New Directive to Clean Energy Finance Corporation (CEFC) supports renewable energy investment

New clean energy investment mandate a shift from policy proposed by Abbott
Directive to CEFC to focus on innovative and emerging technologies will enhance support for windfarms and small-scale solar projects, Guardian, Shalailah Medhora, 24 Dec 15. The Clean Energy Finance Corporation (CEFC) has been directed to focus on innovative and emerging technologies, reversing a mandate by the former prime minister Tony Abbott that would have specifically blocked funding for windfarms and small-scale solar projects.

The mandate came into effect on Thursday, with a new clause outlining the shift in focus.

“As part of its investment activities in clean energy technologies, the corporation must include a focus on supporting emerging and innovative renewable technologies and energy efficiency, such as large-scale solar, storage associated with large- and small-scale solar, offshore wind technologies, and energy efficiency technologies for cities and the built environment,” the clause said. “ This will in turn increase the uptake of emerging technologies such as large-scale solar and energy efficiency.”

The investment mandate is not exclusive, meaning that established technologies can still be funded, and not retrospective, so projects that have already been funded will not be affected.

“The CEFC will therefore continue to pursue a diverse range of investment activities that are within the scope of the CEFC Act and this new investment mandate,” a statement by the body said.

“Together, the new investment mandate and the accompanying explanatory statement provide guidance on how the CEFC should approach investment in mature and established technologies, such as conventional onshore wind and conventional hydro,” it said. “It is the government’s expectation that, in many circumstances, projects involving mature technologies should be able to secure finance from commercial financing sources.”

The mandate is a shift from what Abbott proposed in July, when he said the body should no longer fund small-scale solar projects such as rooftop panels and wind technology…….

The CEFC chairwoman, Jillian Broadbent, wrote to the environment minister, Greg Hunt, and the finance minister, Mathias Cormann, welcoming the new mandate. She said it was an “appropriate approach that allows the CEFC to support the Australian government policy priorities while still allowing a measure of investment flexibility”. …….http://www.theguardian.com/environment/2015/dec/24/new-clean-energy-investment-mandate-a-shift-from-policy-proposed-by-abbott