The Australian Government is establishing a $1 billion Clean Energy Innovation Fund to support the commercialisation of emerging technologies.

The $1 billion Clean Energy Innovation Fund will be jointly managed by the Clean Energy Finance Corporation (CEFC) and the Australian Renewable Energy Agency (ARENA), drawing on their complementary experience and expertise.

Investments will have the primary purpose of earning income or a profitable return and may be in the form of debt products or equity investments or a combination of both.

Clean energy technologies include renewable energy, energy efficiency and low emissions technologies. The fund will target projects such as large-scale solar with storage, off-shore energy, biofuels and smart grids.

The refocused agencies will work together to provide capital investment in Australian businesses and emerging clean energy technologies.

The Clean Energy Innovation Fund will be established from within the CEFC's $10 billion allocation. This fund will make available $100 million a year for ten years.

The changes will align with the Emissions Reduction Fund, the Renewable Energy Target and the National Energy Productivity Plan.

See the Department of Environment for more information, including a fact sheet on the fund.