China cashing in on Chris Bowen’s flagship renewables scheme

At least five foreign governments – including China, Qatar, and the UAE – are invested in Capacity Investment Scheme-backed renewable energy projects, it can be revealed.

CCP-controlled China Three Gorges is the largest shareholder in EDP Global. Picture: Damian Shaw

• Analysis: Questions abound over green scheme

The Chinese Government is the biggest investor in a renewable energy developer handed taxpayer-funded support under Chris Bowen’s flagship $73bn Capacity Investment Scheme, with Beijing one of at least five foreign governments cashing in on the policy.

The Daily Telegraph can reveal CCP-controlled China Three Gorges is the largest shareholder in EDP Global, whose subsidiary has received CIS backing for two projects – the Punchs Creek Solar Farm in Toowoomba and the Merino Solar Farm near Goulburn.

It comes after The Sunday Telegraph revealed Pacific Blue – a renewable energy developer wholly owned by the Chinese Government – was given CIS backing for its Clements Gap battery project in South Australia.

According to global ratings agency Fitch, China Three Gorges is a “backbone state-owned enterprise” which is 90 per cent owned by the Chinese Government’s State-Owned Assets Supervision and Administration Commission.

EDP Global’s website shows China Three Gorges – which is an active supporter of the CCP’s Belt and Road Initiative – is the single largest shareholder in the company, controlling 21.4 per cent of stock. Spanish investment company Oppidum Capital holds 6.8 per cent of EDP Global stock, with US giant BlackRock holding 6 per cent.

At least four other foreign governments – Qatar, the United Arab Emirates, Malaysia, and France – are significantly invested in CIS-backed renewable energy projects, either through state-owned enterprises or sovereign wealth funds.

Chris Bowen during Question Time at Parliament House in Canberra. Picture: Martin Ollman

Qatar, through the Qatar Investment Authority, is the largest shareholder in Spanish power company Iberdrola, which is behind the CIS-backed Smithfield Battery Energy Storage System – located in McMahon, the Western Sydney electorate held by Climate Change Energy Minister Mr Bowen.

The United Arab Emirates – through the Abu Dhabi Investment Authority – is a major shareholder in Equis, which is behind four CIS-backed projects.

The $73bn CIS underwrites investment in clean energy by providing long term “floor and ceiling” revenue support contracts to renewable energy projects. If a project’s revenue falls below the floor, taxpayers make up the difference.

Coalition energy spokesman Dan Tehan hit out at the “deplorable” lack of transparency around the CIS.

The Coalition’s energy spokesman Dan Tehan says there is a “deplorable” lack of transparency around the Capacity Investment Scheme.

“The lack of transparency around this program, which is putting taxpayers’ dollars at risk, is appalling. It is deplorable”, Mr Tehan told The Daily Telegraph.

“What I would say to Chris Bowen is: what are you hiding? Is your energy mess so big that you are putting taxpayer dollars at risk because you are so desperate to get energy into the grid?”

An EDP spokeswoman said the company had “a diversified shareholder base with a strong presence of long-term investors which include sovereign wealth funds and pension funds”.

“China Three Gorges is represented on our non-executive board but does not participate in the company’s executive management,” she said.

In response to questions put to Mr Bowen by The Daily Telegraph, a government spokeswoman said Australia welcomed foreign investment from all countries “in line with our national interest”.

“Foreign investors in Australian energy infrastructure are subject to scrutiny through our foreign investment framework to ensure they are in the national interest – CIS projects are no exception”, the spokeswoman said.

“This includes both proposals to establish new businesses and acquisition of existing businesses.”

Originally published as China cashing in on Chris Bowen’s flagship renewables scheme