$1bn clean energy partnership announced in Australia
Clean Energy Finance Corporation and Palisade have announced a new partnership to attract investment in clean energy projects
Australia’s Clean Energy Finance Corporation and infrastructure manager Palisade have announced a new partnership to attract investment of $1 billion in clean energy projects.
CEFC and Palisade will invest $500 million in equity in an effort to generate further interest in the development of renewable energy projects in Australia.
Oliver Yates, CEO of CEFC, said: “Australia has a considerable funding gap in new investments in renewable energy if we are to meet the Renewable Energy Target… 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.”
Mr Yates added: “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. “
CEFC will allocate up to $100 million, and Palisade will contribute another $400 million through a combination of managed funds and its Direct Investment Mandate clients, which include names like VicSuper, LGIAsuper, and Qantas Super.
Australian banks NAB and Commonwealth Bank will provide debt financing for the portfolio of renewable energy investments, which the group hopes will reach $1 billion.
Roger Lloyd, CEO of Palisade Investment Partners, said: “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.”
Mr Lloyd added: “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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