The federal government’s $2 billion (USD 1.2 billion) allocation to its Sydney-headquartered green bank Clean Energy Finance Corporation (CEFC) will boost investment commitments in renewable energy generation and storage, electric vehicles (EVs), property, infrastructure and natural capital.
CEFC Chief Executive Officer Ian Learmonth said the capital allocation demonstrates the government’s support of CEFC’s work as the country’s ‘green bank’.
“CEFC investment commitments include capital for our asset finance programs, which have already provided discounted finance to households, business and farmers across close to 80,000 smaller-scale clean energy investments,” Learmonth said.
“We expect this additional capital to be particularly important in increasing investment in much-needed renewable energy generation and energy storage projects, which are central to delivering on our national emissions ambitions.”
Australian Prime Minister Anthony Albanese said the boost to the CEFC is expected to unlock around $6 billion worth of private sector investment, supporting local jobs, energy security and economic growth.
“We are building Australia’s future, not taking Australia backwards,” Albanese said.
Learmonth added that the Australian Energy Market Operator (AEMO) expects investment in new energy infrastructure to support more than 60,000 energy jobs over the next 20 years, with the retirement of coal from the nation’s system prior to 2040.
“In the six months to December 2024, the CEFC made investments commitments of $1.1 billion through its general portfolio, with a total transaction value of $6.3 billion, representing an additional $4.85 for each dollar of CEFC capital committed,” Learmonth said.
“This is a strong indication of the level of market interest in a diverse range of clean energy investment opportunities.”
These include the proposed CEFC-backed Neoen 440 MW Culcairn Solar Farm and 100 MW / 200 MWh battery energy storage system (BESS) in New South Wales (NSW), which is expected to create more than 400 construction jobs, generate enough clean energy to power 160,000 homes and deliver local benefits to the region worth some $10 million over its lifetime.
Federal Minister for Climate Change and Energy Chris Bowen said there are big opportunities and big benefits for Australia as the world shifts to renewable energy.
“We’re getting on with the changes needed to make the most of Australia’s natural comparative advantage, having some of the best sun, wind, and critical mineral resources in the world,” Bowen said.
“Meanwhile Peter Dutton’s only answer to how he’d make things better is to throw this opportunity away, cancel the programs and the projects that are working to make Australia better right now, and wait 20 years to build the world’s most expensive form of power. It’s madness.”
The CEFC has made lifetime commitments through its general portfolio in excess of $14.2 billion to the end of 2024, across 300 transactions with a total transaction value of more than $62 billion.
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