NSW RENEWABLE ENERGY INVESTMENT BRIEFING

2. NSW RENEWABLE ENERGY
INVESTMENT BRIEFING
MAY 2016
Tristan Knowles
Associate Director,
State Lead for NSW
The CEFC, NSW
and your project
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About the Clean Energy Finance Corporation
● Independent, Australian Government institution that
operates like a traditional financier
● Private sector expertise with public purpose
● Access to AUD 10 billion by July 2017
● Commercial return on investment (debt or equity)
● Projects that are smaller, more complex or new to the
Australian market
● Operates as a co-financier to encourage participation
in the sector from private sector financiers
Driving productivity gains, lowering energy costs and reducing emissions

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Our strategic framework

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The CEFC in NSW
PORTFOLIO PIPELINE
13 direct projects totalling
$245m of investment
commitments towards projects
with a total value of more than
$820m
44 projects across renewables
and energy efficiency
Seeking $1.2bn in CEFC finance
towards projects with a total
value of over $5bn
25 predominantly large-scale
renewable energy projects
Over 200 projects or assets
and more than $30 million in
finance through clean energy
co-finance and aggregation
programs
At end of Q1 2016

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Factors we look at when assessing projects
Risk factor Project A Project B
Equity Substantial equity from quality sponsor, with
ability to deploy contingent equity in case of
cost overruns
Non-investment grade equity sponsor e.g. high net worth
where balance sheet/exposure appetite can only
accommodate initial project cost assumptions
Revenue:
Price
Guaranteed long-term customer
e.g. 10+yr contracted offtake from
creditworthy counterparty
Intention to take merchant exposure for full project term
Revenue:
Generation
Conservative generation assumptions,
consistent with observed capacity factor of
equipment and best available weather data
Unsupported assumptions of high capacity factor, higher
than observed solar resources, lack of close-to-site weather
data
Technology “Tier 1” technology providers with strong
balance sheets, long term warranties (available
to Project Co), limited risks identified in
independent technical due diligence
Small/new technology providers, higher risk technology
elements, short term warranties, due diligence concerns on
technology risk.
Construction Fixed price, fixed time EPC with LD regime with
significant balance sheet
Non-fixed price or fixed time contract, project company
minimising costs through multiple contracts, no clear single
“guarantee” for construction and generation delivery
O&M Experienced operator with significant balance
sheet
No experience

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Key contacts at the CEFC
Wind: Bobby Vidakovic (Syd)
bobby.vidakovic@cleanenergyfinancecorp.com.au
Solar, grid and storage: Simon Brooker (Syd)
simon.brooker@cleanenergyfinancecorp.com.au
Bioenergy: Henry Anning (Bris)
henry.anning@cleanenergyfinancecorp.com.au
NSW projects: Tristan Knowles (Syd)
tristan.knowles@cleanenergyfinancecorp.com.au
Ph. 1300 002 332

8. Contact us Clean Energy Finance Corporation
Suite 1702, 1 Bligh Street, Sydney NSW 2000
Telephone
1300 00 2332
1300 00 CEFC
www.cleanenergyfinancecorp.com.au
contact@cleanenergyfinancecorp.com.au