Our experience in wind power in Australia · Acciona is a pioneering company in Australia with presence since 2002 and major projects in renewable energies, water services and infrastructure

Maite Santos

Commercial Operations

Business Development, ACCIONA Energía

Investment opportunities in the wind power sector in Australia

Asociación Empresarial Eólica

Madrid, November 21st, 2013

ACCIONA Energía Our experience in wind power in Australia

Index

1. ACCIONA Energy, world leader in renewables

2. ACCIONA’s presence in Australia

3. Our projects in wind power

4. Market framework in Australia

5. Conclusions

2

Sales

€2,107m

EBITDA

€1,125m

Owned capacity

8,491 MW

Production

20.4 TWh

International presence

19 countries

Workforce

2,466

Data at 31.12.2012 except owned capacity at 30.09.2013

3

ACCIONA ENERGIA: OUR EXPERIENCE IN AUSTRALIA . ACCIONA ENERGY, WORLD LEADER IN RENEWABLES

ACCIONA Energy’s key figures

4


Major presence in five technologies

Company owned

Customers

Total

314

1

315

CSP

49

67

116

Photovoltaic

912

912

Hydro

57

57

Biomass

7,159

1,472

8,631

Wind Total

8,491

1,540

10,031

Data at 30.09.2013. The company also owns 9 MW in cogeneration

5


A global company

Power plants in service Projects under construction or awarded Avanced-development projects Industrial plants

Canada 181

USA 692

Wind CSP

628 64

Mexico 557

Costa Rica

Brazil

Chile

Portugal 165

Wind PV

119 46

Spain 5,974

Wind Hydro CSP Biomass PV Cogeneration

4,743 912 250

57 3 9

Germany 150 Poland 71

Hungary 24

Croatia 30

Greece 48

Italy 156 India 86

South Korea 61

Morocco South Africa

Australia 305

Data at 30.09.2013 in MW

6


The only company with presence in all the value chain

Project development

Engineering & construction

Manufacture of wind turbines

Production Management & sale of energy

Cross knowledge, proven reliability and customized/tailored solutions are our unique capabilities

7

ACCIONA ENERGIA: OUR EXPERIENCE IN AUSTRALIA . ACCIONA’S PRESENCE IN AUSTRALIA

Contributing to Australia’s development since 2002

ADELAIDE DESALINATION PLANT

MUNDARING WTP

Design-Build-O&M (35 years). Capacity: 250,000 m3/day.

One of the biggest desalination plants in the world.

Capacity: 300,000 m3/day.

AGUA ACCIONA AGUA (Water)

ACCIONA ENERGY

Three wind farms which produce enough clean energy for 205,000 Australian homes

304.5 MW IN WIND POWER

LEGACY WAY TUNNEL

AU$1.5bn project designed, built and operated by AI for 10 years as lead participant (under construction)

Direct high-speed connection between East and West Brisbane

ACCIONA INFRASTRUCTURE

• More than 500 employees in the country

• AEO - 73 skilled employees

• AEO - headquarters in Melbourne

• AEO - over AS$600m invested

• Global provider of sustainable solutions in energy, water and infrastructure

8

ACCIONA ENERGIA: OUR EXPERIENCE IN AUSTRALIA . OUR PROJECTS IN WIND POWER

More than 300 MW already operational in three states

GUNNING WIND FARM

31 AW1.5 (46.5 MW)

WAUBRA WIND FARM

128 AW1.5 (192 MW) CATHEDRAL ROCKS WIND FARM

33 Vestas V80 (66 MW)

9


Cathedral Rocks Wind Farm. 66 MW (2005)

• First AEO wind farm (Sept. 2005)

• 50:50 JV Energy Australia

• PPA with Energy Australia

• Constructor: John Holland

• Remote and exposed location on the Eyre Peninsula (South Australia)

• High level of community support, with considerable local contracting during construction

Cathedral Rocks wind farm (66 MW) South Australia.

11


Waubra Wind Farm. 192 MW (2009)

• Biggest AEO’s wind farm

• Operational since July 2009

• PPA with Origin Energy

• Constructor: Leighton

• AWP technology (AW1500)

• Construction successfully carried out with minimal interference to the over 35 separate farms on which it is located

Waubra wind farm (192 MW). Victoria.

