RTN Fund backs clean energy superhighway
Record finance for two major energy infrastructure projects to connect millions of consumers to low emissions, low-cost renewable energy.
Up to $1.92 billion in CEFC finance for HumeLink, linking the Greater Sydney electricity load centre with the Snowy Mountains Hydroelectric Scheme, Energy Connect in south-west NSW and the NSW element of VNI West.
Critical
grid infrastructure
$1.9 billion
CEFC commitment
~$1 billion
economic benefits
In making this very substantial investment commitment, we have drawn on the considerable scale and specialist expertise developed in our first decade of investment across the economy. Just as we used our capital to build investor confidence in the growth of our large-scale solar and energy storage sectors, we are now extending that focus to the crucial area of transmission.Ian LearmonthCEO, CEFC
Our investment
The CEFC has committed up to $1.92 billion to enable the construction of a clean energy “superhighway” connecting millions of consumers to low emissions, low-cost renewable energy as Australia pushes toward net zero emissions by 2050.
The CEFC finance, via the $19 billion CEFC Rewiring the Nation (RTN) Fund, is backing developer Transgrid in delivery of two major energy infrastructure projects: HumeLink and the NSW element of the Victoria-NSW Interconnector (VNI West).
The CEFC commitment of up to $1.92 billion is a combination of concessional senior debt and subordinated notes, designed to attract additional private sector capital to the landmark project. It includes $140 million in CEFC debt finance previously provided to VNI West (NSW).
The final size of the CEFC commitment will be subject to market and other conditions as the project progresses.
HumeLink and VNI West
HumeLink and VNI West are vital parts of the clean energy solution. The nationally significant projects will help bring low-cost and low emissions clean energy to energy users in NSW and Victoria, with the CEFC finance helping reduce the level of project costs that may be passed on to consumers:
Key features
- HumeLink will link the Greater Sydney electricity load centre with the Snowy Mountains Hydroelectric Scheme (Snowy 2.0), Energy Connect in south-west NSW and the NSW element of VNI West
- It is expected to support some 1,800 jobs and deliver more than $1 billion in economic benefits, including local workforce and industry participation, as well as Indigenous procurement and participation
- The infrastructure will connect up to 2,000 MW of pumped storage to major population centres, securing energy reliability for more than three million households and businesses
- Transgrid modelling estimates the vast firming capacity supported by HumeLink will also enable the grid transmission of an additional 2,570 MW of renewable energy.
CEFC capital through the RTN Fund plays an essential role by providing innovative finance solutions for projects such as HumeLink and VNI West (NSW) to help network service providers overcome market headwinds, giving them the confidence to make substantial, long-term investment decisions.Paul McCartneyChief Investment Officer - Rewiring the Nation, CEFC
OUR IMPACT
Grid and transmission infrastructure
Through the specialist $19.5 billion RTN Fund, the CEFC is spearheading investment in transmission infrastructure, long-duration storage, electricity distribution network infrastructure and distributed energy resources – projects which will help Australia achieve net zero emissions by 2050.
The Australian Energy Market Operator (AEMO) forecasts the progressive closure of Australia’s remaining coal-fired power stations will see up to 90 per cent of today's capacity closed by 2035 and all before 2040, requiring new investment in generation, storage and transmission.
AEMO expects investment in transmission projects to be recouped while also saving consumers $18.5 billion in avoided costs and delivering emissions reductions valued at a further $3.3 billion. It also forecasts that building and maintaining energy infrastructure over the next 20 years will support more than 60,000 energy jobs.
RTN Fund commitments include:
- $490 million to the Central-West Orana Renewable Energy Zone
- $140 million to VNI West (NSW)
- $120 million to VNI West (Victoria)
- $100 million to the NSW Electricity Infrastructure Roadmap
I want to acknowledge the landowners, communities, local contractors, business owners and other stakeholders that we have worked with to prepare HumeLink and will continue to engage with throughout and after construction. We will continue to prioritise local employment, training and skills development to provide lasting community benefits, including investing more than $11 million directly into the community to provide enduring social legacy outcomes.Brett RedmanCEO, Transgrid
