RTN Fund backs clean energy superhighway
Record finance for two major energy infrastructure projects to connect millions of consumers to low emissions, low-cost renewable energy.
Up to $1.935 billion in CEFC finance for HumeLink, linking the Greater Sydney electricity load centre with the Snowy Mountains Hydroelectric Scheme, Energy Connect in south-west NSW and the NSW element of VNI West.
Critical
grid infrastructure
Up to $1.935 billion
CEFC commitment
~$1 billion
economic benefits
In making this very substantial investment commitment, we have drawn on the considerable scale and specialist expertise developed in our first decade of investment across the economy. Just as we used our capital to build investor confidence in the growth of our large-scale solar and energy storage sectors, we are now extending that focus to the crucial area of transmission.Ian LearmonthCEO, CEFC
Our investment
The CEFC committed up to $1.935 billion, via the CEFC Rewiring the Nation Fund, to enable the construction of a clean energy “superhighway” connecting millions of consumers to low emissions, low-cost renewable energy as Australia pushes toward net zero emissions by 2050.
The CEFC finance, via the CEFC Rewiring the Nation (RTN) Fund, is backing developer Transgrid in delivery of two major energy infrastructure projects: HumeLink and the NSW element of the Victoria-NSW Interconnector (VNI West).
The CEFC worked with Transgrid to develop a tailored financing package, combining concessional senior debt with subordinated notes. The investment commitment was subsequently reduced to $1.35 billion due to changes in financial market conditions and increased private sector investment participation.
HumeLink will link the Greater Sydney electricity load centre with the Snowy Mountains Hydroelectric Scheme (Snowy 2.0), EnergyConnect in south‑west NSW and the NSW element of VNI West (NSW). The infrastructure will deliver up to 2,000 MW of pumped storage to major population centres, with Transgrid modelling estimating this vast firming capacity will also enable the grid transmission of an additional 2,570 MW of renewable energy.
Transgrid Security Holders made the Final Investment Decision for HumeLink in December 2024.
Transgrid expects detailed design, procurement, project mobilisation and main construction works to reach completion in late 2027. Transgrid is prioritising local employment, training and skills development to provide lasting community benefits, including investing more than $11 million directly into the community to provide enduring social legacy outcomes.
CEFC capital through the RTN Fund plays an essential role by providing innovative finance solutions for projects such as HumeLink and VNI West (NSW) to help network service providers overcome market headwinds, giving them the confidence to make substantial, long-term investment decisions.Paul McCartneyChief Investment Officer - Rewiring the Nation, CEFC
OUR IMPACT
Grid and transmission infrastructure
Through the specialist RTN fund, the CEFC is spearheading investment in transmission infrastructure, long-duration storage, electricity distribution network infrastructure and distributed energy resources – projects which will help Australia achieve net zero emissions by 2050.
The Australian Energy Market Operator (AEMO) forecasts the progressive closure of Australia’s remaining coal-fired power stations will see up to 90 per cent of today's capacity closed by 2035 and all before 2040, requiring new investment in generation, storage and transmission.
AEMO expects investment in transmission projects to be recouped while also saving consumers $18.5 billion in avoided costs and delivering emissions reductions valued at a further $3.3 billion. It also forecasts that building and maintaining energy infrastructure over the next 20 years will support more than 60,000 energy jobs.
Learn more about the RTN Fund.
I want to acknowledge the landowners, communities, local contractors, business owners and other stakeholders that we have worked with to prepare HumeLink and will continue to engage with throughout and after construction. We will continue to prioritise local employment, training and skills development to provide lasting community benefits, including investing more than $11 million directly into the community to provide enduring social legacy outcomes.Brett RedmanCEO, Transgrid
