ANNOUNCEMENT 15 Dec 2017

The Australian government-funded Clean Energy Finance Corporation allocated AUD 207 million to clean energy company WIRSOL Energy Pty Ltd to finance two solar farm projects in Victoria and Queensland.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Clean Energy Finance Corporation. Media. "CEFC reaches 1GW solar milestone with finance across 20 large scale solar projects" Available at: https://www.cefc.com.au/media/files/cefc-reaches-1gw-solar-milestone-with-finance-across-20-large-scale-solar-projects/

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

Australian Government. Department of Finance. Published Executive Summaries of Australian Industry Participation Plans. Wemen Sun Farm. Available at https://industry.gov.au/industry/IndustryInitiatives/AustralianIndustryParticipation/Documents/AIP%20Commonwealth%20Executive%20Summaries/Wemen%20Sun%20Farm%20-%20AIP%20Plan%20-%20Exec%20Summary%20-%20Final.pdf

Australian Government. Department of Finance. Published Executive Summaries of Australian Industry Participation Plans. lermont Solar Farm. Available at https://industry.gov.au/industry/IndustryInitiatives/AustralianIndustryParticipation/Documents/AIP%20Commonwealth%20Executive%20Summaries/Clermont%20Solar%20Farm%20-%20AIP%20Plan%20-%20Exec%20Summary%20-%20Final.pdf

Inception date: 15 Dec 2017 | Removal date: open ended
Still in force

State loan

On 15 December 2017, the Clean Energy Finance Corporation (CEFC) of Australia announced the allocation of AUD 207 million (USD 158 million) to WIRSOL Energy Pty Ltd to increase the solar capacity of the Wemen Solar Farm in Victoria and the Clermont Solar Farm in Queensland.

The objective of the debt funding is to accelerate the development of 200MW of additional solar capacity.

The resources have been distributed as it follows:

  • AUD 110 million for the Wemen Solar Farm in Victoria for a power capacity of 110 MW;
  • AUD 97 million for the Clermont Solar Farm in Queensland for a power capacity of 90 MW.

The capacity of both solar farms is expected to supply power to 65,000 homes.


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.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A
Inception date: 15 Dec 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 207 million (USD 158 million) credit line allocated to WIRSOL Energy Pty Ltd, is subject to local content requirements.

In this context, the WIRSOL Energy Pty Ltd submitted one AIP plan for each of the solar farms stating that the supply of electrical equipment, the tracking system, and the solar PV modules would be exclusively offered to local companies.