ANNOUNCEMENT 12 Dec 2016
The Australian government-funded Clean Energy Finance Corporation allocated AUD 120 million to CWP Renewables to finance a wind farm in New South Wales.
NUMBER OF INTERVENTIONS
Clean Energy Finance Corporation. Media. "CEFC investment strengthens case for merchant risk in accelerating renewables development" Available at: https://www.cefc.com.au/media/files/cefc-investment-strengthens-case-for-merchant-risk-in-accelerating-renewables-development/
Australian Government. Department of Industry, Innovation and Science. Australian Industry Participation. Available at: https://industry.gov.au/industry/IndustryInitiatives/AustralianIndustryParticipation/Pages/default.aspx
On 12 December 2016, the Clean Energy Finance Corporation (CEFC) of Australia announced the allocation of AUD 120 million (circa USD 90 million) to CWP Renewables for the development of the Sapphire Wind Farm in northern New South Wales.
The objective of the debt funding is to demonstrate the bankability of large renewable energy projects. The Sapphire Wind Farm is expected to generate 270MW of renewable energy.
The total cost of the project is estimated at AUD 588 million (USD 440 million), and Commonwealth Bank, Sumitomo Mitsui Banking Corporation, and EKF, Denmark's export credit agency are co-financiers of the project.
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 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 120 million (USD 90 million) credit line allocated to CWP Renewables, is subject to local content requirements.