funding offer. Applicants offered funding will be
required to enter into a Funding Agreement with ARENA, unless the amount of the funding
offer is less than $10,000, in which case the applicant will be required to sign a Letter of
Agreement.
A funding offer may be for less or more than the amount of funding requested by the
applicant and may exclude parts of a Measure submitted by an applicant. The decision of
ARENA on whether or not to offer funding will be final.
If unsuccessful with its proposal, the applicant will be offered the opportunity for feedback
from ARENA on the eligibility and merit of their Measure. Where possible and appropriate,
applicants not awarded funding will be referred by ARENA to alternative support
mechanisms or assistance programs.
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5. FUNDING AGREEMENTS
5.1. Overview
Applicants are required to enter into a Funding Agreement to receive a grant of funding
under the Program. The Funding Agreement is available on the ARENA website at
www.arena.gov.au.
The Funding Agreement may be revised at ARENA’s discretion, in which case the revised
version will be placed on the ARENA website at www.arena.gov.au and an email notification
will be sent to potential applicants who are registered to receive ARENA or Program
updates.
A simplified version of the Funding Agreement, called a Letter of Agreement, is used instead
of the Funding Agreement for Measures where the funding provided by the Program is less
than $10,000.
As part of all proposals, applicants are required to certify that they have read, understood
and agreed to the General Conditions of the Funding Agreement, other than to the extent
indicated in a statement of compliance lodged with their proposal.
5.2. Preconditions for receiving a grant
Applicants offered funding under the Program are required to enter into a legally binding
Funding Agreement with ARENA. All applicants offered funding will have a negotiation
period of 60 days from the date a funding offer is made in which to negotiate and execute
the Funding Agreement with ARENA, and failure to execute within this period may result in
withdrawal of the funding offer.
ARENA may extend the negotiating period at its absolute discretion and applicants may
request that ARENA extend the negotiating period. Requests for an extension of the
negotiation period must be made to ARENA in writing and may be granted at ARENA’s
absolute discretion.
Execution of the Funding Agreement with ARENA on terms acceptable to ARENA is a
condition of all funding offers. Applicants who have received funding offers may not
disclose the funding offer until the Funding Agreement has been executed. Disclosure of the
funding offer by an applicant prior to execution of the Funding Agreement may result in the
funding offer being withdrawn by ARENA.
An applicant with a funding offer must also warrant that they are not subject to a judicial
decision against them relating to employee entitlements and not have paid the claim. If the
applicant is subject to such a judicial decision that is not under appeal, the funding offer
may be withdrawn by ARENA.
Where an applicant receives a funding offer of $20 million or more, the applicant will be
required to develop an Australian Industry Participation Plan as part of the Funding
43
Agreement and to have this Australian Industry Participation Plan approved by the
Department of Innovation, Industry, Science and Research prior to entering into the Funding
Agreement. More information on Australian Industry Participation can be found on the
Department of Innovation, Industry, Science and Research’s website at:
http://www.innovation.gov.au/INDUSTRY/AUSTRALIANINDUSTRYPARTICIPATION/Pages/def
ault.aspx.
Applicants may also be required to revise and agree with ARENA various supporting
documentation as part of the negotiation of the Funding Agreement. Supporting
documentation to be agreed with ARENA may include:
A Knowledge Sharing Plan as per the requirements of section 5.6 of this
Information Guide.
An intellectual property (IP) management plan.
A funding offer may also be subject to additional conditions, such as stage gate criteria, to
manage risks to the Project or Measure identified during the assessment process.
Once a Funding Agreement has been executed, ARENA will make an announcement and
publish details of the grant and the Project or Measure on its website at www.arena.gov.au.
These details will include:
the name of the grant recipient;
the amount of the grant;
the period over which the grant will be paid;
the date of execution of the Funding Agreement;
the name of the Project or Measure;
the location of the Project or Measure;
a brief description of the Project or Measure.
5.3. Terms of the Funding Agreement
The Funding Agreement provides the legal framework for payment of the grant of funding
and for conducting the Project or Measure. The schedules to the Funding Agreement will
reflect the details that applicants provide in their proposal and will set out the activities and
payments agreed for the Project or Measure and establish compliance and reporting
obligations for the grant recipient.
The Funding Agreement will:
be consistent with the Program Guidelines;
specify the amount of the grant and the timing of payments of this funding;
specify that payment of the grant will be conditional upon continued satisfactory
progress against agreed milestones;
44
specify any stage gate criteria applying to the grant and the conditions attached to
these stage gate criteria;
require the recipient to conduct the Project or Measure for which the grant is to be
paid;
require the recipient to keep records relating to the conduct and management of the
Project or Measure;
require the recipient to facilitate and cooperate with any independent evaluation of
the Program;
provide for inspection by ARENA of any premises where the Project or Measure is
undertaken and any records relating to the conduct and management of the Project
or Measure;
require the recipient to report to ARENA on the conduct and management of the
Project or Measure;
require the recipient to report on the implementation of their Australian Industry
Participation Plan, if they are receiving a grant of $20 million or more;
require the recipient to acknowledge ARENA funding for the Project or Measure in
any public statements about the Project or Measure;
require the recipient not to issue any public statements about the Project or
Measure without the approval of ARENA;
provide for variation and termination of the Funding Agreement;
provide for recovery of the grant in certain circumstances;
require the recipient to comply with all applicable Commonwealth, State and
Territory laws; and
include any other necessary matters.
The Funding Agreement may also include provisions:
for the sharing of information with relevant Commonwealth, State or Territory
government agencies;
requiring recipients to provide information on the outcomes and performance of the
Project or Measure for dissemination in Australia or overseas;
requiring the recipient to develop, implement and update an agreed risk
management plan;
requiring the recipient to develop, implement and update an agreed plan for the
management of intellectual property;
requiring the recipient to develop, implement and update an agreed community
consultation plan for the Project or Measure; and
requiring the recipient to develop, implement and update an agreed Knowledge
Sharing Plan.
45
Subject to the amount of funding, the Funding Agreement may require that a recipient must
not engage in building work or contract with a builder who will carry out building work as
defined in section 5 of the Fair Work (Building Industry) Act 2012, if the builder is not
accredited under the Australian Government Building and Construction OHS Accreditation
Scheme (the Scheme) at the time that the contract for building work is executed. Recipients
may further be required to ensure that the builder contracted to undertake any building
work for a Project or Measure is and remains accredited under the Scheme while carrying
out the building work.
