The Clean Energy Finance Corporation (CEFC) is still under threat from the Abbott Government but they are still supporting renewable energies. They have announced big investments worth around $200 million to help solar power become even more affordable to Australians.

The CEFC has provided $120 million to unlock and expand financing options for Australians to help avoid high upfront costs of solar power systems. They are contributing $70 million for US solar giant SunEdison to come into Australia and provide financing such as leasing and Power Purchase Agreements (PPA) for residential and commercial solar PV systems. SunEdison will also be adding funding of $46 million.

CEFC will be providing $20 million to Australian solar company, Tindo Solar, and $30 million to another US backed company to provide similar financing services.
“While there has been widespread take up of solar PV by the residential sector in Australia, with about 1.25 million solar rooftops, there is still considerable untapped potential,” the CEFC says. They also noted that the commercial sector has major opportunity for expansion.

“With the CEFC’s finance, SunEdison is able to introduce a number of financing models to Australia, using our global experience, that will provide an immediate cost saving to customers and expand the use of solar resources here,” says Pashupathy Gopalan, President, SunEdison Asia Pacific, Middle East and South Africa.

$80 million has been invested with Colonial First State Global Asset Management to create Australia’s first unlisted clean energy, direct infrastructure investment platform that could boast capital of up to $580 million within five years. The CEFC’s investment will help fund commercial scale solar systems for shopping centres and other such large places of business as well as focus on energy efficiency and other forms of renewable energies.

“(This fund) will help meet the needs of these investors and the growing interest from superannuation fund members in socially responsible investment (SRI) investments,” said CEFC chief executive Oliver Yates. “By providing a new investment option for superannuation funds and other institutional investors, the Fund will attract new sources of investment in renewable energy, unlocking new sources of capital for the market and expanding the investor base for this sector.”

Bob Baldwin, the parliamentary secretary for Industry, was telling those at Clean Energy Week in Sydney this week that the CEFC (and ARENA) were still going to be repealed. They say the CEFC is taking too many risks and was not needed in the era of a ‘budget emergency.’ He said that, “This cannot be justified at a time of budgetary constraint.” He denied that the corporation is needed as a stand-alone agency even though the government admits that it may not meet emission targets without it.
All this at the same time as the CEFC releases their annual statement showing abatement at net benefit to the government and making reasonable returns on their investments. Each of their direct investments (over 40 investments and 25 projects co-financed) will earn an average financial yield of 7%. Yet the Abbott Government still seems intent on getting rid of it.