The Powering Australian Renewables Fund (PARF) is a landmark financing initiative created by AGL.
PARF is an innovative financing initiative designed by AGL to unlock investment in large-scale renewable energy.
The $2-3 billion fund aims to develop and own approximately 1,000 MW in large-scale renewable generation projects, providing opportunity for investors to finance a portfolio of renewable assets, to diversify risk and reduce costs.
The fund was established in 2016 through a partnership with QIC, on behalf of its clients the Future Fund and those invested in the QIC Global Infrastructure Fund.
As founding partner, we're proud that through PARF, we're helping meet Federal Government targets, spur investment in renewable energy, and support Australia's transition to a low-carbon economy.
Latest PARF projects
In August 2017, we announced the financial close on the 453 MW Coopers Gap Wind Farm Project.
In November 2016, we announced the financial close on the 102 MW Nyngan Solar Plant.
PARF equity partners
AGL provided $200 million in cornerstone equity while QIC provided $800 million on behalf of its clients, including the Future Fund and QIC Global Infrastructure Fund investors. The balance of funding will be debt raised at a project-by-project level.
We're providing offtake for up to the first seven years, $200 million in cornerstone equity, and new pricing models for purchasing the power and large scale generation certificates (LGCs) produced by the fund.
Beyond this time, we anticipate PARF may contract with a range of energy retailers and energy end-users that need to manage their energy and LGC requirements.
We've announced financial close on the sale of the following projects into the fund:
- The 102 MW Nyngan Solar Plant (NSW)
- The 53 MW Broken Hill Solar Plant (NSW)
- The 200 MW Silverton Wind Farm Project (NSW)
- The 453 MW Coopers Gap Wind Farm Project (QLD)
PARF is not focussed on a specific renewable technology. However, the fund is expected to invest in projects using only proven renewable technology.
No. We encourage other developers to bring their projects to PARF. However, the fund is expected to wholly own any projects that it undertakes.
Every potential project will be assessed on its economic viability and its committed project timelines.
This may cover a range of factors, including energy and LGC price forecasts, permits and connection.
PARF has its own board of directors. The board makes investment decisions and represent the fund’s investors. If AGL is in a position of conflict, we will be excluded from that investment decision.