Infratil Limited · NZX:IFT
Infratil — Tilt Renewables — Investor Day (March 2017)
26 slides from Infratil's investor day presentation, Mar 29, 2017
Slide 1: Infratil Investor Day 29 March 2017
Infratil Investor Day 29 March 2017
Slide 2: Introduction Agenda
Introduction Agenda • Establishing a Growth Business • Global Renewables Energy Trends • Australian energy market dynamics • Tilt Renewables’ strategy • Growth opportunities • What can investors expect in the next 12 months 02
Slide 3: Establishing a Growth Business
Establishing a Growth Business
Slide 4: Establishing a Growth Business
Establishing a Growth Business Victorian Energy Minister Lily D’Ambrosio and Tilt Renewables CEO Robert Farron opening the Melbourne office Standing up the Business post de-merger • De-merger completed 31 October 2016, Tilt Renewables operational on standalone basis • Melbourne office established, o
Slide 5: Operating highlights
Operating highlights Operating performance since de-merger December 2016 quarter production guidance • YTD production to 31 December 2016 ahead of prior period • Wind speeds in March quarter have been stronger in NZ, but GWh Q3 FY17 Q3 FY16 YTD FY17 YTD FY16 below long term average in Australia
Slide 6: Global renewable energy investment themes
20 Global renewable energy investment themes Middle to low income nations G20 per capita 15 High income nations Global decarbonisation trend 2030 emissions 10 Implied COP21 per capital emission limit vs COP21 • Global trend of decarbonisation is starting to be implemented 5 implied 2°C as countries
Slide 7: Australian energy market dynamics
Australian energy market dynamics
Slide 8: Australian energy and climate policy
Australian energy and climate policy • Australia has committed up to a 28% emissions reduction by 2030 which will require significant changes to the generation mix. • Intense debate around energy market reform to balance energy security, affordability and emissions reduction objectives Energy securi
Slide 9: Government pressure to fix the energy crisis
Recent announcement by the South Australia state government and the Australian (federal) Government highlights pressure to come up with solutions to “fix the energy crisis” and intervene as both regulator of and investor in the energy sector SA Government has announced a package of actions to improv
Slide 10: Australian Large-scale Renewable Energy Target - LRET
Australian (Large-scale) Renewable Energy Target - LRET • 33,000 GWh annual target by 2020, current scheme ends in 2030 Estimated annual LRET demand and supply • Requires further ~3GW of renewable generation to be built by 2020 40 Near-term build opportunity • Bipartisan political support, but major
Slide 11: Current Environment for renewables investment
Current Environment for renewables investment • Australia’s COP21 emissions reduction commitment (26-28% by 2030) requires significant changes to the generation mix. • Ambitious state-based renewable targets have yet to trigger meaningful long-term demand for renewables. ACT feed-in-tariff auctions
Slide 12: Market conditions supporting greater capital deployment
What market conditions would support greater levels of capital deployment in Australia’s Clean Energy Transition by Tilt Renewables? Key Ingredients Durable long term energy and climate change policy preferably with bi-partisan political support that enables greater renewables investment (current
Slide 13: Subsidisation of renewables expected to reduce as costs fall
Over time we would expect subsidisation of renewables to reduce as new entrant solar and wind costs continue to fall but not before stronger momentum in renewables investment is sustained 2017 Levelised cost of entry for new build technologies in Australia 250 200 150 100 50 0 Wind CCGT Solar Coal S
Slide 14: Tilt Renewables strategy
Tilt Renewables strategy • More than double current operating renewable generation capacity over the next 5 years (to 1,500 MW) and Goal • Position beyond 2020 with further wind and solar build if policy framework supportive Focus Australia New Zealand Consider Salt Creek Determine New build if Comp
Slide 15: Overview of key development projects
Overview of key development projects Nebo Well-positioned development pipeline Dysart • Development pipeline of circa 1,700MW in Australia: Waddi Rye Park – 450MW projects with environmental approvals, with a further 300MW subject Palmer NSW project to appeal Salt Creek Dundonnell Waverley • 530MW N
Slide 16: Growth opportunities
tir renewables Growth opportunities
Slide 17: Salt Creek Wind Farm - Overview
Salt Creek Wind Farm - Overview Salt Creek wind farm Minimal development risk site boundary • Fully consented • Supportive landowners, community and local council • 49km overhead connection into existing Terang substation • Current approvals: construction completed before Sep 2019 • Development appr
Slide 18: Salt Creek Wind Farm - Delivery
Indicative timeline Development Construction (12-15 months) Operations Mar-17 Apr-17 May-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Salt Creek Wind Farm - Delivery Key Activities – to achieve FID Procurement - Close out procurement process: Due diligence - EPC and long-term O&M contract wit
Slide 19: Dundonnell Wind Farm
Dundonnell Wind Farm • Dundonnell Wind Project (~300MW, VIC) • Fully consented with minor approvals required for connection Dundonnell wind farm • Supportive landowners, community and local council site boundary • Proposed connection via Mortlake PS with new off-site substation • Current approvals:
Slide 20: Future growth opportunities
Future growth opportunities Other wind development projects Other energy technology and commercial advances • Consenting of the Waverley wind farm in NZ • Tilt Renewables team maintains a watching brief on energy • NSW development consents technology advances including, but not limited to: • Reviewi
Slide 21: Potential Capital Raising Pathways to fund growth
Potential Capital Raising Pathways to fund growth Pathway #1 - Value add through unique delivery model Pathway #2 – Partner with low cost capital providers • Target “double digit” equity returns from new assets • Special Purpose Vehicle with own or institutional fund model • Target a material share
Slide 22: What can investors expect over next 12 months
What can investors expect over next 12 months Industry • Finkel Review on Security of Supply – formal report due Q2 CY2017 • Federal (Aust) Government review of energy and climate policy – report due second half CY2017 • Victorian Renewable Energy Target legislation and first tranche auction in seco
Slide 23: Tilt Renewables Thank you
Tilt Renewables Thank you 023
Slide 24: Appendix 1 - Renewable energy targets across Australia
APPENDIX 1 - Renewable energy targets across Australia • State Labour/Green policies are targeting further decarbonisation (beyond LRET) through renewable energy targets Energy (GWh) target New capacity State State energy fundamentals Tilt renewables development options proposed excess of LRET Queen
Slide 25: Appendix 2 - Overview of Tilt Renewables
APPENDIX 2 - Overview of Tilt Renewables – 582MW operational and 2200MW+ development Investment highlights PALMER Potential capacity • Tilt Renewables is a significant and established owner, operator and developer of wind farm assets, with an operating Up to 300MW (wind) WAVERLEY portfolio of 582MW
Slide 26: Disclaimer
Disclaimer This presentation is issued by Tilt Renewables Limited. While all reasonable care has been taken in the preparation of this presentation, Tilt Renewables Limited and its related entities, directors, officers and employees (collectively “Tilt Renewables”) do not accept, and expressly discl