Annual performance statement

INTRODUCTORY STATEMENT

The CEFC Board, as the accountable authority of the Clean Energy Finance Corporation, presents the 2017-18 Annual Performance Statements, as required under paragraph 39(1)(a) of the Public Governance, Performance and Accountability Act 2013 (PGPA Act).

In our opinion, these Annual Performance Statements are based on properly maintained records, accurately reflect the performance of the Corporation, and comply with subsection 39(2) of the PGPA Act.

ENTITY PURPOSE

The CEFC was established by the Clean Energy Finance Corporation Act 2012 (CEFC Act)

“… to facilitate increased flows of finance into Australia’s clean energy sector”.

Ultimately, this objective is achieved through investing directly and indirectly with co-investors and, in doing so, encouraging and facilitating others to also invest in renewable energy, energy efficiency and low emissions technologies and projects.

RESULTS

The CEFC had a strong year in 2017-18. A summary of the CEFC’s performance outcomes is included in Figure 9. Performance has been assessed against the performance criteria set out in the 2017-18 Corporate Plan, as well as the performance criteria set out in the 2017-18 Portfolio Budget Statements.

CEFC FINANCE IN ACTION – ENERGY EFFICIENCY 2017-18

	PERFORMANCE CRITERION	MEASURE	OUTCOME
1	Investment in renewable energy, low emissions and energy efficiency technology	Dollar value of new investment commitments	$2.3 billion against a target of between $900 million and $1.1 billion
2	Placement of funds into Australia’s clean energy sector	Dollar value of capital deployed	More than $2 billion against a target of $650 million
		Expected carbon abatement from committed projects at negative cost (i.e. positive return)	A positive return to the CEFC for each tonne of CO2-e emissions abatement
		Financial leverage in projects financed	Actual leverage was more than $1.80 for every $1.00 committed by the CEFC, which is above the target of $1.00 per $1.00 committed by the CEFC
3	Financial sustainability	Total own-sourced, excluding the unwinding of concessional interest rate discount	$126 million against a target of $81 million
		Operating profit margin1	63% against a target of 50 per cent
		Net profit margin2	56% against a target of 11%
		Performance against portfolio benchmark return set by the Government in the 2016 Investment Mandate No.2	Core Portfolio return of 4.44% against a benchmark of 5.51-6.51 %. Innovation Fund return of –14.71% against a benchmark of 3.21%.
4	Stakeholder engagement and industry leadership	Insights, relationships, impact and amplification	The CEFC fostered increased investment in the sector, sharing insights and working with industry, other public sector bodies/agencies and private sector financiers

1. Calculated as: (surplus from continuing operations, excluding concessional loan charges and unwind of concessional interest rate discount) divided by (total own-source revenue excluding the unwinding of concessional interest rate discount)
2. Calculated as: Surplus from continuing operations divided by total own-source revenue