The Albanese Government is helping more small and medium-sized renewable energy projects get built sooner with a $100 million investment through the Clean Energy Finance Corporation (CEFC) to support the development of up to 16 hybrid solar, battery storage and battery retrofit projects.
The CEFC is working with Infradebt to accelerate the rollout of these projects through the Distribution Connected Accelerator Program (DCAP).
DCAP is a new financing initiative aimed helping more renewable energy projects reach construction in 2027.
The initiative will mainly support projects up to 5 MW, such as smaller scale solar and battery hybrid projects while also allowing for larger projects where appropriate.
Projects of this size are typically large enough to power local communities and businesses while being small enough to connect to existing parts of the electricity network, helping them be delivered sooner.
These projects fill the gap between rooftop solar and large-scale renewable developments, helping deliver more clean, reliable and affordable energy and make better use of existing electricity network infrastructure, allowing more renewable energy to connect faster and at lower cost.
The initiative will reduce finance barriers by providing concessional senior debt, with Infradebt selecting applicants through a competitive process.
Many smaller projects struggle to secure finance despite being technically viable because traditional project finance is often geared towards larger developments.
This funding will improve access to capital, help projects get off the ground sooner and build a stronger pipeline of renewable generation connected to local electricity networks.
Over the past 13 years, Infradebt has financed more than 80 infrastructure projects, including over 40 distribution-connected renewable energy projects.
Working with the CEFC, Infradebt will help unlock the next wave of investment in renewable energy projects across Australia.
The DCAP builds on the CEFC's previous $150 million CEFC commitment to Infradebt.
Quotes attributable to Minister for Climate Change and Energy Chris Bowen
"Australians know about rooftop solar, and they know about big solar and wind farms. This investment backs the missing middle - projects that can be built faster, connect to local networks and help deliver cheaper, cleaner electricity.
"These projects make better use of the poles and wires we've already got, helping bring more renewable energy online without waiting for every major transmission project to be completed.
"This is about unlocking private investment, getting more projects built and delivering a more reliable electricity system while putting downward pressure on power bills."