In the case of a Project or Measure involving construction activity, the Funding Agreement
will provide that a recipient must comply with the requirements of the Australian
Government's National Code of Practice for the Construction Industry 1997 and the
Australian Government Implementation Guidelines for the National Code of Practice for the
Construction Industry 2012.
Applicants must provide evidence to ARENA of compliance with the above requirements on
request.
5.4. Variations to Funding Agreements
Requests to vary a Funding Agreement must be submitted in writing to ARENA, in
accordance with the requirements of the Funding Agreement.
In assessing a request to vary the Funding Agreement, ARENA will consider:
whether the changed Project or Measure would continue to meet the
Eligibility Criteria detailed in sections 3.2 (for Projects) and 4.2 (for Measures) of this
Information Guide;
the extent to which a changed Project or Measure meets the Merit Criteria detailed
in sections 3.3 (for Projects) and 4.3 (for Measures) of this Information Guide;
whether a change proposed to a Project or Measure significantly changes the
outcome to be expected from the Project or Measure;
whether the changed Project or Measure would continue to be consistent with the
objectives of the Program;
whether a proposed change to a Project or Measure will affect the likelihood of the
Project or Measure meeting the agreed milestones or stage gate criteria; and
whether the change is appropriate in all the circumstances.
ARENA may engage relevant expertise to assist with the assessment of requests to vary
Funding Agreements.
Recipients will be advised in writing of the outcome of their request to vary a Funding
Agreement.
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5.5. Taxation implications
Grant recipients have a Goods and Services Tax (GST) liability associated with the grants
they receive from ARENA where they make a taxable supply in accordance with the A New
Tax System (Goods and Services Tax) Act 1999.
For the Program, eligible expenditure is calculated net of GST (see the Eligible Expenditure
Guidelines at Appendix A to this Information Guide). Where the applicant is expecting to
make a taxable supply and the grant sought would be consideration for that supply, the
applicant should include the GST amount in the “Budget and Funding Sources” form
submitted as part of the applicants’ proposal. ARENA will add GST to the amount of the
grant in the funding offer and to the payment due when making payments of funding to
recipients.
Applicants are strongly advised to seek professional advice on the taxation effects on their
business or organisation of receiving funding from the Program, including whether the grant
will:
be considered income for the purpose of paying income tax;
have additional GST implications for the applicant; or
have any other taxation implications or the applicant.
ARENA does not provide taxation advice.
5.6. Knowledge sharing and publication of Project information
ARENA is seeking improved coordination and collaboration in the renewable energy sector
as an outcome of the Program and sees the broad dissemination of knowledge generated
from Projects and Measures funded by the Program as important to achieving this outcome.
The knowledge sharing required to support improved collaboration in the renewable energy
sector must be balanced with the need to preserve the confidentiality of intellectual
property in Projects and Measures funded by the Program. To provide a basis for balancing
these competing priorities, all applicants are required to prepare a Knowledge Sharing Plan
for their Project or Measure. A proposed Knowledge Sharing Plan is required as part of the
Project funding application or Measure application and a final agreed Knowledge Sharing
Plan will be negotiated between ARENA and an applicant offered funding during the 60 day
negotiation period for the Funding Agreement. Agreement to the Knowledge Sharing Plan
will be a condition attached to the funding offer. A template for Knowledge Sharing Plans is
available on the ARENA website at www.arena.gov.au.
The Knowledge Sharing Plan will identify the information that can be released into the
public arena, and the information that both parties agree should be retained as confidential.
At a general level, the information for public release is expected to include:
The information to be published on the ARENA website about the Project or
Measure specified in section 5.2 of this Information Guide.
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A description of the Project or Measure for public release for use in publications and
announcements by ARENA. This description is expected to provide a clear and
concise summary of the Project or Measure including its objectives, key activities and
timeframes.
Any community consultation documentation required in accordance with the
Funding Agreement.
Reports prepared by the recipient for public release on progress with the Project or
Measure, developments in the renewable energy technology and the outcomes of
the Project, including the operational and financial performance of the renewable
energy technology or implications of the renewable energy technology.
In the event of the failure of a Project or Measure, a report prepared by the recipient
for public release explaining the reasons for the failure of the Project or Measure.
Case studies and similar documentation prepared by the recipient for publication
describing the Project or Measure.
The provision of renewable energy resource data, such as solar irradiation or
geothermal geological data, for inclusion in Commonwealth databases used to
develop renewable energy resource maps or similar documents for publication.
In addition, the Knowledge Sharing Plan will:
Identify information about the Project or Measure and the renewable energy
technology to be made available to ARENA, but to be treated as commercial-in-
confidence by ARENA.
Provide for presentations by the recipient on the progress of the Project or Measure
to relevant industry forums.
Encourage and facilitate the sharing of information about the Project or Measure
with other stakeholders, including with other grant recipients, the energy sector and
other relevant industries.
Allow for escorted on-site visits to the site of a Project for the purpose of explaining
the Project and demonstrating the renewable energy technology to interested
parties, subject to the safety and operational requirements of the recipient.
Applicants should be aware that the Freedom of Information Act 1982 (FOI Act) gives the
public the right to access information collected or in the possession of the Commonwealth,
unless exempted under the relevant provisions of the FOI Act.
5.7. Monitoring and evaluation
Projects and Measures are expected to progress at a rate consistent with the milestones for
the Project or Measure specified in the Funding Agreement. Under the terms of the Funding
Agreement, recipients will be required to submit regular progress reports to demonstrate
the performance of their Project or Measure against the agreed performance milestones
and stage gate criteria specified in the Funding Agreement.
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In accordance with the provisions of the Funding Agreement, ARENA may terminate a
Funding Agreement or suspend in whole or in part further payments of grant funding where
a Project or Measure fails to meet the agreed milestones or stage gate criteria specified in
the Funding Agreement.
ARENA will review progress reports and make an assessment of whether or not a Project or
Measure has satisfied the agreed stage gate criteria and is progressing successfully against
the agreed performance milestones specified in the Funding Agreement. ARENA will
consider a range of factors when reviewing progress reports, including how the recipient is
managing any risks associated with the Project or Measure. ARENA may engage relevant
expertise to assist with the assessment of the progress a recipient is making with its Project
or Measure.
