Home' ALGY : ALGY Edition 23 2016 Contents THE AUSTRALIAN LOCAL GOVERNMENT YEARBOOK EDITION 23 • 65
With a $30 million CEFC loan, the City is upgrading its public
lighting network, and installing rooftop solar and other energy-
efficiency initiatives in public buildings.
The City expects to slash its energy bills by more than
$1 million per year by switching 16,000 uneconomical
streetlights to energy-efficient LEDs over the next three years.
It is also providing $10 million in finance to the Sustainable
Melbourne Fund to increase the sustainability of the City of
Melbourne's commercial building stock through Environmental
Flexible and competitive finance for councils
The CEFC Local Government Finance Program provides councils
with access to flexible and competitive fixed-rate long-term
finance for major investment projects.
'Australia has more than 560 local councils, which spend
more than $32 billion annually on housing and community
amenities, as well as transport and communications
infrastructure,' McCartney says.
'Councils are understandably cautious about debt finance;
however, in a period of historically low interest rates, this is the
right environment for councils to consider their financing options.
'By proactively investing in well-established clean energy
solutions, councils can reduce energy costs and lock in the long-
term benefits of energy efficiency.
'Because these investments lead to lower energy use,
councils can reduce their ongoing operating costs. These
savings may be sufficient for councils to repay the loan without
impacting their net cash flows.'
Clean energy options for councils
The CEFC finance will support major investment activities across
a range of eligible projects, including:
• energy from waste projects -- to create an energy source
from council waste, reducing both landfill and energy costs
• rooftop solar photovoltaics on council buildings -- to provide
a renewable energy source using the council's own assets
• streetlighting upgrades -- to convert to more efficient LED
lighting, which can cut energy costs, as well as operation
and maintenance costs
• building upgrades -- to improve energy efficiency through a
broad range of options, reducing energy costs
• leisure and aquatic centres -- to systematically address these
high-energy users, with a combined approach to introduce
better heating, ventilation and air-conditioning solutions as
well as renewable energy sources
• electric and low-emissions vehicles -- to lower council fuel
bills at the same time as lowering emissions; can include
related infrastructure such as charging stations.
Other projects can also be considered where they fall within
the CEFC's mandate, which covers renewable energy, energy
efficiency, and low-emissions technologies.
How does it work?
The CEFC Local Government Finance Program can finance a
large single project or a package of smaller works. For smaller
councils whose projects might not be large enough to qualify,
there's the ability to aggregate with other councils and enter
joint financing agreements.
The loans can be drawn over three years and have terms
of up to 10 years. This means that they can be tailored to take
advantage of the payback periods of the technologies installed.
Councils wishing to secure finance through the CEFC
program can email the CEFC Local Government team
Projects that meet the CEFC's investment criteria will be
advised as soon as possible. The time frames to finalise a loan
will vary, but it would be reasonable to assume a three- to four-
month period from initial assessment to final contracts.
How do I learn more about the CEFC?
The CEFC was established by the Australian Government, and
operates under the Clean Energy Finance Corporation Act 2012.
It invests commercially to increase the flow of funds for clean
energy technologies, and it has supported projects across the
The CEFC has finance programs tailored to suit building
owners, manufacturers, producers and local businesses looking
to reduce their energy use through installing energy-efficient,
low-emissions or renewable technologies.
Please visit the CEFC website for further information:
See case study over the page.
Links Archive ALGY Edition 24 2017 Navigation Previous Page Next Page