Document ID: chunk:federal_register_of_legislation:F2023L01023:body:0:p5
Version: federal_register_of_legislation:F2023L01023
Segment Type: other
Provision Reference: 
Character Range: 11320–14238

grids (including demand management projects).
The Board may seek and consider the advice of the Rewiring the Nation Office, the Australian Energy Market Operator and/or the Australian Energy Infrastructure Commissioner in respect of the Corporation's activities relevant to the Rewiring the Nation Fund. In particular, the Board may take into account advice from the Rewiring the Nation Office as to whether the nominated Minister and relevant State or Territory Energy Ministers, according to where the project is located, consider the project a priority for the delivery of Australia's greenhouse gas emissions reduction targets and relevant State or Territory targets.
The Board must consider opportunities to enhance benefits to electricity consumers from its Rewiring the Nation investments and the renewable energy generation facilitated by those investments.
Benchmark rate of return
In relation to investments made for the purposes of the Rewiring the Nation Fund, the Board must target an average return of at least the Corporation's cost of the Rewiring the Nation functions over the medium to long term. Performance against this benchmark will be measured before any concession charges, such as impairment or mark-to-market adjustments resulting from any concessional component.
Risk level
In targeting the benchmark return for the Rewiring the Nation Fund and operating with a commercial approach (in the context of the objectives of the Rewiring the Nation policy), the Board must seek to develop a portfolio that in aggregate has an acceptable level of risk, having regard to the terms of the Act and the focus on particular areas identified in this subsection.
The level of risk (including, without limitation, any relevant individual risk and the overall risk level) deemed acceptable by the Board may be higher for the Rewiring the Nation Fund than for the General Portfolio and the Specialised Investment Funds. This reflects the differences in the types of investments (and the associated risks, including, without limitation, concentration risks and regulatory risks) being made for the purposes of the Rewiring the Nation Fund.
The Board must periodically review its investment practices for the purposes of managing the risk of the Rewiring the Nation Fund portfolio over time and must advise the responsible Ministers of specific measures taken in this regard.
Limits on concessionality
The Board, in relation to all investments made for the purposes of the Rewiring the Nation Fund, may deploy the amount of concessionality it deems required in order to achieve the Government's objectives in respect of the Rewiring the Nation policy.
Concessionality reflects the mark-to-market valuation of loans made that financial year and should be measured as the difference between the present value of each loan at market rates and the present value of each loan at the given concessional rate.
    16.