A $250 million program has been introduced to encourage Australian councils to invest in clean technologies to reduce their energy bills and lower emissions.
The Clean Energy Finance Corporation (CEFC) Local Government Finance Program is designed to provide flexible and competitive fixed-rate, long-term finance to Australian councils.
CEFC’s Executive Director Corporate and Project Finance Paul McCartney said that with Australian councils under continued pressure to effectively and efficiently manage their operations, there are compelling reasons to manage their energy use.
“We see strong potential for operational savings through a range of renewable energy, energy efficient and low emissions technologies. This program will provide councils with access to finance to help accelerate the adoption of these improvements,” McCartney says.
Key elements of the CEFC Local Government Finance Program include:
1. Finance for eligible projects across renewable energy, energy efficient and low emissions technologies
2. Loans of at least $10 millions for a single project or package of works
3. Finance that can be drawn over three years
4. There is also the ability for multiple councils to enter into joint financing agreements for eligible projects
5. Access to competitive fixed-rate longer-dated senior debt
6. A straightforward approval process with simple loan documentation.
The program will support major investment activities across a range of eligible projects, already seen with the City of Melbourne receiving a $30 million loan to replace 16,000 streetlights with energy efficient LED luminaries within two or three years.
McCartney says that the CEFC has identified how councils can generate energy by reusing landfill waste.
“We’ll also be speaking with councils about improving air conditioning, installing smart controls and voltage optimizers to improve the energy efficiency and performance of their buildings,” he adds.
The program builds from the CEFC’s experience working with local government, such as a new $30 million program of clean energy initiatives to help the
City of Melbourne reach its goal of zero net emissions by 2020.
McCartney highlights that local councils in Australia spend a total of over $32 billion annually on housing and community amenities, as a well as transport and communications infrastructure, the CEFC can help manage these costs with financing solutions. For example, reducing energy consumption in high use areas such as leisure and aquatic centers and accessing fleet financing to enable to council’s conversion to electric vehicles.
McCartney says that “in a period of historically low interest rates, now is the time for councils to act to reduce energy costs and lock in the long term benefits of energy efficiency.”
“Because these investments lead to lower energy use, councils can reduce their ongoing operating costs. These savings may be sufficient for councils to repay the loan without impacting their net cash flows,” McCartney adds.
For more information, visit the
CEFC’s website.