By Michele Muscillo, Partner and Gavin Batcheler, Senior
Up to $10 billion will be invested in renewable energy, low
emissions and energy-efficient technologies under the Clean
Energy Finance Corporation Bill 2012, passed by the Senate
late last month.
The Bill establishes the Clean Energy Finance Corporation, which
will invest in renewable projects from 1 July 2013 until 2017.
Companies engaging in renewable energy projects will be able to
apply for funding from the Corporation, which will focus on
renewable energy using hybrid technologies or low-emissions
Here, partner Michele Muscillo and senior associate Gavin
Batcheler outline the Clean Energy Finance Corporation's focus
and criteria for funding.
The Clean Energy Finance Corporation will focus on renewable
and low-emissions/efficient energy, including power produced
through solar, wind, hydro, wave, geothermal, biomass and biofuel
The Corporation will take into account the size and
non-financial benefit of the project when assessing
There will be separate funding streams for renewable energy
sources and low-emission/energy-efficient technologies.
Anticipated funding criteria
While no strict funding criteria have been announced so far, the
Clean Energy Finance Corporation will take into consideration:
the non-financial benefit the project will have - in
particular, the research and development of technology; and
the size of the project, with larger projects appearing to have
Funding will be assessed in two separate streams:
Renewable energy sources
Renewable energy sources
A technology must be 'renewable energy' within the
meaning of the Australian Renewable Energy Act 2011 -
either a 'hybrid technology' or a technology which relates
to or enables renewable energy technologies.
Established technologies such as wind farms are included in this
definition, as are storage technologies and infrastructure
supporting renewable energy projects, such as transmission lines
and interconnectors. However, carbon capture and storage technology
and nuclear power are ineligible for funding.
Emissions of technologies must be at or below 50 percent of the
emissions intensity of the electricity grid to be eligible for
funding. In addition, a project may be more likely to receive
funding if the primary purpose of capital expenditure is energy
This legal update is an overview of existing eligible project activities and new project types proposed to be developed.
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