AGL Energy Limited · ASX:AGL
AGL Energy — UBS Australian Utilities Conference 2010
19 slides from AGL Energy's conference presentation, Apr 29, 2010
Slide 1: ASX statement
AGL Energy Limited Locked Bag 1837 Level 22, 101 Miller St T: +61 2 9921 2999 ABN: 74 115 061 375 St Leonards NSW 2065 North Sydney NSW 2060 F: +61 2 9921 2552 AUSTRALIA AUSTRALIA www.agl.com.au ASX statement For personal use only 29 April 2010 Attached is a presentation to be made today by Jeff Dim
Slide 2: Regulatory reform: Blowing in the right direction
AGL Energy Limited For personal use only Regulatory reform: Blowing in the right direction Jeff Dimery Group General Manager Merchant Energy UBS – Australian Utilities Conference 29 April 2010 AGL External
Slide 3: Disclaimer
2 Disclaimer For personal use only The information in this presentation: › Is not an offer or recommendation to purchase or subscribe for securities in AGL Energy Limited or to retain any securities currently held. › Does not take into account the potential and current individual investment objectiv
Slide 4: Investment in renewable technologies
Investment in renewable technologies 3 Wind is the global technology of choice among renewable technologies- 63% of investment in 2009 (US$60bn) For personal use only Source: PEW Centre (2010) UBS – Australian Utilities Conference 29 April 2010 AGL External
Slide 5: Technology cost curve
Technology cost curve 4 Wind currently has a substantial cost advantage For personal use only » Source: ACIL Tasman, AGL, Roam, MMA Renewable technologies UBS – Australian Utilities Conference 29 April 2010 AGL External
Slide 6: Policies globally driving renewable investment
5 Policies globally driving renewable investment For personal use only Since mid-2009, a number of new policies have been announced that will drive renewable investment Country/State Renewable Mandate Spain 22.5% renewable by 2020 US – Colorado 30% renewable by 2020 US - Alaska 50% renewable by 2025
Slide 7: Expanded Renewable Energy Target
6 Expanded Renewable Energy Target… For personal use only Source: Roam, AGL UBS – Australian Utilities Conference 29 April 2010 AGL External
Slide 8: Renewable Energy Certificates: Prices start to rise
7 Renewable Energy Certificates: Prices start to rise Penalty effectively raised to $93 per MWh. For personal use only $100 › Responsibility resides with $90 retailer $80 $70 › Increased penalty Expanded MRET Announced SHW & PV Increases REC Bank $60 recognises need to $/REC incentivise development
Slide 9: Impact of Renewable Policy Setting
8 Impact of Renewable Policy Setting Fundamental changes required to generation mix. For personal use only New Build Generation Mix Years of Forecast - 2010 to 2020 Coal Plant CCGT Base Plant OCGT Peak Plant Renewable Plant 20000 18000 Capacity required (MW) 16000 14000 Renewables dominate 9,500MW 1
Slide 10: Renewable Energy Certificate (REC) obligations
9 Renewable Energy Certificate (REC) obligations Appropriate regulatory settings required to facilitate investment. For personal use only › Macarthur (365MW) conditional commitment › Federal legislation requires AGL to surrender approximately 9 million RECs per annum by 2020 › Strong pipeline of dev
Slide 11: Australia has a world class wind resource
10 Australia has a world class wind resource For personal use only Average wind speeds (metres per second) › Wind resource is best in Tasmania and areas in Western Australia, South Australia and Victoria › NSW, Queensland and the Northern Territory have limited large scale wind potential › The best
Slide 12: Wind farms: Success factors
11 Wind farms: Success factors For personal use only A number of critical issues can mean success or failure of a wind farm development: › Wind resource › Land access (support by landowners) › Capital cost › Connection access: (cost, loss factor, grid capacity) › Wind farm scale (to absorb certain f
Slide 13: Wind farms: Cost profile
12 Wind farms: Cost profile For personal use only 1 UBS – Australian Utilities Conference 29 April 2010 AGL External
Slide 14: Wind resource drives turbine selection
13 Wind resource drives turbine selection Location of Hallett 1 turbines & wind speeds For personal use only › Wind speed generally increases with height › Wake effects reduce yield and drives turbine spacing › Hallett Wind Farm stages 1, 2 and 4 are classic wind farm sites with prevailing winds per
Slide 15: Wind project diversity improves reliability
14 Wind project diversity improves reliability Geographical diversity enhances the level of ’firm’ generation. For personal use only Wattle Point Hallett 1 Pool Pric e 100 $10,000 90 Regional pool price ($/MWh) 80 Wind generation (MW) $1,000 70 60 50 $100 40 30 $10 20 10 0 $1 Sun 06 Mon 07 Tue 08 We
Slide 16: Delivering high capacity factors
15 Delivering high capacity factors Operational performance exceeds investment assumptions. For personal use only 1 UBS – Australian Utilities Conference 29 April 2010 AGL External
Slide 17: Strong growth pipeline
16 Strong growth pipeline Market leading portfolio provides strategic depth and optionality. For personal use only Project Nominal Capacity (MW) Location Type Project Status Definition Bogong 140 Victorian Alps Hydro Commissioning Committed McKay Creek Up Rate 10 Victorian Alps Hydro Commissioning C
Slide 18: Summary
17 Summary For personal use only › Significant progress with renewable policies › Critical that legislation is passed in May/June 2010 › Requires ~ $30 billion of investment in renewable generation › Delay to CPRS is disappointing › Uncertainty adversely impacts investment decisions › Wind will be t
Slide 19: Further Information / Contacts
18 Further Information / Contacts For personal use only A range of information on AGL Energy Limited including ASX & Media Releases, Presentations, Financial Results, Annual Reports and Sustainability Reports is available from our website: www.agl.com.au Alternatively, contact: INSTITUTIONAL INVESTO
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