A national agency created to boost the supply of renewable energy in Australia will be abolished.
The decision to axe the Australian Renewable Energy Agency was confirmed in Tuesday's federal budget.
It will save the budget $1.3 billion over five years.
The agency was created to fund renewable projects and drive research and investment, particularly into new technologies.
It brought several clean energy programs under one roof when it was created by legislation in November 2011.
It enjoyed bipartisan support at the time, and was allocated more than $3 billion once its operations kicked off in July 2012.
The Abbott government later announced it would reduce ARENA's funding to $2.5 billion.
Over the next eight years $1 billion will be retained to support "priority projects" already underway.
ARENA can't be abolished without legislation passing parliament, and it's likely Labor and the Australian Greens will oppose any efforts to repeal the Gillard-era agency.
The government also announced $460 million in savings over three years by trimming the Carbon Capture and Storage program.
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