The Clean Energy Finance Corporation (CEFC) has access to $30.5 billion in capital from the Australian Government to catalyse the nation’s green transformation.
As noted in the corporation’s 2023-24 annual report, it has “evolved from an organisation with access to $10 billion in capital to one with $30.5 billion”.
This expanded scope involves distinct market segments: a $9.5 billion general portfolio, the $19 billion Rewiring the Nation Fund, and several specialised investment funds including the $1 billion Household Energy Upgrades Fund.
“Priorities have always been front of mind for us,” CEFC Chief Investment Officer – Renewables and Sustainable Finance, Monique Miller said.
“But formalising them in legislation with Australia’s 43 per cent emissions reduction target provided an opportunity to sharpen our focus. This timing coincided with our first successful decade of investing, so we took a fresh look at our strategic priorities.”
With flexible investment tools at their disposal, Miller outlines three clear priorities.
First is driving a cleaner energy transition towards net zero, including the 2023 capital allocation of $19billion for transmission investment via the Rewiring the Nation Fund, and long-duration storage to help deliver clean power to Australian homes and businesses.
The second priority, according to Miller, involves maximising the efficient use of energy and materials across sectors like the built environment and transportation.
“This means promoting energy efficiency and decarbonising transport, with a special focus on enhancing the interaction between customer-side solutions and the utility grid,” Miller said.
“A more dynamic customer-side response can help manage renewables on the grid at lower costs.”
For the third priority, Miller acknowledges a practical challenge.
“Despite all our efforts in energy and transport, there will likely remain hard-to-decarbonise sectors. Here, we aim to utilise land for carbon sequestration — whether through forests, agricultural practices, or even ocean-based initiatives,” she said.
The CEFC investment approach is guided by clear principles.
As a government-backed entity, its primary responsibility is to invest in projects with an expectation of returning taxpayer capital together with investment returns.
It recognises that technologies differ in terms of investment readiness, so it takes a portfolio approach, focusing on companies and innovations that demonstrate promise within its risk parameters.
This strategy has yielded impressive results.
“In 2023-24, each dollar we invested has attracted about four dollars in private capital,” Miller said.
According to the organisation, the commercial rigour of investments is reflected in the $5.2 billion received in lifetime repayments and returns from the private sector, capital that becomes available for re-investment upon receipt.
One major renewable energy project supported by the CEFC is the Golden Plains Wind Farm, which marks a major step toward decarbonising Australia’s energy grid.
As one of the largest wind projects in the country, with a total capacity of 1333 megawatts (MW), this initiative supports the National Electricity Market’s push for 82 per cent renewable energy by 2030.
By leveraging CEFC finance, Golden Plains is attracting significant commercial investment, which helps accelerate its development, showcasing the strategic CEFC role as a financial catalyst.
Once complete, Golden Plains will provide clean energy for over 750,000 homes, effectively replacing the supply of retiring coal plants.
Meanwhile, the CEFC’s $11.6 million investment in Siltrax’s hydrogen fuel cell technology is seen as paving the way for cleaner transport solutions.
Siltrax’s innovative use of silicon in bipolar plates – traditionally made from graphite or metal – enables lighter, thinner, and more efficient fuel cells with reduced production costs.
This approach not only enhances the power density and durability of fuel cells but also leverages existing silicon manufacturing processes, a significant cost-saving measure.
Targeting heavy-duty vehicles, the CEFC investment in Siltrax,’s hydrogen fuel cells aligns with Australia’s hydrogen roadmap and aims to address the transport sector’s emissions, which contribute 22 per cent of the nation’s greenhouse gases.
Miller also sees particular promise in the rapidly evolving battery storage sector,
“We’re very optimistic about the rapid progress in battery energy storage, especially over the past year,” she said.
“Not long ago, AEMO’s Integrated System Plan projected minimal new battery storage by 2030. However, year by year, the deployment of batteries has far exceeded those initial expectations.”
As the CEFC observes in its latest annual report, the energy transition represents a seismic shift in the Australian and global economic environment, similar in scale and impact to the industrial revolution.
While investment activity in 2023-24 faced headwinds from high interest rates, geopolitical uncertainty, and supply chain disruptions, the CEFC expects market activity to pick up in 2024-25, despite ongoing challenges.
Looking toward Australia’s export potential in renewable energy sector, Miller identifies unique advantages.
“Australia has a unique combination of natural resources, land availability, and a stable political environment — an attractive proposition for major international buyers who lack these resources,” she said.
While acknowledging current economic gaps in green hydrogen exports, she notes that government initiatives like the Hydrogen Headstart Program are working to bridge these gaps.
Transport electrification presents another significant opportunity.
“The average EV battery could power a typical household for about four days, presenting a potential to enhance grid resilience if we can integrate fleet or home-based charging infrastructure,” she said.
This shift, she notes, requires careful management of charging locations and timing by grid operators.
For Australia’s solar future, Miller expresses particular enthusiasm.
“There’s been significant progress in solar technology, particularly from research at UNSW, which has influenced roughly 70 per cent of solar panels globally,” she said.
“I’d love to see more Australian research and expertise commercialised, especially in solar. Lowering solar energy costs will be vital to accelerating the energy transition.”
This article is featured in the December edition of ecogeneration.
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