Clean Energy Finance Corp accelerates private sector investments
The Clean Energy Finance Corporation may have generated more social impact from its investment program over the last year against the background of a government owner demanding a lift in returns from the public sector financier."Each dollar of CEFC investment commitments in 2015/16 was matched by A$1.95 from the private sector," the CEFC said.This is up from $1.80 for each $1 of CEFC commitments in 2014/15.CEFC said it committed $837 million to new investments in the Australian clean energy sector over the 2015/16 financial year, "contributing to projects with a total value of $2.5 billion."It put its investment commitments since its inception in 2013 at $2.3 billion, "contributing to projects with a total value of $5.7 billion."CEFC chief executive officer Oliver Yates asserted that the CEFC was fulfilling its leadership role in transforming clean energy investment in the Australian economy. "This year we committed more funds to a greater number and more diverse range of investments than in any other year. We have also mobilised an even greater amount of private sector capital into clean energy activities," Yates said. "Across the economy, we are working to accelerate investment in renewable energy, increase energy efficiency in the manufacturing and transport sectors and improve energy standards in the built environment. Our investments are delivering clean energy solutions to rural and regional Australia, as well as to our cities."The financier said "all investments generate a return above the Government's costs of funds". Its quarterly investment reports shows expected rates of return on projects over the financial year from as low as 3.0 per cent up to 10.6 per cent.Over the 2014/15 year the CEFC put its yield at 6.1 per cent for the year, "lower than the figure of seven per cent from the corresponding period" in 2013/14.Under a new investment mandate adopted in May this year the CEFC must target returns to three to four per cent above the government bond rate. It had previously been four to five per cent.