ANNOUNCEMENT 13 Mar 2017
The Australian government-funded Clean Energy Finance Corporation allocated AUD 77 million in debt finance to the local company Edify Energy.
NUMBER OF INTERVENTIONS
Clean Energy Finance Corporation. Media. "CEFC announces next wave of large-scale solar finance, with $77m for projects in Queensland and Victoria" Available at: https://www.cefc.com.au/media/files/cefc-announces-next-wave-of-large-scale-solar-finance-with-77m-for-projects-in-queensland-and-victoria/
Australian Government. Department of Industry, Innovation and Science. Australian Industry Participation. Available at: https://industry.gov.au/industry/IndustryInitiatives/AustralianIndustryParticipation/Pages/default.aspx
On 13 March 2017, the Clean Energy Finance Corporation (CEFC) of Australia announced the allocation of AUD 77 million (USD 58 million) for the development of three solar farm projects located in Queensland and Victoria. The projects are developed by Australia's Edify Energy alongside WIRSOL.
The objective of the debt funding is to speed up the construction of the solar farms located in Collinsville and Kerang which will add a combined 165MW (AC) of renewable energy to the national electricity grid.
The projects will also receive financial support from Commonwealth Bank and Germany's NORD/LB.
Clean Energy Finance Corporation
The Clean Energy Finance Corporation is a government-funded financier created to fund clean energies. To achieve these goals, the Australian government has provided credits of AUD 2 billion each year from 1 July 2013.
The statutory text, the Clean Energy Finance Act 2012, states that only solely or mainly Australian-based investments are eligible for these resources.
The Clean Energy Finance Corporation financing is subject to the Australian Industry Participation (AIP) policy. This framework states that all programs enclosed in this policy must encourage the participation of Australian companies in major public and private projects carried in the country. In this sense, companies applying for a CEFC credit line must provide an AIP Plan to demonstrate the strategy to maximize opportunities for Australian industry to participate in the project. Therefore, the AUD 77 million (USD 58 million) credit line allocated to Edify Energy, it is subject to local content requirements.
In addition to the loan provided by the Clean Energy Finance Corporation (CEFC) of Australia, on March 13, 2017, the CEFC announced that Edify Energy has also received AUD 9.5 million (USD 7.2 million) grant funding from the Australian Renewable Energy Agency (ARENA) to finance the construction of the Whitsunday Solar Farm.
This solar farm is expected to generate 144,000M Wh of energy annually and it has a 20-year Power Purchase Agreement (PPA) with the Queensland Government.