ANNOUNCEMENT 20 Jan 2022

On 20 January 2022, the Clean Energy Finance Corporation (CEFC) invested AUD 37 million in the Blue Grass Solar Farm project.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 1 neutral
  • 0 liberalising

SOURCE

Clean Energy Finance Corporation. Media. Latest News. "CEFC commits to new solar farm as Australia ramps up its transition to net zero by 2050" of 20 January 2022. Available at:
https://www.cefc.com.au/media/media-release/cefc-commits-to-new-solar-farm-as-australia-ramps-up-its-transition-to-net-zero-by-2050/

X-ELIO. Press Room. "X-ELIO’s largest Australian solar farm reaches Financial Close." Available at:
https://x-elio.com/x-elios-largest-australian-solar-farm-reaches-financial-close/

Inception date: 20 Jan 2022 | Removal date: open ended

State loan

On 20 January 2022, the Clean Energy Finance Corporation (CEFC) allocated AUD 37 (USD 26.8) million to fund the Blue Grass Solar Farm project. The project is managed by X-ELIO, an Australian company specializing in renewables development and photovoltaic (PV) plants.

The financing will build the 200MWp Blue Grass Solar Farm, located in Queensland. The farm will consist of 375,000 bifacial panels and feature half-cut cells technology, which increases efficiency. The solar farm should reduce nearly 320,000 tonnes CO2-e per annum. It is also expected that 400 jobs will be created during the plant's construction. 

It is noteworthy that with this financial investment, the CEFC has contributed to delivering more than "3.5 GW of low emissions generating capacity, including 2 GW of solar and 1.5 GW of wind." It is also the CEFC's 32nd solar farm investment. The majority of CEFC investments in projects related to solar farms take the form of state loans, therefore state loan was selected as the intervention type. 

Investing in solar is part of ARENA's Solar 30 30 30 initiative, meaning "30 per cent efficiency at 30 cents per installed watt by 2030." ARENA is another publically-funded corporation investing in clean energy projects. To view other interventions supporting solar from both the CEFC and ARENA, please, see related state acts.

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. CEFC funding takes the form of debt and equity finance or a combination of both.

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

 
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AFFECTED PRODUCTS

 
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Inception date: 20 Jan 2022 | Removal date: open ended

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, it can be understood that the AUD 37 million (USD 26.8 million) investment allocated to the Blue Grass Solar Farm is subject to local content requirements.

 
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