Industry Minister Ian Macfarlane said a re-elected Coalition Government would provide $5 million to Melbourne-based Solar Systems for the first stage of its solar-hydrogen power project.

Solar Systems’ technology uses hydrogen to store energy generated by solar power during the day, allowing for that energy to be released later as required.

Using this technology, Solar Systems is constructing a zero-emission 154-megawatt solar concentrator power station near Mildura.

It would be the largest and most efficient solar concentrator power station in the world, and is scheduled for completion by 2013 at a cost of $420 million.

Macfarlane noted that a key limitation of solar power to date has been its inability to provide reliable and continuous electricity.

“Making solar power a 24-7 energy source that can provide energy at night or on cloudy days would be a huge step forward for the technology,” Macfarlane said.

“Solving this problem would see solar power become an even more important part of Australia’s low emission energy future.”

Environment Minister Malcolm Turnbull said the grant was part of $1 billion the Coalition had already committed towards improving solar technology and the use of solar energy.

“This latest project follows its successful development of a new generation of solar technology, which has the potential to generate electricity more efficiently than conventional photovoltaic cells,” he said.

Solar Systems is also a leader in the local manufacture of photovoltaic cells and research and development into solar technology.

The company’s $22 million manufacturing facility in Melbourne will employ 150 people and produce 300MW of photovoltaic modules, making it one of the largest facilities in the world. It is also building a $10 million research and development centre near Bendigo.

In comparison, Labor has committed more than $700 million towards energy-efficiency programs for businesses and households.