AGL Energy Limited (AGL) announced today that it has been selected as the renewable energy supplier for South Australia’s new 100 gigalitre per annum desalination plant under construction at Port Stanvac, south of Adelaide.

The contract is for a term of 20 years with an annual requirement of approximately 500GWh of electricity and associated renewable energy certificates.

AGL will satisfy the South Australian Government’s requirement that the plant be powered by 100% renewable energy from its existing South Australian generators accredited under the GreenPower Program and from projects in South Australia either under construction or in its development pipeline.

On 30 July, AGL announced that it had secured the energy supply contract for Victoria’s $3.5 billion desalination plant to be constructed near Wonthaggi. The contract for that project is 27 years with an annual requirement of up to 860GWh of electricity and associated renewable energy certificates.

To satisfy the Victorian Government’s requirement that the desalination plant’s energy needs be offset by an expansion in renewable energy projects, AGL has committed to the construction of the Oaklands Hill wind farm in south west Victoria to add to its portfolio of renewable assets which will supply the Victorian desalination plant. Construction will commence in October.

AGL Managing Director Michael Fraser said that AGL’s dual success in being awarded the contracts for these two vital infrastructure projects underlined the company’s vision and leadership in renewable energy generation.

“These projects, with their large energy requirements and long durations, create cer tainty of return for AGL. We now have firm price for renewable energy supply contracts consistent with our long term view of energy pricing,” Mr Fraser said.

“We will be providing renewable energy to these projects with a combined wind generation capacity of more than 540MW. This demonstrates that AGL’s long term strategic view of renewable energy pricing is the right one.”

“As a direct result of these successes, and the recent passage of the Renewable Energy Target (RET) legislation, we are well placed to capitalise on the work already undertaken to position AGL as a leader in renewable energy.”

AGL is Australia’s largest private owner, operator and developer of renewable generation with more than $2.3 billion worth of accredited renewable projects either built or under construction and another $2 billion in the portfolio of development opportunities (with approximately 2,500MW under development consideration). This portfolio is market leading, providing strategic depth and optionality.

AGL’s Renewable Growth Pipeline:

Project Nominal Capacity
Location Project Status
Bogong Hydro 140 Victoria - Alpine Region Commissioning
Werribee Biogas Victoria - Werribee  Stage 3 Development 
Hallett 2  71  South Australia - Hallett  Under Construction 
Hallett 4  132  South Australia - Hallett  Under Construction 
Oaklands Hill  67 Victoria - West  Construction October 2009 
Macarthur  330  Victoria - West  Final pre-commitment 
Hallett 3  80  South Australia - Hallett In Development 
Hallett 5  50  South Australia - Halllett  Permitted 
Coopers Gap  300  Queensland - Kingaroy  Landowner agreements in place 
Barn Hill 130  South Australia - Red Hill  Permitted 
Crows Nest  150  Queensland - Toowoomba  Permitted
Ben Lomond 150  NSW - Armidale  Landowner agreements in place 
Other  4 projects totalling ~720     

About AGL

AGL is Australia's largest integrated renewable energy company and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on over 170 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has Australia's largest retail energy and dual fuel customer base. AGL has a diverse power generation portfolio including base, peaking and intermediate generation plants, spread across traditional thermal generation as well as renewable sources including hydro, wind, landfill gas and biomass. AGL is Australia's largest private owner and operator of renewable energy assets and is looking to further expand this position by exploring a suite of low emission and renewable energy generation development opportunities.