Rewiring the Nation Fund
Rewiring the Nation is a key element in Australia’s national efforts to grow the renewable energy sector in order to cut emissions by 43 per cent by 2030 and achieve net zero emissions by 2050.
Through the $19 billion CEFC Rewiring the Nation Fund, the CEFC has been appointed to help spearhead investment in a range of essential projects, including transmission, infrastructure, long-duration storage, electricity distribution network infrastructure and distributed energy resources.
Other investments may range from electricity grid infrastructure to support hydrogen hubs and offshore electricity generation projects as well as demand management initiatives. These investments will build on previous CEFC investments in landmark grid, transmission and energy storage developments.
CEFC RTN Fund Objectives
|Modernising Australia's electricity grid, centred on implementing the Australian Energy Market Operator Integrated System Plan|
|Supporting the rollout of network infrastructure in Western Australia and the Northern Territory|
|Enabling the energy transition, including supporting Australia to achieve its net zero target|
Capital intensive task
The Rewiring the Nation (RTN) Fund is intended to reduce the funding costs of building the required grid electricity infrastructure needed to achieve Australia’s energy transition. CEFC capital will be co-invested with private and public sector proponents. Concessional finance arrangements may be made on a case-by-case basis. Subject to commercial considerations, the CEFC expects to make RTN-related investment decisions in the 2023–24 year. The timing of all CEFC investments is determined on a case-by-case basis. While RTN-related transactions are likely to be large and complex, it is important Australia moves swiftly to modernise the grid and related infrastructure in order to reach our renewable energy target of 82 per cent by 2030.
Rewiring the Nation Fund: overview
Consistent with the RTN policy objectives and the CEFC Mandate Investment Direction 2023.
CEFC RTN-related investments may include proposals that support:
1The development or achievement of an AEMO ISP project, or other electricity transmission project identified by the CEFC Board, that satisfies or otherwise aligns with RTN policy objectives
2The development or achievement of a project required to enhance long duration grid storage, enhance electricity distribution network infrastructure (including distributed energy resources), or enhance electricity grid infrastructure to support a hydrogen hub or offshore electricity generation project
3Reduction in greenhouse gas emissions, and/or support or strengthening of the security, reliability and affordability of Australia's electricity grids, including demand management projects
4Opportunities to enhance benefits to electricity consumers, including additional renewable energy generation facilitated by RTN investments.
RTN is the centrepiece of the Australian Government Powering Australia plan, created to provide low-cost finance to upgrade and modernise Australia’s electricity grids, through creation of the Rewiring the Nation Office, with CEFC as the finance arm, the Australian Energy Market Operator as a technical adviser and the Australian Energy Infrastructure Commissioner as the adviser relating to social licence matters.
The RTN Fund program extends Australia-wide, with investment opportunities in all electricity grid and supporting infrastructure. We expect transmission network, distribution network (including distributed energy resources) and long duration storage will be investment priorities, in addition to other opportunities that reduce emissions and support or strengthen the security, reliability and affordability of Australia’s electricity grids, including demand management projects. RTN investments must comply with the CEFC Act and Investment Guidelines.
Our first RTN Fund investment commitment of $100 million to support the delivery of clean energy projects via the NSW Electricity Infrastructure Roadmap was announced in October 2023. We are in advanced discussions with governments, regulators and investors on a range of further RTN-related opportunities. While RTN-related transactions are likely to be large and complex, it is important we move swiftly to modernise our energy system as part of our broader renewable energy ambitions. In parallel, we continue to invest in renewable energy and energy storage.
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