Where we invest

Investment approach

We invest on a case-by-case basis, providing finance on the least generous terms possible for a project to proceed, so it is as close to market terms as possible.

We invest on a case-by-case basis, and prefer investment opportunities where:

  • The project supports diversification of the CEFC's portfolio: geographically, technologically, by off-take (power purchase agreement or merchant sale of power), by counterparties and project sponsors
  • The project has a co-financier
  • There is a sufficient equity buffer against underperformance
  • The project is selling power at 'merchant rates' and the loan is expected to be comfortably serviced from revenue even if actual prices received fall below current future forecast prices

Our investment decisions are also influenced by the external public policy benefits they bring to the Australian economy, including:

  • Reducing emissions
  • Moving new clean energy technologies down the cost curve and bringing technological diversity into the energy mix
  • Supporting productivity gains through energy efficiency
  • Encouraging innovation, building capability and leveraging private sector funds into the clean energy sector

Through our diversified portfolio. we aim to reduce the risk posed by a large concentrated exposure in any single geography, technology, or counterparty. Any potential investment must also:

  1. Meet the "complying investment" definition under the CEFC Act
  2. Not be in breach of the current Government Mandate (as amended from time to time).