ANNOUNCEMENT 01 May 2017

The Australian government-funded Clean Energy Finance Corporation and the Australian Renewable Energy Agency allocated a total of AUD 35 million to clean energy company Canadian Solar to finance two solar farm projects in Queensland.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

Clean Energy Finance Corporation. Media. "CEFC finance for large-scale solar projects helps drive investment in regional Queensland" Available at: https://www.cefc.com.au/media/files/cefc-finance-for-large-scale-solar-projects-helps-drive-investment-in-regional-queensland/

Australian Government. Department of Industry, Innovation and Science. Australian Industry Participation. Available at: https://industry.gov.au/industry/IndustryInitiatives/AustralianIndustryParticipation/Pages/default.aspx

Inception date: 01 May 2017 | Removal date: open ended
Still in force

State loan

On 1 May 2017, the Clean Energy Finance Corporation (CEFC) of Australia announced the allocation of AUD 31.5 million (circa USD 24 million) to Canadian Solar to help develop two solar farm projects in Queensland.

The objective of the debt funding is to speed up the construction of the solar farms in Oakey and Longreach which have a total estimated cost of AUD 76.2 million (USD 57 million). 

The two solar farms are expected to produce 40 MW of power when finalized.

The projects will receive support from local engineering company O'Donnell Griffin Pty Ltd.

In addition to the resources provided by the CEFC, Canadian Solar also receive an AUD 3.5 million (USD 2.6 million) grant provided by the Australian Renewable Energy Agency (ARENA).

 
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.
 
 
Update
On 30 December 2017, the CEFC allocated another AUD 55 million (circa USD 43 million) to develop the second phase of solar panel installation in the Oakey solar farm (see related state acts)

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 01 May 2017 | Removal date: open ended
Still in force

Local sourcing

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 35 million (circa USD 24 million) credit line allocated to Canadian Solar, it is subject to local content requirements.