30 October 2019
The Clean Energy Finance Corporation today welcomed the Australian Government’s announcement that it will support further investment in Australia’s energy transmission system with a new $1 billion Grid Reliability Fund.
Prime Minister Scott Morrison announced the $1 billion Grid Reliability Fund to support Government investment in new energy generation, storage and transmission infrastructure, including eligible projects shortlisted under the Underwriting New Generation Investments (UNGI) program. Mr Morrison said that the CEFC would administer the new fund. $1 billion boost for power reliability.
CEFC CEO Ian Learmonth said: “We are pleased the Australian Government has expressed confidence in the role of the CEFC in contributing to a stronger energy grid via a Grid Reliability Fund.
“We recognise that investment in new generation, storage, transmission and infrastructure is critical to support the security and reliability of Australia’s energy grid. We look forward to working with governments and potential investors in accelerating the development of these opportunities.”
The CEFC has a strong track record of leading investment in the clean energy sector. Since inception, CEFC investments have helped drive more than $24 billion in additional private sector investment commitments Australia-wide, including $6.3 billion in 2018-19.
In addition, $718 million in CEFC capital has been repaid or returned since inception, including a record $321 million in 2018-19, underscoring the CEFC’s ability to earn a positive return on its investments and reinvest on behalf of taxpayers.
The CEFC has established a specialist Clean Futures Team to deepen its focus on long-dated emerging opportunities in these areas. This includes grid augmentation – including transmission, interconnectors and renewable energy zones – as well as hydro, grid-scale battery storage and hydrogen.
The proposed $1 billion GRF is in addition to the CEFC’s existing $10 billion capital allocation.
Mr Learmonth added: “This additional capital will work alongside our continuing investments in solar, wind, hydro, bioenergy and other technologies in the renewable energy sector. We also have a strong focus on addressing some of Australia’s toughest emissions challenges, across agriculture, infrastructure, property, transport and waste.”