Renewable Energy Projects

Renewable Energy Projects

Investment challenge:

  • Renewable energy projects may be exposed to elements of uncontracted revenue or merchant risk, making it difficult to attract sufficient private sector capital for a project to proceed without NAIF

NAIF’s Value

  • NAIF can bring value to the financing of renewable energy projects by taking some elements of merchant risk, to assist in closing the financing gap and ‘crowding in’ the private sector
  • NAIF is able to take a long term view on energy markets. NAIF can provide ‘patient capital’ to ensure renewable projects with long term viability can proceed, even if they lack fully contracted revenue in the short term
  • NAIF is partnering with commercial and public sector finance providers considering a range of innovative debt structuring options to support these projects:

Public benefit:

  • Reduced reliance on fossil fuels
  • Growth in renewable energy brings benefits for communities, businesses and visitors including in more remote areas
  • Long term, reliable, affordable and low emission energy solutions for northern Australia
  • Reduces cost and inefficiency of transporting diesel fuel to remote areas