In addition to progress reports, recipients may be required to provide:
financial reports;
a final report on the Project or Measure; and
other ad hoc reports as requested by ARENA from time to time.
More information on reporting requirements will be provided to recipients.
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6. FURTHER PROGRAM INFORMATION
6.1. Confidentiality and disclosure of information
Subject to sections 6.1, 6.2 and 6.3 of this Information Guide, ARENA will keep all proposals
and any other information provided by applicants under the Program confidential prior to
executing a Funding Agreement with the applicant. Once a Funding Agreement is executed
with an applicant, the confidentiality of the applicant’s information will be governed by the
Funding Agreement. Unsuccessful proposals, and any other information provided by
unsuccessful applicants under the Program, will be kept confidential following the
completion of the assessment of their proposals.
Applicants should identify any information that they regard as confidential in their
proposals, with a view to that information being identified in the Funding Agreement as
confidential, if the proposal is accepted by ARENA for funding. Consistent with
Commonwealth policy, information should not be classified as confidential unless there is a
sound reason to maintain the confidentiality of the information. For any information that
an applicant wishes ARENA to treat as confidential, the applicant should identify why the
information should be regarded by ARENA as confidential. ARENA will make an assessment
of the reasons proposed for confidentiality of information provided by applicants and the
appropriate treatment of that information.
6.2. Exceptions to confidentiality
ARENA’s obligation of confidentiality is subject to the ability to disclose information:
to the Minister;
in response to a request by a House or a Committee of the Parliament of the
Commonwealth of Australia;
to the Auditor General, Ombudsman, Information Commissioner or Privacy
Commissioner;
to the Clean Energy Regulator or the Clean Energy Finance Corporation; or
where authorised or required by law to be disclosed.
6.3. Use of applicants’ information
The use and disclosure of information provided to ARENA by applicants, including
information provided as part of any proposal, is regulated by the relevant provisions and
penalties of the Public Service Act 1999, the Public Service Regulations, the Auditor-General
Act 1997, the Criminal Code Act 1995, the Privacy Act 1988 (Privacy Act), the Archives Act
1983, the FOI Act, the Copyright Act 1968, the Crimes Act 1914 and general law relating to
the use and disclosure of information.
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ARENA, including its internal management, agents and advisers, will use the information
provided by applicants for the purposes of discharging their respective functions under the
Program. ARENA may also:
use information received in proposals in any of its legitimate business;
consult with other Commonwealth agencies or bodies, other organisations or
relevant individuals about an applicant’s claims during the application process and
the course of the Program; and
engage third parties to review and assess proposals, in which case, ARENA will
require these third parties to observe appropriate confidentiality.
6.4. Privacy
In administering the Program, ARENA is bound by the provisions of the Privacy Act. Section
14 of the Privacy Act contains the Information Privacy Principles (IPPs) that prescribe the
rules for handling personal information. Persons, bodies and organisations involved in the
Program must abide by the IPPs, the Privacy Act and any other relevant laws when handling
personal information collected for the purposes of the Program.
6.5. Feedback and complaints handling
The Emerging Renewables Program Manager will receive and respond to any concerns or
feedback provided by applicants or recipients. Concerns and feedback should be addressed
to the Program Manager at the address specified in section 1.8 of this Information Guide.
If the Emerging Renewables Program Manager cannot resolve a complaint from an applicant
or recipient within ten business days of receiving the complaint, the Program Manager may
engage an independent complaints and review officer to respond to the complaint.
If an applicant or recipient is dissatisfied with the outcome of ARENA’s internal disputes
resolution process, they may lodge a complaint with the Commonwealth Ombudsman.
There is no fee for making a complaint and the Ombudsman will conduct an independent
investigation of an applicant’s or recipient’s concerns. It should be noted that the
Ombudsman prefers complaints are first considered by internal processes before an
applicant or recipient lodges a formal complaint about a decision by ARENA.
The Ombudsman has offices in all states and territories and can be contacted by
telephoning 1300 362 072 or by writing to the relevant contact address specified on the
Ombudsman’s website at www.ombudsman.gov.au.
6.6. Disclosure of proceedings
All applicants must disclose any litigation, arbitration, mediation, conciliation or proceeding
or any investigations (Proceedings) that to the best of the applicant’s knowledge, after
having made proper enquiry, are taking place, pending or threatened, against them or a
related body corporate, as defined in the Corporations Act 2001 (Corporations Act), where
such Proceedings have the potential to affect either:
the applicant’s capacity to undertake the proposed Project or Measure; or
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the applicant’s reputation.
In circumstances where there are no Proceedings, applicants should make a statement to
that effect in the relevant application form.
If an applicant fails to disclose Proceedings and is subsequently found to have Proceedings
that ARENA considers, in its absolute discretion, should have been disclosed to it, ARENA
may determine that the applicant’s proposal is ineligible for funding.
If a recipient fails to disclose Proceedings and is subsequently found to have Proceedings
that ARENA considers, in its absolute discretion, should have been disclosed to it, ARENA
may terminate the recipient’s Funding Agreement.
6.7. Changes to proposals
ARENA relies upon the information provided by applicants in their proposals. Applicants
must notify ARENA promptly and in writing of any change to a proposed Project or Measure
that could affect the basis upon which the applicant will have access to the necessary skills,
resources or corporate or financial backing to undertake its proposed Project or Measure.
Where such a notification is provided, ARENA will consider the notification as part of the
process of assessment of the proposal. Without limiting the notification requirements of
this section 6.7, where a change to a proposal would alter any of the information or
assurances that the applicant has given in its proposal, the applicant must also, as part of its
notification:
identify specifically all information or assurances that have changed or need to
change as a result of the alteration in the Project or Measure including all relevant
page, section, clause, paragraph, schedule, exhibit or other like references in the
applicant’s proposal that have changed or need to change and any other alterations
to material and information provided to ARENA; and
state in detail the alterations to such information and assurances required by the
change in the proposal.
