Australia's Palisade Investment Partners and the Clean Energy Finance Corporation, the country’s renewables financier, have partnered to develop about A$1 billion ($765 million; €680 million) of renewable energy projects across the country.
Palisade is committing up to A$400 million of equity through a combination of managed funds and its direct investment mandate clients, while the CEFC is allocating up to A$100 million to the strategy.
Palisade’s direct investment mandate clients include some of the largest superannuation funds in the country, such as VicSuper, LGIAsuper and Qantas Super. National Australia Bank and Commonwealth Bank will work with the CEFC and Palisade to provide debt financing for up to 500MW of renewable energy projects.
In addition to the new strategy, the manager is also looking to launch a pooled renewable energy fund – Palisade's Renewable Energy fund – in the second half of 2016. The vehicle will provide a broader range of investors with access to renewable energy investments, Palisade said.
“Australia has a considerable funding gap in new investments in renewable energy if we are to meet the Renewable Energy Target,” said CEFC chief executive Oliver Yates. “We expect this transaction will play an important role in catalysing new finance to help close the gap and accelerate our overall renewable energy capacity.”
The new strategy aims to attract investors at an earlier stage of project development, in a bid to effectively accelerate the construction of commercially viable projects. The Renewable Energy Target wants to ensure that at least 20 percent of the country’s electricity supply will come from renewable sources by 2020.
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