01Performance
Annual performance statement
INTRODUCTORY STATEMENT
The Board, as the accountable authority of the Clean Energy Finance Corporation, presents the 2015-16 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
In 2015-16, we committed more funds, supported more projects and mobilised an even greater amount of private sector capital into clean energy projects. From the CEFC’s inception in 2013 through to 30 June 2016, total investment commitments were almost $2.3 billion, contributing to projects with a total value of $5.7 billion. A summary of the CEFC’s performance outcomes is included in Figure 17. Performance has been assessed against the performance criteria set out in the 2015-16 CEFC Corporate Plan, as well as the key performance indicators (KPIs) set out in the 2015-16 Portfolio Budget Statements.
Figure 17: CEFC performance summary 2015-16
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PERFORMANCE CRITERION |
CRITERION SOURCE |
OUTCOME |
|---|---|---|---|
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1 |
Performance against Portfolio Benchmark Return (PBR) target |
2015-16 Portfolio Budget Statements 2015-16 Corporate Plan |
4.65% versus a PBR target of 5.95% to 6.95% |
|
2 |
Operating expenditure (total expenses less concessional and loan and impairment charges) |
2015-16 Corporate Plan |
Operating expenditure of $23m compares favourably to the KPI target of $26m |
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3 |
Average full time equivalent (FTE) staff |
2015-16 Corporate Plan |
Average of 61 FTEs was in line with resourcing plans and expenditure budget |
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4 |
Placement of funds into Australia’s clean energy sector ($ deployed) |
2015-16 Portfolio Budget Statements 2015-16 Corporate Plan |
$416m of deployed funds compares favourably to a target of $400m |
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5 |
Expected carbon abatement from projects committed to |
2015-16 Corporate Plan |
Total projected lifetime carbon abatement of current portfolio is 38.5 million tonnes of CO2 equivalent emissions. Note the CEFC does not claim that this abatement occurs independently of complementary policy, such as the RET. |
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6 |
Financial leverage in projects committed to |
2015-16 Corporate Plan |
Every $1 of CEFC investment was matched by $1.95 of private sector investment, which compares favourably to a KPI target of $1: $1 |
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7 |
Investment in renewable energy, energy efficiency and low emissions technologies |
2015-16 Portfolio Budget Statements 2015-16 Corporate Plan |
Investment commitments of $837m compared favourably with a KPI target of $800m |
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8 |
Building industry capacity Value and diversity of tangible pipeline of opportunities |
2015-16 Portfolio Budget Statements 2015-16 Corporate Plan |
Pipeline of investment opportunities increased from around $3.6b to more than $7b at 30 June 2016 |
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9 |
Continue to develop the organisation with highly skilled people, efficient systems and processes for scalability as an institution |
2015-16 Corporate Plan |
The organisation has maintained and added, as appropriate, highly-skilled people. An organisation restructure during the year has better aligned the investment and operating structure with the needs of the growing business |
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10 |
High level of employee engagement and effective team behaviours |
2015-16 Corporate Plan |
Unplanned employee turnover reduced from 24% in the prior year to 8% during 2015-16 |
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11 |
Effective risk management framework |
2015-16 Corporate Plan |
There is a strong focus on risk management throughout the CEFC. Our risk management practices were assessed as “advanced” in the Comcover Risk Management Survey 2016 |
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12 |
Key business systems installed and implemented |
2015-16 Corporate Plan |
New finance, customer relationship management and employee learning systems were implemented during the year, along with enhancements to the contract management system |
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13 |
Dissemination of information to industry stakeholders |
2015-16 Portfolio Budget Statements 2015-16 Corporate Plan |
Information effectively disseminated through our website, conferences, industry presentations, media, market reports and stakeholder communications. |