A $250 million program from the Clean Energy Finance Corporation (CEFC) is expected to boost Australian councils’ investment in clean technologies, which will in turn reduce their energy bills and lower emissions.
The CEFC Local Government Finance Program is designed to provide flexible and competitive fixed rate, long-term finance tailored to the needs of Australian councils.
Key elements of the program include:
- finance for eligible projects across renewable energy, energy efficiency and low emissions technologies, which can be drawn over three years
- loans of at least $10 million for a single project or package of works
- the ability for multiple councils to enter into joint financing agreements for eligible projects
- access to competitive fixed rate longer-dated senior debt, up to ten years
- a straightforward approval process with simple loan documentation.
Paul McCartney, CEFC Executive Director of Corporate and Project Finance, said there are reasons compelling Australian councils to take proactive steps to manage their energy use.
“Australia-wide, councils are under continued pressure to effectively and efficiently manage their operations,” Mr McCartney said.
“Local governments across Australia administer a vast network of street lights, community centres, libraries, sport and recreation facilities, and other public access buildings,” he added.
Mr McCartney said he saw strong potential for operational savings through a range of renewable energy, energy efficiency and low emissions technologies.
“This program will support major investment activities across a range of eligible projects. For example, there are clear benefits to councils from converting street lighting to more efficient LED lighting, as well as installing rooftop solar PV on council-owned buildings.
“The CEFC has identified energy from waste projects as an area where councils can generate energy by reusing landfill waste. We’ll also be speaking with councils about improving air-conditioning [as well as] installing smart controls and voltage optimisers to improve the energy efficiency and performance of their buildings.”
Mr McCartney said the current period of “historically low” interest rates means it is the optimum time for councils to reduce energy costs and lock in the long-term benefits of energy efficiency.