6.8. Applicant’s responsibilities
Subject to the terms of any Funding Agreement executed with a recipient, all costs and
expenses incurred by an applicant in connection with a proposal under the Program
including, but not limited to:
preparing a proposal;
any subsequent negotiation; and
any other action including any dispute or response in relation to this
Information Guide or at law,
are the sole responsibility of the applicant and are not recoverable from ARENA.
Applicants are responsible for conducting their own examinations of matters relating to
their proposals and applicants will be deemed to have made their own enquiries regarding
participation in the Program. ARENA may choose whether to find any proposal as ineligible
52
which is subject to due diligence or other investigation to be performed by or for the
applicant after the proposal is submitted.
When preparing proposals, applicants should be aware that it is their responsibility to
inform themselves of the responsibilities and risks associated with applying for funding from
the Program.
All applicants should obtain and will be deemed to have obtained their own advice on the
effect of laws and Commonwealth policies, including those referred to in Appendix C of this
Information Guide, on the applicant’s participation in the Program and its conduct of its
proposed Project or Measure in accordance with any resulting Funding Agreement.
6.9. No contract or liability
Nothing in this Information Guide should be construed to give rise to any contractual
obligations or rights, express or implied, by the issue of this Information Guide or the
submission of a proposal. No contract will be created until a Funding Agreement is executed
between ARENA and an applicant.
Any conduct, statement, act or omission (including negligence) of ARENA, whether prior to
or subsequent to the issue of this Information Guide:
is not, and must not be deemed to be, a binding undertaking of any kind by ARENA
on the basis of any promissory estoppel, quantum meruit, quantum valebat, or any
other contractual, quasi-contractual or restitutionary grounds or in negligence; and
does not, and must not be deemed to, give rise to responsibility or liability of ARENA
for any reason.
6.10. ARENA’s rights
Without limiting its rights at law or otherwise, ARENA reserves the right and absolute
discretion at any time to:
cease to proceed with, or suspend, the Program;
amend this Information Guide, including altering the details of the Program, by
giving written notice where possible;
otherwise vary the assessment process;
require additional information or clarification from any applicant or anyone else
associated with a proposal;
shortlist applicants;
negotiate with any one or more applicants and discontinue such negotiations;
call for new proposals;
publish or disclose the names of the recipients of funding under the Program;
allow or not allow a related body corporate, as defined in the Corporations Act, to
take over a proposal in substitution for the original applicant;
53
discontinue assessment of a proposal and reject any proposal; and
perform security, probity and financial investigations and procedures such as ARENA,
in its absolute discretion, may determine are necessary in relation to each applicant,
its partners, associates, subcontractors or related bodies corporate (as defined in the
Corporations Act) or consortium members and their respective employees or
officers.
Any time or date in this Information Guide is for the sole convenience of ARENA. The
establishment of a time or date in this Information Guide does not:
create an obligation on the part of ARENA to take any action; or
create any right in any applicant that any action be taken on the date established.
ARENA may, but is not obliged to, notify affected applicants if ARENA exercises any of its
rights listed in this section 6.10, but will not be obliged to provide any reasons for its
actions.
6.11. Conflicts of interest
In submitting a proposal, the applicant warrants that, to the best of its knowledge after
making diligent enquiries and at the date of submitting the proposal, no conflict of interest
exists or is likely to arise in the application process or in the performance of its obligations
under the Program. Where a conflict of interest arises, or appears likely to arise (whether at
the time of, or after submitting, a proposal), the applicant must:
immediately notify ARENA in writing;
make full disclosure of all relevant information relating to the conflict; and
take such steps as ARENA requires to resolve or otherwise deal with the conflict.
Where an applicant declares any conflicts of interest, it should set out a proposed strategy
for managing and monitoring these conflicts to ensure it does not compromise the success
of the Project or Measure. ARENA will assess the situation and decide an appropriate course
of action, including whether not to accept the proposal for funding due to the level of risk to
the Project or Measure.
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APPENDIX A
EMERGING RENEWABLES PROGRAM ELIGIBLE EXPENDITURE GUIDELINES
The Eligible Expenditure Guidelines detailed in this Appendix A specify what kinds of
expenditure is eligible expenditure for the Emerging Renewables Program (the Program) and
what kinds of expenditure are ineligible for Projects and Measures under the Program.
These Eligible Expenditure Guidelines are recognised in the Funding Agreement for the
Program.
These Eligible Expenditure Guidelines are to be followed:
in the preparation of the “Budget and Funding Sources” form for a Project or
Measure for submission with a proposal for funding under the Program; and
by recipients as part of the regular milestone reporting and annual financial
reporting required of recipients under the Funding Agreement.
Applicants are required to prepare a budget of eligible expenditure for their Project or
Measure for submission with their proposal. Applicants are required to use the “Budget and
Funding Sources” form available on the ARENA website at www.arena.gov.au. Applicants
are required to identify verifiable milestones and to prepare their budgets in terms of
meeting the expenditure required for each milestone. Budgets should be realistic and
feasible in relation to the nature of the Project or Measure. The Project Application Form
and the Measure Application Form require applicants to explain the underlying assumptions
and the basis for calculation of expenditure items. The forms also require applicants to
indicate where quotations and contracts are in place and provide any documentary
evidence to support the expenditure calculations used by the applicant.
If a proposal is accepted for funding and a Funding Agreement executed, ARENA will make
payments upon the achievement of agreed milestones. Payments for each milestone will be
calculated as a proportion of the eligible expenditure expected to be required to achieve the
milestone, subject to review where actual eligible expenditure for the milestone falls
significantly short of the expected eligible expenditure. The proportion of eligible
expenditure to be paid for each milestone will be determined on a case-by-case basis as part
of the process of negotiating the Funding Agreement. In addition, the Funding Agreement
will require recipients to provide financial reports in respect of eligible expenditure on the
Project or Measure.
Where an applicant is in any doubt as to the eligibility of some of the expenditure on their
proposed Project or Measure, the applicant should discuss the matter with ARENA. If an
applicant or recipient considers that a particular item of expenditure that falls outside the
scope of eligible expenditure in these Eligible Expenditure Guidelines should be considered
to be eligible expenditure, the applicant or recipient should request consideration of the
expenditure by ARENA and provide information supporting the eligibility of the expenditure,
either as part of the applicant’s proposal or within a financial report to ARENA. ARENA will
consider the request and make a determination about the eligibility of the expenditure.
