AGL to defer appointment of contractor for the Silverton Wind Farm

AGL Energy Limited (AGL) announced today that it will defer the appointment of an Engineering, Procurement and Construction (EPC) contractor for the proposed Silverton Wind Farm located approximately 25km north west of Broken Hill, New South Wales.

The decision to defer the appointment is due to the ongoing uncertainty around the 2020 Renewable Energy Target, with another review of the scheme legislated to occur in 2014.

AGL has been conducting a tender for the EPC contracts to construct the proposed Silverton Wind Farm over recent months and although a strong field of contenders expressed interest in the project, AGL has decided not to appoint a preferred EPC contractor at this stage.

AGL will review its position to appoint a contractor for the wind farm during 2014.

AGL's Head of Power Development, Nigel Bean, spoke to the Silverton community on Wednesday, expressing AGL's disappointment in the need to defer the appointment of an EPC contractor, after working with the broader community over the past 15 months.

"This decision does not indicate reduced enthusiasm for the project. Silverton has a high quality wind resource, and remains one of the most attractive wind development projects in Australia," Mr Bean added.

AGL remains committed to the development of its solar plant projects at Nyngan and Broken Hill as part of the Solar Flagships Program. In the last seven years, AGL has invested over $3 billion dollars in renewable energy generation, making it the largest developer of renewable energy assets in Australia over that period.

About AGL

AGL is one of Australia's leading integrated renewable energy companies and is taking action toward creating a sustainable energy future for our investors, communities and customers. Drawing on 175 years of experience, AGL operates retail and merchant energy businesses, power generation assets and an upstream gas portfolio. AGL has one of Australia's largest retail energy and dual fuel customer bases. 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.