The CEFC Act requires the CEFC to invest in eligible clean energy technologies,
including renewable energy, energy efficiency and low emissions technologies.
Further, we are required to ensure that, at any time on or after 1 July 2018, at least half of CEFC funds are invested in renewable energy technologies. At 30 June 2020, investment in renewable energy technologies represented 53.2 per cent of CEFC funds invested.
Renewable energy technologies
In 2019–20, we made new investment commitments of $529.5 million to renewable energy projects, compared with $940 million in the 2018–19 year, reflecting a constrained market for new investment in renewables, partially due to the build out of the Renewable Energy Target.
Project proponents have also faced delays and challenges as the energy grid adapts to accommodate renewable energy generation levels which were not contemplated when the electricity networks were initially designed. These have included delays in construction and connection, as well as the adverse impact of movements in marginal loss factors and the curtailment of new energy generation.
Energy efficiency technologies
In 2019–20, we made new investment commitments of $508.9 million to energy efficiency opportunities, slightly up on the $494 million in the prior year. These investment commitments, across mature and emerging technologies, address emissions challenges in key areas of the economy.
Our finance is supporting energy efficient investments in residential, commercial and industrial buildings, as well as best practice and market leading design, construction and operations to cut emissions in infrastructure. Manufacturers are drawing on CEFC finance to replace energy intensive equipment with more efficient models and processes. We also continue to provide tailored asset finance for energy efficient farming and vehicles.