PRESENTATION TO DEUTSCHE BANK RENEWABLE ENERGY ROUNDTABLE The - PDF document

8 September 2010 PRESENTATION TO DEUTSCHE BANK RENEWABLE ENERGY ROUNDTABLE The following presentation is being presented at the Deutsche Bank Renewable Energy Roundtable discussion in Melbourne today. ENDS For further information please contact: Rosalie Duff Head of Investor Relations & Media +61 2 8031 9901 +61 (0) 421 611 932 About Infigen Energy: Infigen Energy is Australia’s leading specialist renewable energy business. Infigen Energy has six wind farms in Australia with a total capacity of 550 MW as well as its Australian development pipeline. Infigen also owns and operates US and German wind energy businesses taking its aggregate wind energy business interests to 36 wind farms with a total capacity of 2,236 MW. Infigen’s US business comprises 18 wind farms with a capacity of 1,089 MW (ownership interest) and also includes the Bluarc asset management business. It is the largest independent portfolio of wind energy generating assets in the US. Infigen’s presence in Germany comprises 12 wind farms with a total installed capacity of 128.7 MW. Infigen is listed on the Australian Securities Exchange and has a market capitalisation of approximately A$0.5 billion. For further information please visit our website: www.infigenenergy.com

1 Deutsche Bank Renewable Energy Roundtable Discussion 8 September 2010

Agenda Agenda • Overview of Infigen Energy • Transition to Direct Operational Control • Deployment of Renewable Energy • Availability of Wind Energy Resources in Australia • Australia’s Renewable Energy Policy Landscape • Conclusions • Appendix Presenters: Miles George Managing Director Andrew George General Manager, Energy Markets For further information please contact: Rosalie Duff +61 2 8031 9901 rosalie.duff@infigenenergy.com 2

Infigen Energy Overview Australian Wind Farm Owners (operating MW) 1 • Operate over 2,100MW of wind energy generation globally Listed Peers Unlisted Peers • Largest owner of wind energy capacity in Australia 508 • Development, asset management and 260 257 225 173 30 energy markets capabilities in Australia 68 Infigen Pacific AGL Acciona Roaring TSI Origin • Own & operate a top 8 business in US wind Energy Hydro 40s energy industry US – Top eight wind farm owners by installed capacity (MW) 2 • Highly experienced US Bluarc asset management team Next Era 7,458 Iberdrola 3,225 • ASX listed (ASX:IFN) with market cap of 2,642 Horizon EDRP approx. $A500m+ Mid American 2,205 1,720 E.On 1,500 Invenergy 1,210 Edison Mission Group Infigen Energy 1,090 1. Clean Energy Council (2010) and company Websites. Excludes contracted capacity. 3 2. American Wind Energy Association: 2009 Annual Report

Major Australian Projects Australia's leading specialist wind energy and renewable energy developer and operator CAPITAL LAKE BONNEY 1 Location: Bungendore, NSW Location: South Australia Status: Operational November 2009 Status: Operational March 2005 Installed Capacity: 140.7MW Installed Capacity: 80.5MW Turbine: 67 Suzlon 2.1MW S88 Turbine: 46 Vestas V66 ALINTA LAKE BONNEY 3 Location: Western Australia Location: South Australia Status: Operational January 2006 Status: Operational June 2010 Installed Capacity: 89.1MW Installed Capacity: 39.0MW Turbine: 54 NEG Micon NM82 Turbine: 13 Vestas V90 LAKE BONNEY 2 WOODLAWN Location: South Australia Location: New South Wales Status: Operational September 2008 Status: Issued notice to proceed Installed Capacity: 159.0MW Installed Capacity: 42.0MW Turbine: 53 Vestas V90 Turbine: Suzlon 2.1MW S88 4

Agenda Agenda • Overview of Infigen Energy • Transition to Direct Operational control • Deployment of Renewable Energy • Availability of Wind Energy Resources in Australia • Australia’s Renewable Energy Policy Landscape • Conclusions • Appendix 5

