Clean Energy Finance Corporation tips in first $100m for NSW transmission build

The investment is designed to accelerate the build out of high voltage poles and wires in NSW, much needed if Australia’s largest state is to meet its energy transition goals.

The Clean Energy Finance Corporation has made its first investment into the landmark Rewiring the Nation Fund, tipping in $100m to accelerate the build-out of transmission in NSW.

The investment of the CEFC comes as Australia struggles to meet its ambitious renewable energy target, with a lack of high voltage transmission a major bottleneck to new zero emission generation projects materialising.

Some 100,000KM of transmission will need to be built, but new developments have been stalled by local community opposition, despite large financial sweeteners offered by Australian state governments.

The Albanese government has moved to accelerate work, pledging to spend $20bn via the CEFC to progress projects such as the HumeLink, which will run from the Snowy 2.0 pumped hydro project to near Goulburn, and the New England Transmission project-which is earmarked to unlock a plethora of new renewable energy generation.

CEFC chief executive Ian Learmonth said the first NSW spend from the agency will have substantial benefits for the state.

“This capital injection will help deliver considerable benefits for NSW, underpinning regional investment as well as substantial new flows of clean energy,” said Mr Learmonth.

“It will also make a positive impact on the achievement of Australia’s important decarbonisation ambitions.”

The prospect of an acceleration of transmission lines in NSW will be welcomed by developers and officials, who are under growing pressure to deliver Australia’s target of having renewable energy generate 82 per cent of the country’s electricity by 2030.

The target has incentivised many developers to establish new projects, but many projects remain on the sidelines as developers await confirmation that they will be able to connect into the grid.

The $100m will flow to the Scheme Financial Vehicle, which is the intermediary for transmission in NSW – acting a de facto offtake to projects.

The CEFC investment provides the SFV with a liquidity facility to support cash flow as infrastructure projects are advanced.

Mr Learmonth said the investment underscores the vital role played by the CEFC in unlocking critical infrastructure that would otherwise struggle to secure funding.

“Rebuilding our energy system is a large and complex task, with infrastructure projects requiring considerable capital, expertise and time to bring online,” he 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.”