The Clean Energy Finance Corporation (CEFC) and Palisade Investment Partners have joined forces to jointly fund A$1bn ($769m) for the development of solar and wind generation projects in Australia.
As part of this effort, Palisade will build a portfolio of renewable energy plants based on investment mandates agreed with the CEFC and other major investors.
The new investment strategy will initially support the development of up to 500MW of solar and wind generation projects.
CEFC will provide up to $100m of equity, while Palisade will contribute additional $400m equity through a combination of managed funds and its Direct Investment Mandate clients.
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."
CEFC, along with Palisade, will attract investors at an earlier stage of project development in a bid to accelerate the construction of commercially-viable projects.
The renewable energy projects will also be backed by debt financing from the National Australia Bank and Commonwealth Bank.
Palisade Investment Partners CEO Roger Lloyd said: "Palisade is well placed to work with our investors and partners to identify and commit to eligible renewable energy projects which can make a substantial contribution to Australia’s clean energy capacity."
Separately, Palisade is planning to expand its existing two wind farms. The expansion project will be funded by early adopters LGIAsuper and Qantas Super.
Palisade is also planning to launch a pooled renewable energy fund, Palisade’s Renewable Energy Fund, in the second half of this year to provide a broader range of investors with access to investments in renewable energy.
Recently, CEFC said it is offering $8m in financing to Australian wind energy development company Windlab to help drive renewable energy in Australia and overseas.
Image: Clean Energy Finance and Palisade will initially provide funding for 500MW of solar and wind generation projects in Australia. Photo: courtesy of Naypong/ FreeDigitalPhotos.net.