CEFC Powers Australia's Clean Energy Superhighway with Record $2 Billion Investment

The Clean Energy Finance Corporation (CEFC), the federal government’s green bank, has closed out 2024 with its largest-ever financial commitment: a record-breaking $1.92 billion investment to boost Australia’s clean energy transmission infrastructure. This bold move supports key projects that aim to build a “superhighway” for renewable energy, ensuring low-cost, low-emissions electricity for future generations.

The CEFC’s historic investment will fast-track the HumeLink project and the New South Wales section of the Victoria-NSW Interconnector (VNI West). A mix of concessional senior debt and subordinated notes, the funding is structured to attract private sector investment and includes $140 million previously committed to VNI West.

HumeLink, a $4.8 billion project, will deliver 365km of high-voltage transmission lines connecting Wagga Wagga, Bannaby, and Maragle. Alongside VNI West, these projects are critical to linking Snowy Hydro 2.0’s long-duration storage and enabling an additional 2,570 MW of renewable energy generation in southwestern NSW.

“HumeLink and VNI West are vital to Australia’s clean energy future,” said CEFC CEO Ian Learmonth. “These projects will help deliver low-cost clean energy to users while minimizing project costs passed on to consumers.”

Despite its promise, HumeLink has faced criticism over its escalating costs, which have ballooned from initial estimates of $1 billion to $4.8 billion. Critics argue the costs should be borne by primary beneficiaries like Snowy 2.0 and renewable energy developers rather than NSW consumers.

Concerns also remain about the project’s capacity. Some experts believe HumeLink is undersized and incapable of accommodating Snowy 2.0, future wind and solar farms in southwestern NSW, and interstate energy transfers simultaneously.

The challenges of managing transmission costs were underscored by the Marinus Link project, an undersea cable connecting Tasmania to the mainland. Developers recently announced a 17% cost increase for Stage 1, bringing the total to $3.86 billion. Despite the rise, Marinus Link maintains its timeline, with construction slated to begin in 2026 and completion by 2030.

The CEFC’s bold investments reflect its decade-long expertise in renewable energy, with a renewed focus on transmission. “Just as we built investor confidence in solar and storage, we are now driving investment in critical transmission infrastructure,” Learmonth said.

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