THE renewable energy sector is calling for an extra $4 billion of commonwealth funding in the May budget to foster growth in geothermal and wave and tidal power ventures.

Development of wave and tidal power is arguably less advanced, although the listed Carnegie Wave Energy is developing a project in Perth and there is interest in harnessing tidal resources in Port Hedland and wave resources in Western Australia, South Australia and Tasmania.

The Clean Energy Council commissioned Ernst & Young to develop recommendations for tax concessions for renewable energy and clean technology companies, which it has submitted to the Henry review of Australia’s tax system.

The report proposes a range of tax concessions, including accelerated depreciation for new clean-tech capital investment, tax deductions for exploration and prospecting, and tax credits for research and development.

The report also calls for capital gains tax concessions and exemptions as well as concessional treatment for dividends received for investment in clean technology.

Mr Warren said that government assistance for research and development was important as it was very hard for companies to raise the funds and protect their intellectual property because companies usually had to report any breakthroughs to keep the supply of funds

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