Australia’s CEFC backs large-scale solar with AU$250 million finance

Facebook
Twitter
LinkedIn
Reddit
Email

Australia’s Clean Energy Finance Corporation (CEFC), the government body aiming to mobilise capital investment in the country’s renewable energy sector, has introduced an AU$250 million (US$175 million) financing programme for the development of large-scale solar.

The programme, which will be the largest lending commitment for utility-scale solar ever in Australia, will be directed at accelerating the development of >10MW projects with loan requirements of AU$15 million or more.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

CEFC chief investment officer Ted Dow said: “The CEFC finance will be available for projects which have power purchase agreements, as well as those proposing to take some merchant risk.”

Dow added that financing will be available over a longer term at a fixed rate in order to give extra certainty and confidence to developers and producers in the supply chain for the still-developing, large-scale sector in Australia.

Dow claimed there is a funding gap in the sector, therefore, CEFC also aims to encourage other sources of finance to back large-scale solar through co-investment and debt equity.

The body is also focusing on support for projects within other large-scale renewable energy schemes, including the ACT’s 50MW Next Generation Solar initiative, the Queensland Government’s 40MW solar auction, and Ergon Energy’s AU$150 million renewable energy programme.

CEFC has already made significant investments in large-scale projects including the 56MW Moree Solar Farm in New South Wales (AU$46 million), Australia’s largest solar and battery storage project to date at Sandfire Resources’ DeGrussa copper mine in Western Australia (AU$15 million), and remote solar projects in the Northern Territory (AU$17 million).

The new financing programme also complements an AU$100 million funding programme from the Australian Renewable Energy Agency (ARENA), which is currently developing a competitive round for 200MW of large-scale solar PV, under the Advancing Renewables Programme.

An ARENA spokesman told PV Tech that it is expected that the expressions of interest for the round will open in early to mid September. The metrics and criteria for the round have not yet been finalised.

Dow said: “Projects seeking finance from the CEFC and funding from ARENA will benefit from our organisations working together during each stage of the application process, to minimise transaction and due diligence time and costs.”

“The installation of large-scale solar has lagged behind residential solar, which is estimated to reach about 5,000MW of installed capacity this year. While the costs of large-scale solar PV are decreasing, this financing boost will help Australian projects move down the cost curve, in line with international trends.”

Read Next

December 5, 2024
TotalEnergies has sold a 50% stake in a 2GW US solar and energy storage portfolio and acquired German renewable energy developer VSB Group.
Premium
December 5, 2024
Magdalena Hilgner of PLAY explains that projects that deliver power reliably and at a fair price will always be attractive for offtakers.
December 5, 2024
Australian energy company APA Group has completed the construction of a 45MW solar-plus-storage project in the Pilbara region of Western Australia.
December 4, 2024
Solar will form the cornerstone of Indonesia’s renewable power sector, according to forecasts made by think tank Ember Climate.
Premium
December 4, 2024
PV Talk: With most US clean energy projects located in Republican states, and their economic benefits flowing to the constituents of such states, Carl Fleming, partner at law firm McDermott Will & Emery, says the IRA tax credits for renewables should stay in place despite next year's regime change.
December 4, 2024
The contracts are spread across 23 large-scale renewables projects, 19 of which are solar PV projects with a combined 1.5GW capacity.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
December 12, 2024
9am GMT / 10am CET
Solar Media Events
February 4, 2025
London, UK
Solar Media Events
February 17, 2025
London, UK
Solar Media Events
February 26, 2025
Seattle, USA