Clean Energy Finance Corporation: Tony Abbott defends decision to axe wind, solar from renewables spending

Extract from ABC News

By political reporter Anna Henderson

Updated 24 minutes ago

Photo: Tony Abbott says he wants to abolish the clean energy fund (AAP: Alan Porritt)

Related Story: Cut to renewables spending sends 'chill down spines' of investors

Prime Minister Tony Abbott says it is "no secret" he wants the $10 billion Clean Energy Finance Corporation (CEFC) abolished, but while it is still in place it should be as useful as possible.

The Opposition and the Greens have accused the Government of trying to get rid of the authority by stealth, by issuing a new directive to stop the CEFC from investing in wind farms and household rooftop solar projects.
But Mr Abbott says it is not useful for the CEFC to invest in established technologies that can easily attract private funding.
"The best thing that the Clean Energy Finance Corporation can do is invest in new and emerging technologies, the things that might not otherwise get finance," he said.
"That's why we've got this draft direction there."
The Government has twice tried and failed to win parliamentary support to shut down the statutory authority, and Mr Abbott has previously described the wind turbines as "visually awful".

What is the CEFC?

• The CEFC was set up by the Gillard government in 2012.
• It mobilises capital investment in renewable energy, low-emission technology and energy efficiency in Australia.
• The corporation operates like a traditional financer, working with co-financers and project proponents to seek ways to secure financing solutions for the clean energy sector.
• It focuses on projects and technologies at the later stages of development which have a positive expected rate of return. 
• As at June 30 last year, the CEFC had contracted investments of over $900 million in projects with a total value of over $3 billion.

The directive on wind and solar stems from the deal the Government struck with crossbench senators earlier this year to reduce the Renewable Energy Target.
Part of that agreement said the government would write to the CEFC to ensure "significantly" increased uptake of large-scale solar, emerging renewable technologies and energy efficiency.
The Australian Wind Alliance says the Prime Minister is wrong to say private investors no longer need the CEFC in the wind and solar industries.
"They're still tentative when it comes to investment across the full range of renewable technologies, including wind farms," Alliance national coordinator Andrew Bray said.
"There is still a role for the Clean Energy Finance Corporation to help facilitate that investment."
Federal Labor frontbencher Andrew Leigh has ridiculed the Government's position.
"If all the CEFC can do is collect the methane from farting cows, it's not going to produce a return 3 per cent above the Government bond rate," he told Sky News.

More to come.