Rewiring the Nation Fund
Rewiring the Nation is set to deliver substantial investment and economic benefits across Australia, backing the clean energy network of the future.
Rewiring the Nation will enable the electrification of our economy using our abundant low-cost solar and wind resources.
Through the specialist 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.
RTN Fund investments will see up to $19 billion in CEFC capital help accelerate the benefits of grid transformation to consumers, including helping to lower consumer energy costs. RTN Fund investments reflect the commercial rigour of the well-established CEFC investment approach.
Our changing energy network
Australia is experiencing considerable changes in the way we produce and consume electricity, with the rapid exit of coal generation having profound implications for our energy system. The Australian Energy Market Operator forecasts the progressive closure of Australia’s remaining coal-fired power stations with up to 90 per cent of today's capacity closed by 2035 and all before 2040, requiring new investment in generation, storage and transmission.
At the same time, energy consumption from the grid is forecast to nearly double by 2050, to support economic and population growth alongside widespread electrification, from electric vehicles to homes and industrial processes. Grids will also increasingly facilitate a two‑way flow of electricity as the role of consumer energy resources and demand-side participation grows.
Capital intensive task
Grid and transmission infrastructure projects require substantial capital, expertise and time to bring online. For investors, these challenges are further compounded by macroeconomic factors, including global uncertainty and supply chain disruptions. As just one of many nations undergoing an energy transformation, Australia is in a race for capital, equipment and expertise.
The CEFC has a strong track record in facilitating difficult transactions, with experience vital to the success of grid modernisation, where financial barriers to investment reflect a complex regulatory environment, involving both private sector and government-owned operators.
The RTN Fund can invest at scale and across the capital structure, with finance for both regulated and non-regulated businesses and/or projects. CEFC capital can also be co-invested alongside private and public sector participants.
Eligible investments
The RTN Fund has a national focus, with RTN-related investments expected to lower Australia’s emissions by enabling the transition of our energy system to one based on at least 82 per cent renewables.
Eligible investments include:
- Priority transmission projects identified by AEMO and other transmission network authorities across multiple Australian grids: including the National Energy Market, and the Western Australian and Northern Territory grids.
- Opportunities to enhance benefits to electricity consumers, including additional renewable energy generation facilitated by RTN investments. Long-duration grid storage and enhanced electricity distribution network.
- Measures to strengthen the security, reliability and affordability of the grid, including demand management resources.
- Enhancements to grid infrastructure to support a hydrogen hub or offshore electricity project.
READ OUR INSIGHT
Powering towards our net zero economy
Read our Investment Insight which provides insights into the operation of the RTN Fund and the role of the CEFC in addressing the financing barriers to Australia’s clean energy transition.
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