CEFC Invests in 2% of Australian Ocean Energy

Australian Clean Energy Finance Corporation (CEFC) committed new investments of close to A$500m in the past 12 months, taking its total commitments to invest over the two years since inception to more than A$1.4 billion.

These projects and programs have catalysed a further A$2.2 billion in other investment.

During its second full year of operation, the CEFC made investments which are helping drive the commercial deployment of new technologies and the development of innovative business models.

New commitments by technology in 2014-15 included A$246m in renewables, with a further A$238m in energy efficiency projects. An investment of A$15m in remote solar and storage was finalised just after the end of the financial year.

During 2014-15, the CEFC widened market opportunities and launched new financing options for small and mid-sized business through co-financing programs with major banks and other financiers, as well as energy companies.

The CEFC has now made over 55 direct investments, with a further 34 projects financed under co-financing programs. The current CEFC portfolio investment comprises 33% solar, wind 21%, waste-to-energy/bioenergy 7%, ocean 2%, energy efficiency 31% and other low emissions technologies 6%.

At the beginning of this year, CEFC granted a $20 million loan facility which partly funds Carnegie Wave EWnergy’s CETO 6 Project off Garden Island, Western Australia.

Every loan was made at a rate above the yield on the 5-year Australian Government bond rate prevailing at the time of investment. When built and operational, the projects in which the CEFC has invested are expected to abate 4.2 million tonnes CO2-e annually, with a positive net benefit to the taxpayer.

CEFC CEO Oliver Yates said: “The revised Renewable Energy Target has opened the way for continued development of renewable energy in Australia and should provide investors with greater confidence in the further development and diversification of Australia’s clean energy sector, including in the areas of innovative renewable technologies, large-scale solar and energy efficiency. A new post-2020 RET target will be critical to overcoming the long term financing challenges for the sector.” 

Image: CWE (Illustration)