Australia’s Clean Energy Finance Corporation has partnered with infrastructure manager Palisade to attract investment in early stage renewable energy project developments.
Announced earlier this week, Australia’s Clean Energy Finance Corporation (CEFC) will partner with Palisade Investment Partners to invest $100 million in an effort to attract further investment to the tune of $1 billion intended to accelerate the development of Australian renewable energy projects.
“Australia has a considerable funding gap in new investments in renewable energy if we are to meet the Renewable Energy Target,” said Oliver Yates, CEO of CEFC. “We expect this transaction will play an important role in catalysing new finance to help close that gap and accelerate our overall renewable energy capacity.
“Traditionally, institutional investors have tended to buy into built infrastructure projects. Through this strategy we are looking to attract investors at an earlier stage of project development, so we can more effectively accelerate the construction of commercially-viable projects. This means we can inject equity into projects at the time they need it most, so they can begin generating energy as soon as possible.”
The CEFC will allocate up to $100 million of equity to the initial $1 billion, and Palisade will contribute another $400 million in equity through a combination of managed funds and its Direct Investment Mandate clients, which include names like VicSuper, LGIAsuper, and Qantas Super. In addition, Australian banks NAB and Commonwealth Bank will work with the pairing to provide debt financing for the portfolio of renewable energy projects, which the group hopes will reach in excess of $1 billion.
“Palisade is well placed to work with our investors and partners to identify and commit to eligible renewable energy projects which can make a substantial contribution to Australia’s clean energy capacity,” said Roger Lloyd, Palisade Investment Partners CEO. “This strategy is capable of initially developing up to 500MW in solar and wind generation projects throughout Australia. Considerable time has been invested in identifying projects to which to apply this funding. We see renewable energy investments fulfilling our investment criteria and delivering robust and sustainable cash flows, which are important to our investors.”
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