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Glossary and Abbreviations





Refers to reductions in CO2-e emissions.

Aggregation finance

The provision of CEFC finance via co-finance intermediary partners, to aggregate customer demand that would otherwise be too expensive to be serviced directly by the CEFC.


The means by which money from the Treasury is made available to the Australian Government by the Parliament.

Clean Energy Finance Corporation Act 2012 (CEFC Act)

The enabling legislation which creates and empowers the CEFC.

Clean Energy Innovation Fund

The Clean Energy Innovation Fund is a specialist financier focused on early-stage clean energy companies. It draws on CEFC finance to provide primarily equity finance to innovative clean energy projects and businesses which involve renewable, energy efficiency and low emissions technologies. The Innovation Fund operates with the assistance of ARENA.

Clean energy and clean energy technology

The types of technology the CEFC is permitted to invest in, which includes ‘renewable energy technologies’, ‘energy efficiency technologies’ and ‘low emissions technologies’ as defined in the CEFC Act.

Climate (or green) bonds

A specific type of green bond issued by the Climate Bond Standards and Certification initiative.


Carbon dioxide equivalent is a standard measure that takes account of the different global warming potential of greenhouse gases and expresses the cumulative effect in a common unit, as defined in the Australian National Carbon Offset Standard.

Co-finance partner, co-financed products

CEFC finance is indirectly provided to end users via a third party, such as a bank or financial institution. The CEFC develops products with co-financiers to leverage their capital and customer networks. These products can be distinguished from a direct CEFC loan where the finance moves directly from the CEFC to the project owner.

Committed investment

Where the CEFC has made a commitment to invest funds if all necessary pre-conditions are fulfilled by the counterparties.


Concessionality is defined by the Investment Mandate and reflects the mark-to-market valuation of loans committed that financial year. It is measured as the difference between the net present value of each loan’s future cash flows, discounted at market rates, and the net present value of each loan’s future cash flows, discounted at the given concessional rate.

Cornerstone investor

Cornerstone investors are usually large institutional investors, or reputable individuals of substance, whose early stage involvement in an investment signals to the market that an opportunity may be worthwhile for other investors to also consider.

Corporate facility or corporate loan

Typically, a loan to a company (rather than a specific project) for smaller-scale projects, or a bundle of projects, often secured against the assets or operations of the corporate entity.

Dollars ($)

All references to dollars are Australian dollars unless otherwise specified.

Ecologically Sustainable Development (ESD)

A set of principles that corporations and government entities must report against under the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act).

Energy efficiency technologies

Energy efficiency technologies, as defined in the CEFC Act, include technologies (including enabling technologies) that are related to energy conservation and demand management technologies.

Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act)

The Australian Government’s central piece of environmental legislation, which provides a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places.

External benefits

Benefits that are enjoyed by parties outside a transaction e.g. emissions reduction that benefits the environment.

Forecast lifetime yield

The annualised weighted average of forecast income on outstanding principal balance over the life of the investment.

Government Policy Order

An instrument to direct government entities made under the PGPA Act.

Greenhouse gases

The six Kyoto Protocol classes of greenhouse gases are carbon dioxide (CO2-e), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).

Hybrid technology

A combination of technologies that integrate a renewable energy generation technology with other technologies into a combined system.

Investment Mandate

A formal Ministerial Direction made under the CEFC Act which specifies conditions under which the CEFC may perform its investment function.

Key Management Personnel

Key Management Personnel (KMPs) are Board Members and staff who have the authority and responsibility for planning, directing and controlling the activities of the CEFC, directly or indirectly, including non-executive Board members, the CEO and other members of the senior executive team reporting to the CEO.


In reference to renewables, a power station large enough to earn certificates under the LRET (i.e. above 100kW for solar PV).

Large-scale generation certificates

Tradeable certificates created under Section 17 of the Renewable Energy (Electricity) Act 2000. One LGC is equivalent to 1MWh (megawatt hour) of eligible renewable electricity produced by an accredited renewable power station above its baseline.

Large-scale Renewable Energy Target

The LRET creates a financial incentive for the establishment or expansion of renewable energy power stations, such as wind, solar farms and hydro-electric power stations. It does this by legislating demand for Large-scale Generation Certificates (LGCs). One LGC can be created for each megawatt hour of eligible renewable electricity produced by an accredited renewable power station.

Lifetime abatement

The estimated amount of abated emissions over a project’s useful life.

Low emissions technology

The CEFC Board considers low emissions technologies on a case-by-case basis. See the Investment Guidelines on the CEFC website: www.cefc.com.au.

Marginal loss factors

Marginal Loss Factors (MLFs) modify the revenue received by electricity generators to reflect electricity ‘lost’ along the transmission and distribution networks. MLFs are calculated by AEMO annually under the National Electricity Rules.

Merchant basis

In respect of renewable energy generation, energy sold onto the spot market without the benefit of a fixed price power purchase agreement where the price received is the prevailing market price at the time of sale.

National Australian Built Environment Rating System: NABERS

A national ratings system that measures the environmental performance of a building or tenancy including energy efficiency, water usage, waste management and indoor environment quality.

Nationwide House Energy Rating Scheme: NatHERS

A national star rating system that rates the energy efficiency of a home, based on its design.

National Electricity Market: NEM

A regulated electricity trading market that interconnects the electricity grids of the States and Territories of New South Wales, Victoria, Queensland, South Australia, Tasmania and the ACT.

National Energy Productivity Plan: NEPP

A COAG Energy Council agreed package of measures to improve Australia's energy productivity by 40 per cent between 2015 and 2030.


Not connected to the electricity grid, such as in remote areas.

Offtake agreement

An agreement between a producer (of energy or crops) and a purchaser to purchase production output for a defined period at a defined price.