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General Principles
The following general principles apply in the consideration of eligible expenditure:
Eligible expenditure is expenditure related directly to the undertaking of the Project
or Measure.
Non-cash and in-kind contributions are not eligible expenditure.
Expenditure is generally not eligible expenditure if it is undertaken prior to the
signing of the Funding Agreement or after the completion date for the Project or
Measure specified in the Funding Agreement.
Opportunity costs are not eligible expenditure. (Opportunity costs are any benefits
or production lost due to the allocation of resources to the Project or Measure ahead
of any other possible activities by the recipient.)
Where resources are used on a Project or Measure and on unrelated activities
elsewhere in the recipient organisation, the cost of those resources should be
apportioned to the Project or Measure on the basis of the proportion of those
resources that were used by the recipient in undertaking the Project or Measure.
Where it is not possible to make such a proportionate allocation, the recipient should
allocate the cost of the resources on a reasonable basis and provide information to
ARENA to support this allocation of the cost of the resources.
Related party transactions must be treated on an at cost basis, without mark-up,
unless the recipient can demonstrate to the satisfaction of ARENA that the
transaction has been calculated on an arms-length basis.
Generally accepted accounting principles are to be followed and it must be possible
to track expenditure relating to the Project or Measure through a recipient’s
accounting system.
Eligible expenditure is calculated net of GST.
Specific Eligibility Provisions
Eligible expenditure includes:
Expenditure on the preparation of contracts entered into for the purposes of
undertaking the activities required for the conduct of the Project or Measure, subject
to the ineligible expenditure constraints below.
Labour expenditure, such as salaries and wages, including reasonable on-costs for
personnel employed directly on the Project or Measure. Labour on-costs include:
worker’s compensation insurance, employer contributions to superannuation,
recreation and sick leave, long service leave accrual and payroll tax.
Administrative expenses, including expenses incurred on communications,
accommodation, computing facilities, travel, recruitment, printing and stationery,
where such expenses can be related directly to the Project or Measure.
Expenditure for plant installed for the Project at the full delivered cost of the plant.
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Expenditure on plant used for the construction of a Project, calculated on the basis
of hire or lease costs or depreciation charges, if owned, and running costs directly
related to the construction of the Project, such as rent, power, fuel and repairs and
maintenance.
Expenditure on legal, audit and accounting costs related directly to the Project or
Measure.
Expenditure related to the raising of funds for the Project or Measure, or the
formation of consortia or joint ventures or other partnership arrangements, where
such activities can be related directly to the Project or Measure.
Expenditure such as relevant licence fees or intellectual property purchase costs,
where the applicant needs to access specific technology to undertake the Project or
Measure.
Expenditure related directly to obtaining government approvals to undertake a
Project.
Ineligible expenditure includes, but is not limited to:
Expenditure related to the general operations and administration of the applicant or
recipient that the applicant or recipient could reasonably be expected to undertake
in the normal course of business.
Expenditure on activities that a local, State, Territory or Commonwealth Government
agency has the responsibility to undertake.
Interest on loans for new and pre-existing capital items used for the Project or
Measure.
Expenditure on the acquisition of land for a Project or Measure.
Sales or promotional activities that do not support directly the successful completion
of the Project or Measure.
Geothermal license retention fees.
Membership fees.
Donations.
Expenditure that does not support directly the successful completion of the Project
or Measure.
Labour
Eligible labour expenditure is the gross amount paid or payable to an employee of the
applicant’s or recipient’s company or organisation. An employee is a person who is paid a
regular salary or wage, out of which regular tax instalment deductions are made. Eligible
salary includes any components of the employee’s total remuneration package that are
itemised on their Pay As You Go (PAYG) Annual Payment Summaries submitted to the
Australian Taxation Office (ATO).
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Recipients must provide evidence to demonstrate the amount of time that an employee
spent on a Project or Measure. Evidence to support eligible expenditure on labour could
include timesheets, job cards or diaries.
Labour costs cannot be claimed based on an estimation of the employee’s worth to the
company, where no cash has changed hands.
Contract Expenditure
Eligible contract expenditure is the cost of any activities to support a Project or Measure
performed for the recipient by another organisation. All such work to be performed on a
Project or Measure must be the subject of a written contract, including a letter or purchase
order, which specifies the nature of the work to be performed for the recipient and the
applicable fees, charges and other costs payable. The written contract must be executed
prior to the commencement of the work undertaken under the contract.
It is not a requirement for contracts to be in place at the time an applicant submits a
proposal to ARENA. However, for major items of contract expenditure, such as purchases of
major items of hardware to be incorporated in the Project or Measure, applicants will be
expected to have some form of documentary evidence, such as written quotes from
suppliers, to substantiate the expenditure included in the budget for the Project or
Measure.
Where the contractor and the applicant or recipient are not at ‘arm's length’, the amount
assessed for work performed will be an amount considered to be a reasonable charge for
that work and contain no unacceptable overheads and no element of ‘in group profit’.
Organisations considered not at ‘arm's length’ include related companies and companies
with common directors or shareholders.
Expenditure prior to execution of the Funding Agreement
Expenditure is generally not eligible, if undertaken prior to the signing of the Funding
Agreement. A recipient, however, may be able to claim some expenditures incurred prior to
execution of a Funding Agreement, with the prior agreement of ARENA and only where such
expenditures are incurred after ARENA has made a funding offer to the applicant for the
Project or Measure. This expenditure and the funding attached to it will be considered by
ARENA on a case by case basis.
Overseas Expenditure
Items of overseas expenditure must be detailed when submitting the project budget in a
proposal. Following execution of a Funding Agreement, expenditure on goods and services
overseas may be subject to approval by ARENA as specified in the Funding Agreement.
Accounting Systems
Recipients are required to have in place suitable accounting systems and to provide to
ARENA assurances that the accounting system used by the recipient allows for the separate
and accurate identification of eligible and ineligible expenditure on the Project or Measure
58
and that a clear audit trail of Program funding and eligible expenditure is available on
request.
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APPENDIX B
PROGRAM TECHNOLOGY PRIORITIES AND STRATEGIC OBJECTIVES
The technology priorities for the Program may change from time to time and when this
occurs, the revised priorities will be published on the ARENA website at www.arena.gov.au
and in a revised version of this Information Guide. ARENA may, at its discretion, consider
technologies not detailed in this Appendix B that it believes may justify funding support
from the Program.
