Australian Government Announces $100m Renewable Energy Venture Capital Fund
The governing political party in Australia, the Australian Labor Party (ALP) announced on Friday as part of the Government’s climate change policy for the forthcoming election a new renewable energy focussed venture capital fund, with the Government providing $100m for Australian companies.
The fact sheet describes the initiative as follows:
$100 million Renewable Energy Venture Capital FundA re-elected Gillard Government will also allocate $100 million over four years to a Renewable Energy Venture Capital (REVC) Fund.
This initiative addresses another challenge facing many renewable energy companies– access to capital. The Australian Centre for Renewable Energy (ACRE) will work with financial institutions to develop structured renewable energy products to help overcome this hurdle.
The REVC Fund will make critical early-stage equity investments that leverage private funds to help commercialise emerging renewable technologies, for instance in geothermal, solar, wave and bio-energy technologies.
Clearly, the plan is currently short on detail, but it sounds like public dollars will be put up to supercharge possible returns from funds focussing on cleantech – as well as enhancing fund management fees.