CEFC hits record $837m of clean energy investments

The Clean Energy Finance Corporation (CEFC) committed a record $837 million to new investments in the Australian clean energy sector in the 2015-16 financial year, contributing to projects with a total value of $2.5 billion.

The CEFC’s investment commitments since its inception in 2013 have now reached $2.3 billion, contributing to projects with a total value of $5.7 billion.

Across the economy, CEFC CEO Oliver Yates said the corporation is working to accelerate investment in renewable energy, increase energy efficiency in the manufacturing and transport sectors, and improve energy standards in the built environment.

In its third year of operation, the CEFC achieved a 73 per cent year-on-year increase in the value of new investment commitments, including a substantial increase in the number of indirect investments and new capital products, demonstrating the breadth of the CEFC’s co-financing models.

“We are actively targeting areas of economic activity where clean energy investment can improve energy efficiency, cut carbon emissions as well as lower operating costs,” Mr Yates said.

“The CEFC’s involvement in projects continues to attract additional private sector investment, which is critical if Australia is to achieve its emissions reduction commitments and meet the Renewable Energy Target. We are pleased with the level of private sector interest we are seeing in clean energy, but this will need to further increase in the years ahead.

“Australia still faces a considerable investment challenge to deliver the clean energy solutions necessary to reduce emissions.”

The CEFC’s investment commitments in 2015-16 targeted three strategic priority areas:

Strategic priority areas

2015-16

2014-15

Since inception

Cleaner power solutions, including wind, large and small scale solar, grid and storage, waste, bioenergy and agriculture sectors.

$110m

$115m

$840m

Better cities and built environment, including infrastructure and transport; property, manufacturing and industry; governments and not for profits, including universities and social housing.

$217m

$125m

$661m

New sources of capital, with the development of investments in climate bonds, equity funds and working with co-financiers to increase investment in clean energy projects.

$510m

$244m

$754m

TOTAL

$837m

$484m

$2255m

The CEFC’s investment commitments by technology are:

Technologies

2015-16

2014-15

Since inception

Renewable energy

$379m

$189m

$1,056m

Energy efficiency

$458m

$295m

$1,124m

Low emissions technologies

0

$75m

TOTAL

$837m

$484m

$2,255m

New sources of capital

The CEFC’s commitment to cleaner power solutions and a better built environment were also facilitated by the development of the following new sources of capital:

  • $100 million cornerstone equity commitment to the new Australian Bioenergy Fund, to support investment in a broad range of projects seeking to produce energy from agricultural, council, and forestry waste streams.
  • $90 million cornerstone investment in the $500 million Westpac Climate Bond, to finance a $1 billion Australian-based clean energy portfolio, including energy efficient commercial buildings.
  • $200 million to the Westpac Energy Efficient Financing Program to support small businesses across Australia that want to invest in solar, energy efficient technologies and low emissions vehicles.
  • $20 million in a FlexiGroup green bond certified by the global Climate Bonds Initiative and secured against a portfolio of solar PV and renewable energy assets. This was the first certified green bond transaction of its type in the Australian market.