CEFC focuses on grid after spending record 1.2bn on renewables
The Clean Energy Finance Corporation (CEFC) has spent a record $1.2 billion on renewables in the last financial year.
But its focus in coming years will be on upgrading the grid – powered by federal government funding that will triple its size.
Last financial year the CEFC committed a total of $1.9 billion for transactions with a total value of $11.7 billion. Since it was created, it has committed $12.7 billion, and a total transaction value of $48.8 billion.
The biggest spending component was in wind, solar and storage, with $1.2 billion allocated to 14 large scale projects.
The capital costs of wind, solar and storage jumped significantly in the last two years due to supply constraints - a result of c Covid-19 restrictions, Russia’s invasion of Ukraine, labour shortages, and soaring fossil fuel prices.
That has now started to moderate. Solar costs are falling to pre-Covid levels, wind costs plateaued, and battery costs going down as the price of minerals like lithium fall.
One of the most successful investments has been the massive Golden Plains wind project in Victoria, which the CEFC committed $175 million – its biggest ever in a wind project.
Now the CEFC's main focus will be on transmission projects, and boosting the grid through Rewiring the Nation funding, which at $19 billion will effectively triple its size.
Many of these transmission projects have been criticised – some because of disputes about value to the grid, others over social licence.
It's an issue eagerly whipped up by renewable contrarians, but which also reflects community concerns.