$1 billion to accelerate renewable energy projects

The Clean Energy Finance Corporation (CEFC) and Palisade Investment Partners have announced a $1 billion strategy aimed at accelerating the development of Australian renewable energy projects.

CEFC CEO Oliver Yates said the strategy, which involves funds managed by Palisade, meets the growing appetite from mainstream investors for renewable energy projects. At the same time, it will help unlock capital to support accelerated growth in the renewable energy sector.

“Traditionally, institutional investors have tended to buy into built infrastructure projects,” Yates explained. “Through this strategy we are looking to attract investors at an earlier stage of project development, so we can more effectively accelerate the construction of commercially viable projects. This means we can inject equity into projects at the time they need it most, so they can begin generating energy as soon as possible.”

The CEFC is allocating up to $100 million of equity to the initial $1 billion investment strategy. Palisade is committing up to $400 million of additional equity through a combination of managed funds and its direct investment mandate clients, including VicSuper, LGIAsuper and Qantas Super. NAB and the Commonwealth Bank will also work with the CEFC and Palisade to provide debt financing for the renewable energy projects.

“Palisade is well placed to work with our investors and partners to identify and commit to eligible renewable energy projects which can make a substantial contribution to Australia’s clean energy capacity,” said Palisade CEO Roger Lloyd. “This strategy is capable of initially developing up to 500 MW in solar and wind generation projects throughout Australia. Considerable time has been invested in identifying projects to which to apply this funding.”

Lloyd said Palisade will build a portfolio of renewable energy projects in excess of $1 billion, based on the investment mandates agreed with the CEFC and the other major investors. In addition to its direct mandates, the company will this year launch a pooled renewable energy fund to provide a broader range of investors with access to investments in renewable energy.

“We see renewable energy investments fulfilling our investment criteria and delivering robust and sustainable cashflows, which are important to our investors,” said Lloyd.