The Clean Energy Finance Corporation has made its first investment under the $19 billion Rewiring the Nation program, with $100 million for what amounts to a cash kitty to smooth the way for the NSW roadmap to boost renewables and quit coal.
The $100 million loan will be made available to a NSW government vehicle that acts as a counter-party to the contracts being written with new renewable and storage projects, and supporting the rollout of infrastructure such as renewable energy zones and the Waratah Super Battery.
The money will be there to fill in any gaps created in the wait for regulatory approval, and to ensure that there are no blockages on interim finance.
The Rewiring the Nation program (RTN) is one of the federal Labor government’s signature initiatives to support the target of reaching 82 per cent renewables by 2030, a goal that is looking increasingly difficult given the blockages in transmission investment, connection delays and other problems
The focus on NSW is significant, given that it face possibly the hardest task over the coming decade, ensuring that enough wind, solar and storage is available to fill in the gaps created by the expected retirement of its most of its remaining coal generators, starting off with Eraring as early as August, 2025.
The NSW government is currently conducting multiple tenders for new renewable and storage projects, and construction has also begun on the massive 1680 MWh Waratah Super Battery, one of the essential projects needed to provide reliability to the grid in the absence of Eraring.
“We are delighted to have been able to move quickly to deliver our first investment through the RTN Fund,” CEFC chief executive office Ian Learmonth said in a statement.
“This capital injection will help deliver considerable benefits for NSW, underpinning regional investment as well as substantial new flows of clean energy. It will also make a positive impact on the achievement of Australia’s important decarbonisation ambitions.”
NSW aims to have another 12 GW of additional renewable energy generation and 2 GW of new long- duration storage (defined as at least eight hours storage) by 2030.
Key to that goal are the various contracts, such as LTESAs (long term energy supply agreements) and other infrastructure contracts for new renewable projects and access to the five newly created renewable energy zones. The CEFC says its loan will provide liquidity to support the cash flow of those projects.
“Rebuilding our energy system is a large and complex task, with infrastructure projects requiring considerable capital, expertise and time to bring online,” Learmonth said.
“As a specialist financier, we are able to use our capital to support investment flows through to project delivery and revenue generation, providing confidence to the market and private sector investors.”
The Rewiring the Nation program will also provide funding for the Integrated System Plan transmission projects, and support long duration storage and upgrades of the distribution network and support for distributed, or consumer, energy resources such as rooftop solar, battery storage, demand management and EVs.
This investment is over and above the commitments already made by the CEFC, totalling more than $580 million, in supporting the Project EnergyConnect transmission link from South Australia to NSW, the Southern Downs Renewable Energy Zoner.
It also has given more direct funding support to a variety of battery storage projects, including the Victorian Big Battery, the expansion of the Hornsdale Power Reserve in South Australia, the Capital Battery in the ACT and the Waratah Super Battery in NSW.
