Infratil Limited · NZX:IFT
Infratil — Tilt Renewables — Investor Day (April 2018)
17 slides from Infratil's investor day presentation, Apr 11, 2018
Slide 1: Tilt Renewables presentation for Infratil Investor Day
Tilt Renewables presentation for Infratil Investor Day 11 April 2018 01
Slide 2: Agenda
AGENDA • Overview – portfolio and team • Tilt Renewables differentiators • Highlights for FY2018 • Australian NEM in transition • Policy trends • Market trends • NZ - Renewable energy landscape • Focus areas for Tilt Renewables
Slide 3: Overview of Tilt Renewables
Overview of Tilt Renewables 19+ years experience developing, owning and operating renewable generation assets across Australasia Wholly owned generation Development options capacity (Potential MW) Operational Assets under Wind Solar Storage Assets construction 3,500MW+ AU 582MW operational NZ 54MW i
Slide 4: Tilt Renewables Portfolio: 582 MW operational, 54 MW under construction
Tilt Renewables Portfolio 582 MW operational, 54 MW under construction ✓ Source: TLT Analysis 4
Slide 5: Tilt Renewables Value Proposition
Tilt Renewables Value Proposition Key differentiators 1 2 3 4 High performing Solid balance sheet Developing storage / Demonstrated ability assets, revenues with strong cashflow firming capability with to develop, execute contracted to strong generated from technology neutral and fund projects count
Slide 6: Value Proposition: Large operational base and immediate growth opportunities
Tilt Renewables Value Proposition • Early stage site feasibility, Large operational base and immediate growth opportunities approvals and development 1 Competitor Comparison MW 1000 • Procurement, financing and delivery 900 2 800 700 600 • Operations and commercial management 500 3 400 300 200 • Ass
Slide 7: Key Differentiator - PPA & Counterparty Overview
Key Differentiator - PPA & Counterparty Overview Tilt Renewables has a high level of contracted revenue, counterparties include Origin Energy, Trustpower, and Meridian Energy 100% 98% 90% 84% 83% 83% 82% 82% 82% 82% 82% 82% 82% 82% Contracted capacity1 (%) 80% 71% 70% 60% 50% 40% 30% 20% 20% 20% 20%
Slide 8: Australia's National Electricity Market is in transition
Australia’s National Electricity Market is in transition Market characteristics today Opportunities for Tilt Renewables • Dominated by black/brown coal, which is • Progressive retirement of 20GW coal, which must ageing be replaced • Low, but growing renewables penetration • Renewables /MWh costs red
Slide 9: Well positioned for Australian energy market transition: Policy
Tilt Renewables is well positioned to take advantage of Australian energy market transition 1 Policy Trends are supportive How Tilt Renewables is positioned • National Energy Guarantee – components: • Tilt Renewables has a zero emissions portfolio • Emissions linked to Australia’s international comm
Slide 10: Well positioned for Australian energy market transition: Market
Tilt Renewables is well positioned to take advantage of Australian energy market transition 2 Market Trends are supportive How Tilt Renewables is positioned • Genuine alternatives to traditional PPA market available • Allows TLT to access multiple offtake options to maximise • Corporate PPA market (
Slide 11: New Zealand - Renewable Energy Landscape
New Zealand - Renewable Energy Landscape 3 Market Trends are supportive • Relatively stable NZ energy market • Aluminium prices support short-term Tiwai smelter operation • Government review of electricity pricing underway • Labour govt. supportive of transition to zero emissions energy mix • Demand
Slide 12: Focus areas for Tilt Renewables: Next months
Focus areas for Tilt Renewables: Next 12 months Dundonnell / Delivering value Storage and VRET process from the pipeline firming options • Opportunity to grow operational • Diversity across NEM states and • Technology neutral approach: portfolio by 50+% technology batteries, pumped-hydro, gas • Bank
Slide 13: Dundonnell / VRET process
Key project stats Dundonnell Wind Farm Dundonnell / VRET process Turbines 80 wind turbines of up to 4.2MW Installed Capacity 336 MW Key commercial arrangements negotiated Annual production ~1,200 GWh lifetime average • Firm EPC and long-term O&M pricing Construction period ~24 months • Transmission
Slide 14: Delivering value from the pipeline
Delivering value from the pipeline Overview of key development projects Potential Projects with Environmental Consents Technology Location MW Tilt Renewables has made good progress developing its Dundonnell Wind AU-VIC 336 pipeline of near-term investment opportunities beyond 3 x Queensland solar pr
Slide 15: Storage and Firming Options - Highbury Pumped Hydro
Storage and Firming Options - Highbury Pumped Hydro Why Storage? - Store wind energy at times of high production (low price) - Release wind energy at times of high demand (high price) - Participation in system support ancillary services market - Enables options beyond variable volume PPA offtakes -
Slide 16: Storage and Firming Options – Solar and Batteries
Storage and Firming Options – Solar and Batteries Co-located wind and solar options at Snowtown and Waddi Source: TLT Analysis • Co-located solar + wind + storage = • smoother energy profile, • lower ancillary services costs, • higher transmission asset utilisation • Batteries provide additional sho
Slide 17: Summary
Summary - Diverse operational base, strong cashflows - Revenues highly contracted - Immediate opportunity for significant growth - Key market fundamentals remain positive - Significant development pipeline - Storage and firming options being developed - Real alternatives to traditional PPAs for offt