CEFC teams with Colonial First State Global Asset Management for $580m fund to invest in commercial solar PV leasing and other large scale renewable projects.
The Clean Energy Finance Corporation says it has teamed with Colonial First State Global Asset Management to create Australia’s first unlisted clean energy, direct infrastructure investment platform that could boast capital of up to $580 million within five years.
The CEFC will provide up to $80 million as cornerstone investor, with Colonial First State to raise a further $300-$500 million.
The fund will focus on commercial-scale solar PV and leasing for shopping centres and other commercial sites, as well as energy efficiency and other large scale renewable energy projects, including green field developments and mature operating assets. It comes as the CEFC separately announces $120 million in funds to accelerate the move to solar leasing and power purchase agreement models, including with US solar giant SunEdison.
CEFC chief executive Oliver Yates said it will be the first unlisted direct infrastructure investment vehicle that is solely focused on clean energy investment, and will help develop a new asset class in Australia.
“We want to make sure that there are pools of capital in the market. We are keen to see other funds spring up. Hopefully this will be a catalyst,” he told RenewEconomy in an interview.
Yates says the move will expand financing options for the sector, and should encourage other superannuation funds and institutional investors to enter the market for low emissions and sustainable investments.
“(This fund) will help meet the needs of these investors and the growing interest from superannuation fund members in socially responsible investment (SRI) investments,” he said.
“By providing a new investment option for superannuation funds and other institutional investors, the Fund will attract new sources of investment in renewable energy, unlocking new sources of capital for the market and expanding the investor base for this sector.”
The CEFC says investors are increasingly recognising that reducing the emissions exposures in their portfolios is a strategic investment priority, and there has been a growing interest by institutional investors in investments that reduce their exposure to climate change.
“Australian superannuation funds have been increasing their investment in infrastructure over the last decade and have an estimated $40 to $65 billion now invested in the sector,” he said in a statement.
“At the same time, a growing number of these funds and their members want to invest in the clean energy and new energy efficient technology sectors to take advantage of their strong growth and future potential. ”
CFSGAM and First State Investments collectively manage over $171.7 billion on behalf of institutional investors, pension funds, wholesale distributors and platforms, financial planners and their clients worldwide.
Australian superannuation funds and other institutional investors have expressed interest in finding an attractive way to invest directly into low carbon energy infrastructure,” said Perry Clausen , head of Direct Infrastructure, Colonial First State Global Asset Management.
“The CEFC cornerstone investment is a first step in establishing a unique clean energy platform and working with those institutional investors in achieving their investment objectives.“