Other Highly Paid Staff

Other Highly Paid Staff (OHPS) are CEFC employees (excluding KPMs and senior executives) whose total remuneration exceeds the $220,000 threshold for the 2018–19 year.


A type of technology that converts energy from the sun into electricity, as in solar PV.

Portfolio Benchmark Return

A long-term target rate of return established by the CEFC Investment Mandate, against which the performance of the portfolio invested by the Corporation is measured.

Positive externalities

Benefits which are not exclusive to parties to a contract, such as an investment contract. May include reduced carbon emissions which benefit society as a whole. It is a requirement of the CEFC Investment Mandate that positive externalities be considered when the CEFC makes investment decisions.

Power Purchase Agreement

A type of offtake agreement where a purchaser agrees to purchase and a supplier agrees to supply future generated electricity, usually at a specified price for a defined period.

Project finance

Long-term financing of infrastructure and industrial projects (such as a utility-scale generator or an onsite generation facility) which will be repaid from the projected cash flows of the project without recourse to the balance sheets of the sponsors.

Project proponents

The ‘proposers’ or owners of a given project, as distinct from the project financiers.

Public Governance, Performance and Accountability Act 2013 (PGPA Act)

An Act about the governance, performance and accountability of, and the use and management of public resources by, the Commonwealth, Commonwealth entities and Commonwealth companies, and for related purposes.

Reef Funding Program

The Reef Funding Program is financing clean energy projects in the Great Barrier Reef Catchment Area, supporting delivery of the Reef 2050 plan and the long-term health of the Great Barrier Reef. CEFC finance is directed to eligible projects across renewable energy, energy efficiency and low emissions technologies.


Repayment of an existing loan with a new loan.

Renewable Energy Target

A target for the production of electricity from renewable energy sources under the Renewable Energy (Electricity) Act 2000. Made up of the small-scale renewables scheme (SRES) and the large-scale target (LRET).

Renewable energy technologies

Clean energy technologies that are defined as ‘renewable energy technologies’ under the CEFC Act, and include hybrids that integrate renewable energy technologies, and technologies that are related to renewable technologies, including enabling technologies.

Renewable Energy Zones

Areas in the NEM where clusters of large-scale renewable energy can be efficiently developed, promoting economies of scale in high-resource areas, capturing important benefits from geographic and technological diversity in renewable resources, and recognising the critical physical must-have requirements for power system security.


Investment amounts that exit the portfolio (e.g. by sale, repayment, cancellation of all or part of the facility, reduction in quantum borrowed etc).

Senior debt

Debt that takes priority in repayment over other unsecured or more junior debt.

South West Interconnected System

The largest interconnected power system in Western Australia, the South West Interconnected System (SWIS) incorporates over 7,800 Kilometres of transmission lines, 5,798MW of registered generation capacity (including 513MW of non-scheduled generation), providing 18 terawatt hours of electricity supply each year to serve more than one million customers.

Special Account

A type of Australian Government account in which funds are held for a specified purpose. The CEFC Act creates a Special Account in order to fund the CEFC.

Subordinated debt

Where two or more financiers are involved in offering finance, one may take a ‘subordinated’ or ‘junior debt’ position relevant to the other (‘senior debt’) in the event of a loss (i.e. one financier may rank after the other financier in priority for recovery in the event the finance recipient becomes insolvent and cannot repay the loan).

Sustainable Cities Investment Program

Through the Sustainable Cities Investment Program, the CEFC invests to accelerate the development and deployment of a broad range of clean energy projects in Australia’s 50 largest cities, from Alice Springs with 25,000 people; to Sydney, Australia’s largest city, at some 5.1 million people.


Tonnes of carbon dioxide equivalent greenhouse gas.


Length or term of a loan.

Total Annual Remuneration Package

Total remunerative benefits for staff including salary, superannuation and any other benefits.



Full Name


Administrative Arrangements Orders


Australian Accounting Standards


Australian Accounting Standards Board


Australian Energy Market Operator


Australian Energy Market Commission


Australian Industry Participation Plans


Anti-Money Laundering and Counter-Terrorism Financing Act 2006


Australian National Audit Office


Australian Renewable Energy Agency


Australian Securities Exchange


Bloomberg New Energy Finance


Clean Energy Finance Corporation


Clean Energy Finance Corporation Act 2012


Carbon dioxide


Concentrated solar power


Employee Assistance Program


Equal Employment Opportunity (Commonwealth Authorities) Act 1987


Export Finance and Insurance Corporation


Environment Protection and Biodiversity Conservation Act 1999


Emissions Reduction Fund


Ecologically sustainable development


Fringe benefits tax


Freedom of Information Act 1982


Public Governance, Performance and Accountability (Financial Reporting) Rule 2015


Full-time equivalent


Financial assets at fair value through profit and loss


General government sector


Greenhouse gases


Green Investment Group


Government Policy Order


Goods and Services Tax




Gigawatt hour


Held to maturity


Information Publication Scheme


Joint Committee of Public Accounts and Audit


Key Management Personnel


Key performance indicators




Kilowatt hour


Light emitting diode


Marginal Loss Factors


Member of Parliament




Megawatt hour


National Australian Built Environment Rating System


Northern Australia Infrastructure Fund


National Electricity Market


National Energy Productivity Plan


Non-Governmental Organisation


Other highly paid staff


Parliamentary Budget Office


Portfolio Benchmark Return


Portfolio Budget Statement


Public Governance, Performance and Accountability Act 2013


Public Interest Disclosure Act 2013


Power Purchase Agreement


Public Private Partnership




Renewable Energy Target


Renewable Energy Zone


South West Interconnected System


Total Annual Remuneration Package


Work, Health and Safety Act 2011