Case studies

Australian Renewables Income Fund backs new renewable energy investment opportunities

The Australian Renewables Income Fund (ARIF), a renewable energy fund managed by Infrastructure Capital Group, will focus on acquiring and developing large-scale wind and solar developments, as well as energy-from-waste projects, large-scale battery storage and pumped hydro.

ARIF has three operating seed assets: - the 55MW Mumbida Wind Farm south-east of Geraldton in Western Australia; the 132MW Hallet 4 Wind Farm in Brown Hill South Australia and the 107MW Bald Hills Wind Farm, in Gippsland Victoria.

All three assets have current contracted power purchase agreements with major entities.

The CEFC has made a cornerstone equity commitment of up to $100 million to ARIF. The CEFC’s commitment is directed towards further renewable energy asset purchases, including yet-to-be developed large-scale assets, as well as operating projects.

Based on previous investment experience, the CEFC expects its investment to contribute to the development of some 260MW in renewable generation assets, with the potential to deliver carbon abatement of about 630,000 tonnes a year.

There are currently limited fund style opportunities for institutional investors seeking equity exposure to renewable energy assets. The CEFC is investing in ARIF to expand the availability of tailored renewable energy investment options for investors, and to respond to the expectations of fund members. It is also helping increase the amount of finance available for large-scale renewable energy projects, especially at the early stage of development.