Since inception, the CEFC has made $1.4 billion in investment commitments for projects over $3.5 billion in value (at 30 June 2015). The CEFC’s net portfolio of $1.2 billion grew by 29 per cent across the 2014-15 year, demonstrating our active role in providing necessary investment to help the continued development of the clean energy sector across a wide range of areas. We are on track to meet our 2018 Portfolio Vision.
The response that we have received from the market has remained extremely encouraging. Since commencing operations, we have received proposals from more than 300 project proponents seeking CEFC finance of almost $8 billion, for total project costs of more than $25 billion (at 30 June 2015).
The continued positive response from the market has enabled the CEFC to successfully build a total loan portfolio spanning a diverse range of economic activity in areas including energy from waste, ocean energy, bioenergy, wind, solar, energy efficiency projects in manufacturing, local government and the community sector, and efficiency upgrades across a range of industries.
As at 30 June 2015
The CEFC’s portfolio of contracted investments is expected to earn an average return of approximately 6.1 cent (as reported in our 2014-15 Annual Report). Our participation in the market provides liquidity to ensure efficient pricing. Our lower cost of funds, flexible structuring and capacity to match the term of the financing to the life of the assets has allowed us to de-risk transactions so that private financiers become involved. We have helped create a demonstrable improvement to the flow and diversification of funds into the sector - in particular from new sources, including European and Asian institutions, working to crowd-in (not crowd-out) capital from new and existing sources.
We have joined the banks at the table as a sector-focused entity, with strong financial and energy sector skills in deal structuring and addressing risk issues to enable transactions to proceed. Importantly, the CEFC's participation has been largely without concessionality.
On the basis of internationally accepted terms and returns for the sector, co-financiers have been receptive to working with us and our approach and purpose. Our participation has helped facilitate involvement of Australian industry in the supply chain, contributing to the further development of local market manufacturing, building its capability and scale. The CEFC's involvement has helped create valuable business and new regional employment opportunities.
Our pioneering of new aggregation finance and corporate facilities has helped increase awareness and adoption of energy efficiency across a broad market sector and provided a demonstration of the benefits to encourage others to follow. The CEFC's role is to develop these market segments with a co-finance and/or delivery partner with a view to exiting once the market is established.
Read more about our investments
Read about our pipeline