The Clean Energy Finance Corporation (CEFC) and Palisade Investment Partners have announced a new investment strategy to initially develop up to 500MW of solar and wind generation projects in Australia.
Palisade plans to build a portfolio of renewable energy projects in excess of A$1bn ($769m).
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By GlobalDataThrough this strategy, CEFC and Palisade will attract investors at an earlier stage of project development in a bid to accelerate construction of commercially viable assets.
CEFC will provide up to $100m of equity, while Palisade will commit up to $400m of additional equity through a combination of managed funds and its Direct Investment Mandate clients.
National Australia Bank and Commonwealth Bank will also provide debt financing for these renewable energy projects.
CEFC CEO Oliver Yates said: "Australia has a considerable funding gap in new investments in renewable energy if we are to meet the renewable energy target.
"We expect this transaction will play an important role in catalysing new finance to help close that gap and accelerate our overall renewable energy capacity."
Palisade currently manages two wind farms and is currently working to expand one of these, funded by early adopters LGIAsuper and Qantas Super.
It will also launch a pooled renewable energy fund, Palisade’s Renewable Energy Fund, in the second half of this year to provide a broader range of investors with access to investments in renewable energy.
CEFC is also offering $8m in financing to Australian wind energy development company Windlab.
With this financing, Windlab will have additional access to working capital as it seeks to expand its business.