Infradebt to invest USD 37m from CEFC in smaller-scale renewables
Solar panels in New South Wales. Image by NSW Department of Planning and Environment (www.planning.nsw.gov.au/).
Australian fund manager Infradebt Pty Ltd is to invest up to AUD 50 million (USD 37m/EUR 34m) provided by the Clean Energy Finance Corp (CEFC) into renewable projects with a capacity of less than 25 MW.
The debt finance provided by CEFC will lift Infradebt's committed discretionary capital to about AUD 150 million, with the potential to invest in new renewable power developments with a total capacity of over 100 MW, according to the statement. The capital will be invested through the infrastructure debt fund Infradebt Ethical Fund.
Smaller projects cover less land and can be developed closer to regional communities to meet their power demand. It is also easier to integrate such facilities into the power grid, CEFC CEO Ian Learmonth said. Meanwhile, such projects find it harder to secure institutional investment than larger-scale developments, he noted.
The first projects benefiting from the financing are 5-MW solar parks at Trundle Hill and Peak Hill in New South Wales, which are already under construction. Once operational, each of the projects will produce 28,000 MWh of power annually .