Bridging the Clean Energy Tenor Gap

Australia faces a significant funding shortfall in meeting its Net Zero targets, and a key driver is the “tenor gap.” This refers to the mismatch between the long-term financing renewable projects require (10–30 years) and the much shorter horizons of wholesale electricity contracts and investor appetite (3–5 years). The result is uncertainty that deters capital and slows the transition.

Put simply, energy suppliers need longer commitments to finance and build projects, while buyers and investors typically prefer shorter terms. Bridging this gap is essential to unlocking the flow of capital needed to scale clean energy.

The result? A fractured system where private wealth managers grapple with illiquid, opaque, institution-only deals, high minimums, and a lack of transparency.

Government initiatives are stepping in to bring about change. The Clean Energy Finance Corporation (CEFC), with its $10B allocation, de-risks projects and crowds in private investment, achieving a lifetime leverage of $3.55 per dollar committed. Meanwhile, the expanded Capacity Investment Scheme (CIS) targets 40GW of new renewable capacity by 2030, potentially unlocking $73B in electricity sector investments. These policies provide revenue safety nets and market certainty, but they're tailored for large institutional players who can handle long-term risks. For project developers, it's more efficient to secure billions from a few super funds than from fragmented wealth managers and their private investors. This institutional bias leaves a massive capital void, estimates peg the net-zero transition at $6.2 trillion to $9 trillion by 2060, far beyond public funding alone.

This isn’t just a little financial bump, it’s a systemic market failure intensified by rising next-gen ESG demand. Research shows sustainable investors are eight years younger on average, more engaged in long-term planning, and open to tech-driven advice like AI. With Gen Z investing earlier and a looming wealth transfer from Baby Boomers, values-driven clients are demanding action. Yet, nearly half of potential ESG investors cite knowledge gaps as barriers, turning to wealth advisors for guidance. Without suitable products, wealth firms face a "relevance gap," risking client loss in a market where 66% of ASX200 companies have net-zero targets but few allocate capital accordingly.

The tenor gap exacerbates these issues by fostering risk aversion and centralising finance. Private markets are by nature, illiquid. They lock funds away for decades and lax reporting for unlisted assets make due-diligence tough. Funds like Octopus Australia's OASIS, with hefty minimums for investors, exemplify the barriers. Globally, a $18 t rillion capital shortfall threatens the renewable energy transition, with 90% tied to electricity investments. In Australia, NSW's $50B project pipeline and AEMO's call for 6GW annual additions highlight the urgency, but Q1 2025 saw only 386MW funded against a 1.5GW goal.

Well... this is where we fit in.

At RegenX, we’re democratising clean energy through tokenization, focusing on underserved mid-scale solar projects (100kW-30MW). These "behind-the-meter" assets, owned by businesses, replace grid power on-site, sidestepping utility-scale hurdles like regulatory uncertainty, and transmission delays. With only 2,175 installations out of 37,000 potential sites as of 2024, this segment is ripe for growth, offering localised, faster deployment and economic benefits.

Our platform bridges the tenor gap with four pillars:

• Lower Minimums: Fractional ownership via tokens lowers entry barriers, enabling broader investor participation beyond institutional thresholds.
• Transparency: Blockchain provides real-time tracking of energy output, Renewable Energy Certificates (LGSs), carbon offsets, and financial performance, eliminating opacity and aligning with investor demands for verifiable data.
• Built-in Liquidity: Secondary marketplace trading mimics liquid models like Octopus OREO's quarterly redemptions, turning illiquid assets into accessible ones.
• Compliance and Impact: Deals are vetted against Australia's Sustainable Finance Taxonomy, ensuring "Do No Significant Harm" and combating greenwashing, while delivering tangible ESG outcomes.

By digitising these assets, RegenX empowers wealth managers to meet client demand and needs, capture the multi-trillion-dollar opportunity, and helps them stay relevant. We complement giants like Macquarie, QIC, and Octopus, not compete, by filling the private wealth void through partnerships and regulatory alignment.

If you’re a wealth advisor or investor eyeing regenerative opportunities, let’s connect.

Visit regenx.io to explore how we can partner for a sustainable future. #RegenerativeFinance #CleanEnergy #ESGInvesting #TenorGap