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## Investments 

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## Investing for the future 

AGL has acquired the rights to develop the Silverton Wind Farm in Broken Hill, which is scheduled to become the company’s first wind farm development in New South Wales. In Victoria, AGL has increased its 32.5% share of Loy Yang A Power Station to full ownership. The business is now called AGL Loy Yang. 

## Silverton Wind Farm 

In March 2012, AGL acquired all the shares in Silverton Wind Farm Holdings Pty Ltd, owner of the development rights for the Silverton Wind Farm. The Silverton Wind Farm is located near the township of Silverton, approximately 25km north west of Broken Hill, New South Wales. Silverton has a high quality wind resource with a wind speed of approximately 8 metres per second and a wind farm capacity factor of around 40%. 

The Silverton Wind Farm has development approval for 282 wind turbines in Stage 1 and concept approval for a further 316 wind turbines in subsequent stages to bring the site capacity up to 1,000 MW. Subject to electricity network capacity, AGL will develop up to 300 MW of generation capacity in Stage 1. 

Subject to market conditions, construction of the project could commence in 2014. 

## AGL Loy Yang 

In June 2012, AGL increased its ownership interest in the Loy Yang A power station and adjacent coal mine, from 32.54% to 100%. 

Loy Yang is Victoria’s largest power station, producing 30% of the State’s electricity requirement. Currently it has approximately 550 employees and up to 500 on-site contractors. It is one of the lowest cost generators in the National Electricity Market and will remain so even with the introduction of a price on carbon emissions. 

The acquisition of Loy Yang increases AGL’s owned or controlled generation capacity to 6,000 MW. 

The adjacent coal mine means that fuel supply costs are substantially locked in for the remainder of the power station’s operating life. High levels of operating reliability, coupled with low fuel costs and more than $1 billion of free carbon permits, will produce substantial future operating cash flows. 

In future years, the results from operating Loy Yang will be incorporated in AGL’s Merchant Energy business results. 

## ActewAGL 

ActewAGL is a 50/50 partnership between AGL and Actew Corporation, an ACT Government owned enterprise. Established in 2000, it was the first utility joint venture in Australia between a private company and a publicly owned enterprise. AGL holds a 50% interest in ActewAGL’s retail business. 

The ActewAGL retail partnership contributed an equity share of profits of $28.0 million for the year compared, with $29.8 million for the year prior. This slight decrease is attributed to lower electricity volumes that resulted from milder than anticipated temperatures during the year. This was partially offset by higher gas consumption. In light of continued competitive pressures, the partnership has delivered a sound full year performance. 

