Agl Energy Limited · ASX:AGL
Agl Energy — Australian Energy Week 2018
13 slides from Agl Energy's conference presentation, May 10, 2018
Slide 1: Investing in the future
Investing in the future How AGL is using innovation in financing models to help drive investment in new energy supply Brett Redman, CFO, AGL Energy Limited
Slide 2: AGL video link – AGL generation development
AGL video link – AGL generation development https://www.youtube.com/watch?time_continue=32&v=IyqDzq4qkE4 Australian Energy Week 2018 | NEXTGEN GENERATION 2
Slide 3: Policy certainty and financial innovation
The challenge: The question: Australia needs to replace its aging fleet with How can the market deliver on this low emission, low cost and reliable generation challenge? Policy certainty Financial The solution: innovation Development of new renewable and firming generation AGL continues to lead the
Slide 4: The RET and financial innovation will deliver on the LRET target
The RET and financial innovation will deliver on the LRET target … but what comes next? 2001: RET introduced 2009: RET increased to 41TWh 2015: LRET set to 33 TWh Approx. Policy certainty ~2% of 2020 generation ~20% of 2020 generation ~23.5% of 2020 generation LRET target 10 ,00 0 Financial 9,000 in
Slide 5: An innovative funding model that stimulated large-scale renewable development
An innovative funding model that stimulated large-scale renewable development • PARF was a major catalyst for unlocking renewable PARF commitment developments across the Australian market with a “new • $1 billion in renewable deal” to rebalance merchant risk and reward between energy developments re
Slide 6: Innovation in financing models has allowed projects to close
Innovation in financing models has allowed projects to close, attracting more investors to a growing sector Financial innovation creates a virtuous circle Growth in green bonds … a good proxy for rate of growth in investor interest 200 More More 150 financial projects Amount $ billion innovation clo
Slide 7: AGL has developed "wind firm" contracts for the contract market
AGL has developed “wind firm” contracts for the contract market - available since April 2018 Bundling non-dispatchable and dispatchable energy NON-DISPATCHABLE DISPATCHABLE ENERGY ENERGY ENERGY CONTRACT BROKER DISPATCHABLE ENERGY CONTRACT RETAILER Benefits: • Creates liquidity in the market • Assist
Slide 8: A colossal financing opportunity to support the transition to a low carbon future
A colossal financing opportunity to support the transition to a low carbon future Grid-scale storage is required for the full transition to Time-shifted solar example renewables 90,000 • Gas/hydro firming for renewables is a medium-term 80,000 solution 70,000 60,000 • Storage for time shifting energ
Slide 9: The National Energy Guarantee (NEG) has the potential to provide certainty
The National Energy Guarantee (NEG) has the potential to provide certainty for investment and drive innovation AGL supports a well designed NEG that helps drive down prices through investment in supply and provides certainty on emissions reductions. NEG should address the following concerns: • Cost
Slide 10: Innovative financial and market products and diverse development options
Innovative financial and market products … and a diverse, high quality range of potential development options Renewable project funding model PARF funding Wind firming product Currently trading PARF: Coopers Gap Powering Australian Renewables Fund Already underway and/or NEM re-investment: Barker In
Slide 11: About us
About us We operate the country’s largest electricity generation AGL is committed to portfolio, we’re its largest ASX-listed investor in renewable energy, and we have more than 3.6 million customer accounts. helping shape a Proudly Australian, with more than 180 years of experience, we have a respon
Slide 12: Contact
Contact James Hall General manager, Capital Markets P +61 2 9921 2789 M +61 401 524 645 jbhall@agl.com.au agl.com.au 131 245 Download the app agl.com.au/ community Chris Kotsaris Senior Manager, Investor Relations P +61 2 9921 2256 M +61 402 060 508 ckotsaris@agl.com.au Blathnaid Byrne Group Treasur
Slide 13: Important information
The information in this presentation: • Is not an offer or recommendation to purchase or subscribe for securities in AGL Energy Limited or to retain any securities currently held; • Does not take into account the potential and current individual investment objectives or the financial situation of in