Clean Energy Finance Corporation (CEFC) and Palisade Investment Partners have announced a new funding strategy aimed at accelerating the development of Australian renewable energy projects.
The Au$1 billion (~$770 million) strategy, which involves funds managed by Palisade, is expected to unlock much needed capital to support accelerated growth in the renewable energy sector.
The CEFC is allocating up to Au$100 million of equity to the initial Au$1 billion investment strategy, while Palisade is committing up to Au$400 million of additional equity through a combination of managed funds and its Direct Investment Mandate clients, according to CEFC.
Oliver Yates , CEFC CEO, said: “ We expect this transaction will play an important role in catalysing new finance to help close that gap and accelerate our overall renewable energy capacity. Traditionally, institutional investors have tended to buy into built infrastructure projects.
“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.”
In addition to its Direct Mandates, Palisade has also announced the launching of a pooled renewable energy fund called Palisade’s Renewable Energy Fund (PREF) in the second half of 2016, aimed at providing a broader range of investors with access to investments in renewable energy.
Palisade is an independent infrastructure manager that provides institutional investors with access to Australian infrastructure projects through tailored portfolios and co-mingled funds.
CEFC has been established under the Australian government with the aim to overcome market barriers and mobilise investment in renewable energy, energy efficiency and low emissions technologies.