The Clean Energy Finance Corporation (CEFC) and Palisade Investment Partners (Palisade) have unveiled a new strategy, which intends to speed up the development of Australian renewable energy projects valued at A$1bn ($770m).
Under the investment strategy, CEFC will initially allocate about A$100m ($77m) of equity.
Palisade will contribute A$400m ($308m) of additional equity via a mix of managed funds and direct investment mandate clients such as VicSuper, LGIAsuper and the Qantas Superannuation Plan.
National Australia Bank and Commonwealth Bank of Australia will provide debt financing for the renewable energy projects.
CEFC CEO Oliver Yates said: "Australia has a considerable funding gap in new investments in renewable energy if we are to meet the Renewable Energy Target.
"We expect this transaction will play an important role in catalysing new finance to help close that gap and accelerate our overall renewable energy capacity.
Palisafe Investment Partners CEO Roger Lloyd said: "This strategy is capable of initially developing up to 500MW in solar and wind generation projects throughout Australia.
"Considerable time has been invested in identifying projects to which to apply this funding. We see renewable energy investments fulfilling our investment criteria and delivering robust and sustainable cash flows, which are important to our investors."
Palisade currently manages two wind parks and is currently working on an expansion of one of them, financed by early adopters LGIAsuper and Qantas Super.
In the second half of this year, the company plans to launch a pooled renewable energy fund to offer a range of investors with access to investments in renewables.
Image: CEFC and Palisade draw major funds to support Australian renewable energy projects. Photo: courtesy of Anusorn P nachol/ FreeDigitalPhotos.net.