Solar
The Program’s priority for solar is on compelling enabling technologies, including storage,
grid connection technologies and hybrid systems.
Geothermal
The Program’s priorities for geothermal energy are:
to facilitate national coordination;
facilitate resource discovery and proving; and
support pilot demonstration projects to enable learning by doing and information
gathering and dissemination.
Wind
In light of its widespread deployment, ARENA does not propose to provide funding from the
Program on the development of wind energy technologies. ARENA may, however, consider
supporting those enabling technologies that may help to resolve grid connection issues, or
Measures to broaden understanding of wind development issues.
Hydro
In light of its widespread deployment, ARENA does not propose to provide funding from the
Program for hydroelectric technologies.
Wave, Ocean and Tidal energy
The priority of the Program is to monitor developments internationally in ocean
technologies and assist the development of nationally consistent regulatory regimes for
wave, ocean and tidal energy technologies. ARENA will also consider funding pilot-scale
ocean energy technology Projects.
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Bioenergy
The Program’s priorities for energy from biological sources are:
the assessment of sustainable and economic pathways;
pilot projects for second-generation biofuels projects, including algae; and
biopower and bioheat Projects.
The Program does not support waste to energy Projects, unless such Projects can be linked
to other priorities for the Program.
Hybrid systems
The Program’s priority is to support hybrid Projects that facilitate early commercial
deployment of renewable energy technologies.
Enabling technologies and systems
The Program’s priority is to support critical enabling technologies for Australian conditions
and technology concepts with breakthrough potential.
Other technology considerations
The priority for the Program is to realise opportunities and overcome barriers to the
development of renewable energy technologies of particular importance to Australia. Other
priorities for the Program are to support:
support the piloting, demonstration and early-stage commercial deployment of
renewable energy technologies in Australia;
the development of critical enabling technologies and systems; and
renewable energy technologies with the potential to contribute to baseload
electricity generation in Australia.
The Program places a higher priority on maximising the value to Australia of a Project or
Measure above the breadth of coverage of renewable energy technologies and the
technology innovation chain, while encouraging a range of renewable energy technologies in
development.
ARENA’s decisions on funding from the Program for renewable energy technologies will also
consider the extent to which the renewable energy technology involved in a Project or
Measure has originated and continues to be developed within Australia.
Strategic objectives for the Program
The Program supports the synthesis, dissemination and use of knowledge to assist the
development of the renewable energy sector. For this reason, the Program supports
industry to build its skills and capacity to develop renewable energy technologies. The
Program also supports collaboration between governments, industry, the finance sector and
the research community, both nationally and internationally.
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APPENDIX C: APPLICABLE REQUIREMENTS
This Appendix C outlines a range of Commonwealth laws and policies that may affect on the
conduct of Projects or Measures under the Program. Applicants should seek their own
advice on any relevant legislation.
Australian National Audit Office
The Auditor-General has statutory powers to obtain information. The Auditor-GeneraI Act
1997 (Cth) provides the Auditor-General or an authorised person with a right to have at all
reasonable times, access to information, documents and records.
In addition to the Auditor-General’s statutory powers and in recognition of the need for the
Auditor-General’s functions to be conducted in an efficient and co-operative manner, a
recipient with a Funding Agreement will be required to provide to the Auditor-General or a
delegate of the Auditor-General, access to the recipient’s premises, in respect of any inquiry
concerning the Project or Measure for which the recipient is receiving or has received
funding and to otherwise facilitate monitoring of compliance with the Funding Agreement.
Such access will apply for the term of the Funding Agreement and for a period of seven
years after the date of termination or expiry of the Funding Agreement.
Anti-terrorism
ARENA will not enter into a Funding Agreement with a person or organisation on the list of
persons and entities designated as terrorists. Part 4 of the Charter of United Nations Act
1945 (Cth) and the Charter of United Nations (Dealing with Assets) Regulations 2008 (Cth)
require any person who holds assets or funds belonging to a person or organisation on the
list of persons and entities designated as terrorists to immediately freeze those assets. It is
an offence to make any funds or assets available to a person or organisation on the list. The
list and more information on these requirements are available at
http://www.dfat.gov.au/icat/UNSC_financial_sanctions.html.
Recipients will be required to comply with all applicable laws dealing with the supply or
export of goods, services or information to foreign nationals or institutions including under
the Customs Act 1901 (Cth) and the Weapons of Mass Destruction (Prevention of
Proliferation) Act 1995 (Cth).
Anti-money laundering
Recipients will be required to comply with any obligations applicable to them contained in
the legislation arising from the Anti-Money Laundering and Counter-Terrorism Financing Act
2006 (Cth).
Equal opportunity
The Commonwealth has a policy of not entering into agreements with or providing
discretionary grant or loan funds to organisations that do not comply with their obligations,
62
if any, under the Equal Opportunity for Women in the Workplace Act 1999 (Cth). To be
considered for funding under the Program, the applicant must not be named by the Equal
Opportunity for Women in the Workplace Agency as not complying with the EOWW Act.
Archiving
Applicants and recipients should be familiar with the requirements of record keeping in an
outsourced environment, particularly the National Archives publication “Records Issues for
Outsourcing”. Copies of this publication can be downloaded from:
http://www.naa.gov.au/Images/GDA25_tcm2-1129.pdf.
Environmental regulation
Recipients will be required under the Funding Agreement to comply with the National Model
Regulations for the Control of Workplace Hazardous Substances [NOHSC:1005(1994)] and
National Code of Practice for the Control of Workplace Substances [NOHSC:2007(2004)].
Copies of both documents can be obtained from the Australian Safety and Compensation
Council (ASCC) website at www.ascc.gov.au.
National Code of Practice for the Construction Industry
The guidelines for the Program require recipients to comply with the National Code of
Practice for the Construction Industry and the Australian Government Implementation
Guidelines for the national Code of Practice for the Construction Industry, August 2009
(Implementation Guidelines). Copies of the National Code of Practice for the Construction
Industry and the Implementation Guidelines are available on the website of the Department
of Education, Employment and Workplace Relations at: http://www.deewr.gov.au/Workpla
ceRelations/Policies/BuildingandConstruction/Pages/Publications.aspx.
