"ARENA will continue to exist as a shell to manage existing projects funded by the grant scheme, but it will not be able to allocate new grant funding. Meanwhile the CEIF will only receive re-allocated funds from the Clean Energy Finance Corporation (CEFC)."
Which means the grants made for Ceto 6 and Garden Island Microgrid Project are locked in.
"This grant funding role is important because renewable energy does not compete on a level playing field, with our energy system designed for large centralised fossil fuel generators that were built using public money. In addition grants help to establish industries that are considered strategically useful for society and the economy and build a new skill and employment base.
Unfortunately grant funding will no longer be available under the CEIF, and its role will be to provide finance at a lower interest rate than the current CEFC. The CEFC requires a “rate of return” of 4% above the government bond rate (3%) providing an effective interest rate of 7%. The new CEIF will provide a lower threshold of 1% return for projects, providing an effective interest rate of 4%."
Which means that CWE should be able to borrow from the fund at a cheaper rate than they could from the CEFC.
CWE were fortunate to be able to make maximum use of grants from ARENA for Ceto R & D. They were doubly lucky if you add in the ATO tax refund for R & D (worth $12 million +), that is sitting in their account right now.
- See more at: https://www.greenleft.org.au/node/61443#sthash.vmOAru9G.dpuf
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