Advancing Renewables Program (ARP)

Purpose and Program Overview

The Advancing Renewables Program (ARP) is an Australian Renewable Energy Agency (ARENA) initiative aimed at accelerating the development, demonstration, and pre-commercial deployment of renewable energy technologies across Australia. The program’s key objectives are to reduce the cost of renewable energy, increase its value and supply, improve technology and commercial readiness, remove barriers to wider uptake, and build skills and capacity in the renewable energy sector. By funding innovative projects, ARP supports Australia’s transition to a low-emission energy future and contributes to national climate goals.

The program facilitates funding for a broad range of renewable energy technologies and projects that demonstrate potential for commercial and environmental benefits. ARP plays a vital role in supporting businesses and research organisations to advance promising renewable technologies from early development stages through to market adoption, thereby fostering innovation, job creation, and sustainable energy solutions.

While the total funding pool is not explicitly capped, funding is drawn from ARENA’s uncommitted funds and allocated to high-merit proposals within the program’s investment focus areas. Applications are assessed through a two-stage process, ensuring projects align with ARENA’s objectives and demonstrate sound financial viability and impact potential.

Key Grant Details

• Grant amount: Funding varies by project scope; no fixed minimum or maximum is specified in the guidelines
• Application open: Ongoing, with applications accepted continuously until funds are fully committed or program changes
• Application close: No fixed close date; rolling submissions processed periodically
• Eligible industries/business types: Australian incorporated entities, Commonwealth or State government entities, local governments, Aboriginal and Torres Strait Islander organisations, and consortia involved in renewable energy innovation projects
• Co-contributions: Applicants must demonstrate financial viability, including co-funding commitments, typically expecting a 1:1 ratio, including cash and in-kind contributions
• Location applicability: Australia-wide

Priority Sectors

The program supports a broad range of renewable energy sectors, including but not limited to:

• Ultra-low-cost solar technologies
• Hydrogen production, storage, and use (clean hydrogen)
• Renewable energy integration for electricity system optimisation
• Low emissions metals processing
• Decarbonisation of transport and other industrial sectors

Projects that advance renewable energy technologies at various Technology Readiness Levels (TRL 3 to 7) and contribute to ARENA’s strategic investment priorities are especially encouraged.

Funding Scope

• Funding ranges: Variable, tailored to project design and milestones; no fixed limits stated
• Categories or streams: The program funds development, demonstration, pre-commercial deployment, technology scale-up, and commercial readiness exercises
• Project timeline: Usually projects of up to several years, with clearly defined milestones and phased funding tied to achievement

Grant Amount in Total

• Funding allocated depends on ARENA’s available uncommitted funds; no single total pool is publicly specified.

Eligibility Criteria

• Australian Business Number (ABN) holder
• Australian incorporated entity or eligible government/statutory body
• Must meet eligibility for applicants and projects as defined by ARENA, including intellectual property rights and compliance requirements
• Projects must contribute directly to renewable energy technology advancement or enabling technologies
• Must provide evidence of financial capacity and co-funding commitment

Eligible Activities and Expenses

• Research, development, demonstration, and pre-commercial deployment of renewable energy technologies
• Technology validation, system integration, and scalability testing
• Capital equipment purchase and technology development costs
• Contracting specialist expertise, consultancy, and technical services
• Regulatory pathway activities and approvals related to project deployment
• Knowledge sharing and engagement as required by ARENA

Assessment Process

• Competitive, two-stage process: Expression of Interest (EOI) followed by Full Application
• Evaluation based on merit criteria, including:
  • Contribution to program outcomes such as cost reduction, improved value, and technology readiness
  • Applicant capability and experience
  • Project design, risk management, and compliance
  • Financial viability and robustness of co-funding plans
  • Commitment to knowledge sharing and collaboration

Recent Program Updates of Advancing Renewables Program

• Updated program guidelines effective November 2024
• The program continues as an open rolling program, accepting applications until funds are fully allocated
• Focus on climate performance improvements and portfolio approach to funding decisions
• Strengthened requirements for knowledge sharing and collaboration to enhance sector-wide benefits

Application Tips

• Thoroughly review eligibility requirements and ARENA’s guidelines before applying
• Engage early with ARENA to discuss project alignment and funding potential
• Prepare detailed and realistic project plans with clear milestones and budgets
• Demonstrate strong co-funding arrangements and financial management capacity
• Emphasise how the project supports ARENA’s strategic objectives and benefits the Australian renewable energy sector
• Submit Expressions of Interest ahead of the desired funding consideration dates

Where to Get Help

Consider consulting with a professional grant specialist like Pattens Group. We offer initial assessments to review your business’s eligibility and evaluate how well your project aligns with the grant’s objectives. You can also visit ARENA’s website for application templates, guidelines, and further guidance.