The National Code of Practice for the Construction Industry and the Implementation
Guidelines will apply to a Project where:
the Project involves construction activity; and
the Commonwealth contribution to the project is:
o at least $5 million and represents at least 50% of the total construction
project value; or
o $10 million or more, irrespective of the proportion of Commonwealth
funding.
Where the National Code of Practice for the Construction Industry and the Implementation
Guidelines apply to a Project, they will also apply to all construction building work
undertaken by the recipient, its related entities or subcontractors thereafter as defined in
the Implementation Guidelines, including work on all new privately funded construction
projects in Australia. For further information on the definition of privately funded
construction projects, see section 3.4 of the Implementation Guidelines.
Notwithstanding any other provisions of this Information Guide, the recipient must consent
to the disclosure of information concerning compliance with the National Code of Practice
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for the Construction Industry and the Implementation Guidelines, including details of
whether or not a sanction has been imposed (see section 8.2 of the Implementation
Guidelines). This consent extends to disclosure by the Commonwealth, its agencies and
departments, and disclosure to others for the purposes of facilitating compliance with the
National Code of Practice for the Construction Industry and the Implementation Guidelines
and the exercise of their statutory and portfolio responsibilities. Recipients should ensure
that their related entities, proposed subcontractors and consultants are also aware of, and
agree to comply with, these rights of use and disclosure.
To the extent that its Project involves construction activity, a recipient is required under the
Funding Agreement to:
comply with the National Code of Practice for the Construction Industry and the
Implementation Guidelines and ensure that its subcontractors do so; and
not appoint a related entity, subcontractor or consultant in relation to the Project to
undertake construction activity where the appointment would breach a sanction
imposed by the Commonwealth under the National Code of Practice for the
Construction Industry.
Where construction activity is involved as part of a Project, the applicant should indicate in
its proposal:
whether the applicant or a related entity of the applicant has ever been subject to a
sanction imposed under the National Code of Practice for the Construction Industry
or the Implementation Guidelines;
whether the applicant has had a judicial decision against them (not including a
decisions under appeal) relating to employee entitlements and has not paid the
claim;
whether the applicant has had any adverse court, tribunal, industrial relations
commission or Fair Work Australia finding, order or penalty awarded against them in
the last two years (and if so provide details);
how the applicant and its related entities have complied with the National Code of
Practice for the Construction Industry and the Implementation Guidelines in the past
(if the applicant has undertaken Australian Government funded construction work in
the past);
how the applicant intends to comply with the National Code of Practice for the
Construction Industry and the Implementation Guidelines in undertaking the Project;
and
where the applicant proposes to subcontract an element of the Project involving
construction activity, either:
o the information detailed in the points above in relation to each
subcontractor; or
o how the applicant intends to ensure each subcontractor complies with the
National Code of Practice for the Construction Industry and the
Implementation Guidelines.
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Where an applicant has been in breach of the National Code of Practice for the Construction
Industry or the Implementation Guidelines such that a sanction has been imposed by the
Commonwealth, ARENA may, at its discretion, decide not to consider a proposal from the
applicant.
Occupational health and safety
ARENA has obligations under the Occupational Health and Safety Act 1991 (Cth) (OHS Act) in
relation to the maintenance of a safe workplace and safe systems of work. Recipients will
be required to act in such a way as not by action or omission to place ARENA in breach of its
obligations under the OHS Act. Recipients also should be aware that they may have their
own obligations under the OHS Act.
OHS Accreditation Scheme
Subject to the exclusions specified in the Regulations, ARENA is required by law to ensure
that it applies the Australian Government Building and Construction Occupational Health
and Safety Accreditation Scheme (OHS Accreditation Scheme) to building work funded
under the Program. The OHS Accreditation Scheme is established by the Building and
Construction Industry Improvement Act 2005 (Cth) (Act) and the Building and Construction
Industry Improvement (Accreditation Scheme) Regulations 2005 (Cth) (Regulations). Where
applicable, recipients will be required to administer any funding they receive under the
Program in accordance with the requirements of the OHS Accreditation Scheme.
The OHS Accreditation Scheme will apply to a Project where:
the Project involves building work;
the building work is carried out under a contract with a value of greater than
$3 million; and
the Commonwealth contribution to the Project is:
o at least $5 million and represents at least 50% of the total construction
project value; or
o $10 million or more, irrespective of the proportion of Commonwealth
funding.
Where the above conditions are satisfied, all of the recipient’s head contracts for building
work for the project that are valued at $3 million or more must:
be notified to the Office of the Federal Safety Commissioner at the earliest possible
opportunity (that is, when approaching the market); and
contain a requirement that the builder:
o is accredited under the OHS Accreditation Scheme;
o maintains OHS Accreditation Scheme accreditation for the life of the
contract; and
o must comply with all conditions of the OHS Accreditation Scheme
accreditation.
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Under the OHS Accreditation Scheme, “Building work” has the meaning given in section 5 of
the Building and Construction Industry Improvement Act. Section 35(8) of the Act provides
that a “builder”, in relation to building work, means a person who carries out any of the
building work.
More information on the OHS Accreditation Scheme is available on the website of the Office
of the Federal Safety Commissioner at http://www.fsc.gov.au/Pages/default.aspx or by
telephoning the Office of the Federal Safety Commissioner on 1800 652 500.
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APPENDIX D: GLOSSARY OF KEY TERMS AND PHRASES
Interpretations
A reference in this Information Guide to an Act or other instrument is a reference to that Act
or other instrument as amended or replaced from time to time.
References to include, includes, including and in particular do not limit the generality of the
words which precede them or to which they refer.
A reference to a person includes an individual, firm, a body corporate, a trust or other
structure.
The singular includes the plural and vice versa, and a gender includes other genders.
Terms and phrases
Unless the contrary intention appears, italicised terms used in this Information Guide have
the following meanings.
ARENA means the Australian Renewable Energy Agency, as established by section 7 of the
ARENA Act.
ARENA Act means the Australian Renewable Energy Agency Act 2011 (Cth).
ARENA Board means the Board of ARENA.
ARENA staff means the staff necessary to assist ARENA, who are engaged under the Public
Service Act 1999 (Cth), employed in the Department and made available by the Secretary of
the Department to ARENA.
applicant means any entity, or the lead proponent of a consortium, that has submitted a
proposal for funding under the Program.
