The Australian government took another step away from wind energy by banning investment in the renewable energy technology.
On June 24, government officials sent a letter to the Clean Energy Finance Corp. (CEFC) outlining the country's new investment priorities.
Prime Minister Tony Abbott reportedly said that the fund should be ‘investing in new and emerging technologies and certainly not existing wind farms.’ His government's policy is to eventually abolish the fund.
The CEFC says that the draft investment mandate does not impact on existing investments and co-financing programs.
Created under the Clean Energy Finance Corporation Act 2012, the CEFC invests using a commercial approach to overcome market barriers in renewable energy, energy efficiency and low-emissions technologies. As of June 30, 2014, the CEFC had contracted investments of over $900 million in projects, with a total value of over $3 billion.
The CEFC invests for a positive financial return, with its more than 40 direct investments and 25 projects co-financed under aggregation programs that are expected to achieve a positive net benefit for the taxpayer.
