Lloyds of London to fund Australian projects

The Lloyds building in London

Lloyds Banking Group said it plans to finance Australian renewable energy projects, targeting ventures competing for funds from the government’s $1.5bn solar flagships program.

The scheme aims to support the construction of up to four large scale, grid-connected solar power stations in Australia, using solar thermal and photovoltaic technologies.

The London-based bank may provide loans to Australian solar or wind power developments, Ed Wilson, head of renewable energy for Lloyds, said in an interview with Bloomberg in Sydney, this week declining to identify any projects it is evaluating.

“We’re looking to have a more international flavor and the Solar Flagships program gives us a good opportunity to look at the prospects down there,” he said.

BP, TRUenergy Holdings, Suntech Power Holdings and AGL Energy are among companies who have shown an interest in developing such projects.

Acciona SA of Spain pulled out of the Solar Flagships program in December, citing market uncertainty and the lack of a power purchase agreement as factors.

Lloyds is funding offshore wind projects in the UK, in a sign that mainstream lenders are now moving into the renewables sector.