Board member means a member of the ARENA Board.
CEO means the Chief Executive Officer of ARENA.
conflict of interest means a situation where a person makes a decision or exercises a power
in a way that may be, or may be perceived to be, influenced by either material personal
interests (financial or non-financial) or material personal associations.
Consultant means a consultant engaged by ARENA pursuant to section 63 of the ARENA Act
to provide technical and specialist advisory services to assist ARENA in the performance of
its functions.
Department means the Department of Resources, Energy and Tourism.
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Eligibility Criteria means:
a. in the case of Projects, the criteria listed in section 3.2 of this Information Guide; and
b. in the case of Measures, the criteria listed in section 4.2 of this Information Guide.
eligible expenditure means expenditure of the kind set out in the Emerging Renewables
Program Eligible Expenditure Guide at Appendix B to this Information Guide.
EOI or expression of interest means a preliminary submission under Phase 1, the
pre-qualification phase, of the application and assessment process for Projects, which is
submitted by an applicant and received by ARENA. An EOI is not a Project funding
application.
EOI Form means the form to be submitted by applicants as part of an EOI submission.
funding means monies agreed to be payable by ARENA to the recipient, whether by way of
grant or other means.
Funding Agreement means the agreement between a recipient and ARENA for funding
under the Program, as amended from time to time in accordance with the guidelines for the
Program. The Funding Agreement consists of two parts: the General Conditions and the
Schedule.
General Conditions means the predetermined standard contract approved by
ARENA.
Schedule means the specific information and conditions that are consistent with the
funding offer.
funding offer means the letter that identifies the amount of funding ARENA is willing to
provide, the conditions under which the funding is offered, and the specific entity and the
Project or Measure details that have been approved. The funding offer has an expiry date of
60 days, unless extended by ARENA at its absolute discretion.
grant means an amount of funding awarded for a particular Project or Measure in return for
the completion of specified milestones. A grant is not to be confused with a gift or a loan.
In the case of the Program, the grant is the amount identified in the Funding Agreement.
Grants are subject to normal taxation treatment as income and no special taxation
arrangements apply to grants from the Program. All potential applicants are strongly
advised to seek independent taxation advice on the tax implications of receiving a grant
under the Program.
guidelines means the Emerging Renewables Program Administrative Guidelines.
Information Guide means this document issued by ARENA to provide applicants and
recipients with more information about the Program.
Measure means
a. renewable energy industry capacity building activity that involves research and
development to build the renewable energy industry in Australia including, but not
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limited to, modelling, feasibility studies, methodology development, data collection
and knowledge dissemination;
b. renewable energy industry development activity that provides strategic and
commercial development advice to start-up Australian companies in order to
prepare management teams for further investment in renewable energy including,
but not limited to, skills development, training, course materials, collaboration
activities, best practice guidelines and standards development; or
c. a preparatory activity for a Project.
Measure application means the submission, including, but not limited to a completed
Measure Application Form, for funding of a Measure under the Program, which is submitted
by an applicant and received by ARENA.
Measure Application Form means the Measures Emerging Renewables Program Application
Form.
Merit Criteria means:
a. in the case of Projects, the criteria listed in section 3.3 of this Information Guide; and
b. in the case of Measures, the criteria listed in section 4.3 of this Information Guide.
Minister means the Minister for Resources and Energy.
Phase 1 means the pre-qualification phase of the application and assessment of proposals
for Projects under the Program, which is detailed in sections 3.4 and 3.5 of this Information
Guide.
Phase 2 means the funding consideration phase of the application and assessment of
proposals for Projects under the Program, which is detailed in sections 3.8 and 3.9 of this
Information Guide.
Program means the Emerging Renewables Program, which is an eligibility and merit-based
program to support organisations undertaking the development of renewable energy
technologies and other activities to support the development and deployment of renewable
energy technologies.
Program funds means the funding made available by ARENA for the Program.
Project means a project to develop a renewable energy technology along the technology
innovation chain.
Project Application Form means a Projects Emerging Renewables Program Application Form
to be submitted by applicants as part of a Project funding application.
Project funding application means the final submission, including but not limited to a
completed Project Application Form, which is submitted for funding under Phase 2 of the
application and assessment of proposals for Projects under the Program.
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proposal means the EOI or the Project funding application submitted by an applicant for a
Project for funding under the Program or the Measure application submitted by an
applicant for a Measure for funding under the Program.
recipient means an entity that has entered into a Funding Agreement with ARENA for
funding of a Project or Measure.
renewable energy technology is a technology that uses or enables the use of one or more
renewable energy sources. This may include technologies that:
a. generate or supply energy, including hybrid systems;
b. provide a direct energy input for other uses, such as transport, heating, cooling,
cogeneration and trigeneration; or
c. are otherwise associated with, or used in conjunction with, renewable energy
technologies;
where:
d. renewable energy sources are those that are generated from natural resources that
can be constantly replenished;
e. hybrid systems integrate renewable energy technologies with other energy
production systems;
f. enabling technologies and systems are those that enable renewable energy
technologies to function more effectively and may include resource assessments,
new materials, nanotechnology, integration systems, information and
communication technologies, forecasting systems, control systems, fuel supply
logistics, energy storage or smart grids;
g. cogeneration technologies involve the combined production of electricity and useful
heat from the same process (also known as combined heat and power); and
h. trigeneration technologies involve the simultaneous production of three forms of
energy (electricity, useful heat and cooling) from the same process (also known as
combined heat, cooling and power).
technology innovation chain means the process of development, demonstration and early-
stage deployment of new technologies, as follows:
a. development proposals are those that synthesise new knowledge into an innovative
new idea and subsequent development to an end use concept which, if successful,
could have widespread commercial potential. This includes proof-of-concept
activities.
b. demonstration proposals are those that aim to test and show the technology is
viable in real world applications with market potential. This includes pilot-scale and
large-scale projects to demonstrate the technical feasibility, reliability and durability
of a new technology.
c. early-stage deployment proposals are those that expand the use of the technology,
including through supported commercial methods, leading to the concept or product
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becoming widely available and adopted in the broader market. This includes early-
stage deployment projects.
The technology innovation chain does not include early stage research and development
activities or commercial scale deployment.
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