AGL Energy Limited Enters into Conditional Arrangements to Build Macarthur Wind Farm in South-West Victoria

Following the proposed changes announced by the Federal government in the Renewable Energy Target (RET) scheme, AGL Energy Limited has entered into conditional arrangements for building the Macarthur Wind Farm located in south-west Victoria.

AGL Energy Limited and Meridian Energy Limited, one of the largest energy companies in New Zealand, will construct the Macarthur Wind Farm under a joint venture. The entire energy produced by the wind farm and its associated renewable energy certificates will be taken by AGL.

The contractual arrangements require the approval of the Boards of both the companies and are subject to several conditions precedent. One of the main considerations for the Board of AGL to approve this transaction will depend on the final outcome of the legislation related to the RET scheme.

The installed capacity of the Macarthur Wind Farm will be 365 MW with a total of 174 Suzlon S88 turbines. The wind farm will generate about 945 GWh of power per annum. The approximate time frame for the construction of the wind farm is approximately 3 years and will commence after the conditions precedent are satisfied.