Unlocking mid-scale renewable energy projects with Infradebt
Distribution Connected Accelerator Program focuses on projects up to 5MW capacity
The CEFC has committed $100 million to back mid-range renewables projects through an Infradebt-managed program to unlock a constrained segment of the clean energy sector.
$100 million
CEFC commitment
5MW capacity
projects supported
Mid-scale
renewables
Australia's energy transition will not be delivered through a handful of mega-projects alone. Smaller, distribution-connected projects have a critical role to play because they can often move from development to operation significantly faster.Alexander AustinCEO, Infradebt
Our investment
The CEFC has committed $100 million to specialist debt fund manager Infradebt to back a Distribution Connected Accelerator Program (DCAP) that drives the development of mid-range renewable energy projects.
The DCAP is designed to reduce financing barriers for smaller projects through concessional senior debt financing.
It is expected to finance the development of up to 16 hybrid solar, battery and battery retrofit projects and supports a pipeline of distribution-connected projects to be ready to commence construction in 2027.
Prospective proponents are shortlisted through an Infradebt-led competitive process. Infradebt is focusing on projects up to 5MW but can consider larger projects.
The DCAP builds on a separate previous $150 million CEFC commitment to Infradebt.
Visit the Infradebt website for more details about Infradebt and the DCAP selection process.
OUR IMPACT
Targeting the ‘missing middle’
Mid-scale renewables are a powerful lever in unlocking Australia’s renewable energy future and are often referred to as the ‘missing middle’ between individual rooftop solar and utility-scale renewables.
Smaller-scale, distribution-connected projects can connect to the grid faster by leveraging existing network capacity and avoiding transmission bottlenecks that can delay larger-scale developments.
However, these smaller, ready-to-connect wholesale generation projects can face barriers due to size and transaction costs.
By providing targeted capital and certainty and efficiency of process, CEFC finance is helping to unlock a constrained segment of the market while supporting a more resilient energy system and utilising latent capacity in distribution networks.
The CEFC concessional senior debt helps create a financing pathway for distributed energy projects, supporting them to reach operations and accelerate Australia’s energy transition using existing network infrastructure.
