In a letter to CEFC, Australian Treasurer Joe Hockey and Finance Minister Mathias Cormann ordered CEFC to change its investment mandate, and invest in new and emerging technologies.

Australia Prime Minister Tony Abbott said: "It is our policy to abolish the CEFC because we think that if the projects stack up economically, there’s no reason why they can’t be supported in the usual way.

"But while the CEFC exists, what we believe it should be doing is investing in new and emerging technologies – certainly not existing wind farms."

However, CEFC said that the draft investment mandate does affect its existing investments and co-financing programs.

CEFC said in statement: "These and the CEFC’s investment activities, including development of new investment opportunities continues as previously, in line with the CEFC’s purpose and responsibilities."

The green bank is seeking advice prior to reverting to the government.

Last month, Australia has set a target to generate 33,000 gigawatt hours (GWh) power from large-scale renewable sources by 2020.

The decision is expected to pave way for investments worth more than A$10bn, reported Bloomberg.