Yates and Corbell set up clean energy fund
The founding and former head of the Clean Energy Finance Corporation, Oliver Yates, and the former Deputy Chief Minister of the ACT, Simon Corbell, have jointly established a new clean energy trading firm, Clean Energy Derivatives Corporation (CEDC), with plans to raise $250 million to fund renewable energy and storage projects.
Headed by CEO Ashleigh Antflick, the CEDC aims initially to underwrite around 450MW of new renewable and storage projects, and will likely go back to investors to raise more capital to meet market opportunities.
The CEDC sets out as its mission “To accelerate the decarbonisation of Australia’s energy market though the increased use of clean energy generation, storage and related technological advances.”
The CEDC will operate on the derivatives or 'contracts for difference' (CID) principle for the bundled output of generators, effectively betting on future power prices, in order to provide clean energy generators with price stability.
The ACT, Victoria and Queensland governments have all adopted, under which reverse auctions for renewable energy are held.
In an interview with the Financial Review, Mr Yates said CEDC aimed to rise the first $100 million to start trading by Christmas.
More information is at http://www.cedc.com.au/