13


Gunning Wind Farm. 46.5 MW (2011)

• Operational since March 2011

• PPA with Origin Energy

• Constructor: CATCON

• AWP technology (AW1500)

• Construction successfully carried out with minimal local disturbance despite restricted site access and steep terrain.

Gunning wind farm (46.5 MW). NSW

15


Building community support

• Community involvement is crucial in Australia since the very beginning of the project

• Transparency, closeness and local added-value are good tools to build community support

• Community benefit fund focusing on environment, education, sport and culture carried out in Waubra and Gunning areas

• Targeted sponsorship program in projects under development

16


Global remote operation and maintenance

• 9,652 MW operated for AE and customers in over 360 facilities

• 8,169 MW in 259 wind farms with 6,855 turbines

• 24 hrs/7 day control room in Australia providing centralized support to both the staff on site and external bodies

• Global Control Center (CECOER) in Spain with delegations in Australia, US and Mexico

17


ACCIONA Energy wind power portfolio

Additional portfolio

• Up to 250 MW in earlier stages of development in high wind resource sites in South Australia and Queensland which will be developed as market conditions dictate

Mt Gellibrand (VIC) 189W 63 x AW 116

Berrimal (VIC) 24MW 16 x AW82

Mortlake South (VIC) 76.5MW 51 x AW82

AEO additional wind portfolio (MW)

144

South Australia

Queensland

105

18


We also provide EPC services in wind and solar

• EPC Services to Clients Our experience allows us to anticipate the industry’s needs and provide superior EPC services to clients.

• ACCIONA Energy has been shortlisted for a number of wind and solar developments, reflecting the competitiveness of our offer.

• ACCIONA Energy has been awarded the EPC and WOM contract for the 20-MW Royalla Solar Farm (Fotowatio) in the Australian Capital Territory. Construction is currently underway.

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ACCIONA ENERGIA: OUR EXPERIENCE IN AUSTRALIA . MARKET FRAMEWORK IN AUSTRALIA

Australia’s wind project ownership overview

Infigen 556.6MW

Meridian 280MW

AEO 271.5MW Pacific

Hydro 260MW

Hydro Tas

243MW

AGL 210MW

Infigen

Meridian

AEO

Pacific Hydro

Hydro Tasmania & Shenhua Clean Energy

AGL

UBS & REST

Infrastructure Capital Group

EnergyAustralia

Energy Infrastructure Investments

TrustPower

Palisade Investment

APA Group

RATCH Australia

Guohua Energy Investment & Hydro Tasmania

Challenger Group Pty Ltd

Verve Energy & Energy Infrastructure Trust

Eurus Energy

International Power

Origin Energy

Verve Energy

CGN Wind Energy Ltd

Advanced Energy Resources

Regional Wind Farms

Eraring Energy

Community Approx 3000 MW total installed

Other: 1,200 MW

AEO: 3rd wind developer in Australia, 1st international


Market and RET targets

• Three main vertically integrated electricity retailers, controlling approx. 80% of NEM retail market:

Origin AGL Energy Australia

Market participants

• Developers largely dependent on them for PPAs

• Approx. 10 smaller (2nd and 3rd tier retailers), albeit with limited demand for PPAs

RET targets

Renewable Energy Target 2020 (by State and capacity in MW)

State Current (MW)

Remaining (MW)

2020 target (MW)

Victoria 1,685 2,700 4,385

S. Australia 1,206 600 1,806

NSW 4,569 4,650 9,219

Tasmania 2,424 500 2,924

Queensland 683 2,000 2,683

N. Territory 3 50 53

W. Australia 612 500 1,112

TOTAL 11,200 11,000 22,200

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Conclusions

From our experience, building community support is essential to carry out projects in renewables, with transparency and local added-value as useful tools

Acciona is a pioneering company in Australia with presence since 2002 and major projects in renewable energies, water services and infrastructure

Renewable developers are very dependent on a small group of utilities for PPAs purposes. The renewable support schemes may change with new Gov.

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- Investors require off-take agreements and have interest in post-construction Recent transactions dominated by Asian investors

Our experience in wind power in Australia · Acciona is a pioneering company in Australia with presence since 2002 and major projects in renewable energies, water services and infrastructure

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