Australia’s Clean Energy Finance Corporation (CEFC) has announced its single largest investment.

The authority says it will provide up to $295 million in capital to develop essential grid infrastructure to unlock renewable energy projects across three states.

The CEFC commitment is part of Project EnergyConnect (PEC), a vital piece of energy infrastructure spanning more than 900 kilometres. It is part of the delivery of the Australian Energy Market Operator’s (AEMO) 2020 Integrated System Plan (ISP).

PEC is the second CEFC investment in major electricity grid infrastructure in less than six months, following its $125 million investment backing of Snowy 2.0 grid needs.

The CEFC investment in PEC will see TransGrid build the NSW portion of the new 330 kV interconnector connecting the energy grids of NSW and SA, with an additional link to North West Victoria. ElectraNet is constructing the SA portion of PEC. 

AEMO forecasts that PEC will unlock as much as 1,800 MW of renewable energy generation across Renewable Energy Zones, including approximately 800 MW in SA, 400 MW in NSW and 600 MW in Victoria. 

“Project EnergyConnect reflects our strong focus on investing in essential grid augmentation as part of Australia’s important renewable energy transition,” says CEFC chief Ian Learmonth. 

“We see exciting investment opportunities in energy transmission, interconnectors, renewable energy zones, pumped hydro, grid-scale battery storage and green hydrogen.

“These assets can all play a critical role in the accelerated decarbonisation of our electricity grid, delivering a cleaner and more reliable energy system which takes advantage of our world leading renewable energy resources. We are also pleased to see our finance playing such a key role in delivery of the ISP.”