Direct Operational Control Transition to direct operational control improves asset performance and return Traditional OEM 1 Arrangement Direct Operational Control • Alignment of owner KPI’s with service provider KPI’s • Misalignment of interests between owner and OEM service providers • Addresses major causes of lost production including • Initial control locked in via warranty provision – Response times to faults / turbine downtime • Asset performance driven and limited by contract – Fault diagnosis and trouble shooting provisions and targets – Supply chain delays • Focussed on availability warranty payments • Wind resource based availability target maximises • Compensation rarely keeps an asset “whole” performance • Time-based availability target drives suboptimal • Effective supply chain management eliminates extra turbine performance OEM margin on component parts • Locked into expensive supply chain • Retains benefit of OEM’s value contribution – Leverage technical expertise 1. Original Equipment Manufacturer of wind turbines – Resolution of repetitive failures over life of turbine – Collaboration on technical improvements Managing to warranty requirements Managing to optimise performance Downside Protection Upside Potential 6

Current Trends in O&M IFN is implementing direct control to improve asset performance and maintain effective cost control beyond initial warranty period Industry Dynamics • Wind industry continues transition toward conventional asset management practices beyond the OEM warranty period • 79 percent of global installed capacity remains under warranty with fixed lower O&M costs • Post initial OEM agreement period Turbine service and maintenance represent – approx. 30 - 50% of wind farm operating costs – OEM pricing up to 5 to 10 $/MWh more expensive than initial warranty period – Non-OEM service providers ensures competitive pricing Transition of IFN’s Portfolio • Assets continue to transition off initial OEM performance warranty, operation and maintenance agreements • The US business currently has 48% of assets remaining in OEM; reducing to 39% next year • The Australian Business currently has 84% of assets remaining in OEM; reducing to 67% next year Note: OEM represents “Original Equipment Manufacturer of wind turbines” 7

Asset Performance Demonstrated ability to outperform availability targets Cedar Creek Availability: Bluarc direct operational control (May 07 – Dec 09) • Direct control addresses the major causes of poor availability: 100 response times + effective 99 troubleshooting + parts supply 98 Availability % 97 96 95 94 93 Turbine BOP & Environment Total Turbines Excl. Cedar Creek Turbines at Cedar Creek 8

Agenda Agenda • Overview of Infigen Energy • Transition to Direct Operational control • Deployment of Renewable Energy • Availability of Wind Energy Resources in Australia • Australia’s Renewable Energy Policy Landscape • Conclusions • Appendix 9

Global Deployment of Renewable Energy Wind energy dominated installed renewable energy generation at the end of 2009 Installed Renewable Energy Capacity at the end of 2009 (GW) 60 53.4 52.5 50 40 36.2 GW 30 22.3 20 16.5 12.8 12.3 9.7 9.5 9.0 7.6 7.5 10 3.3 0 United China Germany Spain India Japan Rest of Italy France Brazil Canada United Australia States EU-27 Kingdom Wind Biomass & Waste Geothermal Solar Small Hydro Marine Source: PEW G20 Clean Energy Factbook (2009). Excludes large Hydro 10

European and US New Energy Installations Wind energy accounted for 39% of all new generation capacity in the US & Europe in 2009 New Energy Installation in Europe 1 – 2009 New Energy Installations in US 2 – 2009 2% 2% 3% 6% 5% 10% 9% 39% 43% 17% 39% 25% 25% Wind Gas Gas Wind PV Coal Coal Other Non-renewables Large Hydro, Biomass & Other Other Renewables Oil Nuclear 11 1. European Wind Energy Association: 2009 Industry Statistics 2. American Wind Energy Association: 2009 Annual report (% approximate)

Global Investment By Renewable Energy Type Global Wind Energy Investment accounted for 56% of total renewable energy investment in 2009, up from 45% in the previous year New Investment by Technology (2009, $bn) 1 $67 Wind $24 Solar $11 Biomass & Waste Biofuels $7 $4 Energy Smart Technologies Small Hydro $4 Geothermal $2 Low Carbon Services $0.3 Marine $0.2 1. United Nations Environment Program (ENEP), Global Trends in Sustainable Energy Investment (2010) 12

Agenda Agenda • Overview of Infigen Energy • Transition to Direct Operational control • Deployment of Renewable Energy • Availability of Wind Energy Resources in Australia • Australia’s Renewable Energy Policy Landscape • Conclusions • Appendix 13

Australian Wind Energy Resource Straight forward connections in high wind resource areas are becoming scarce Source: Department of the Environment, Water, Heritage and the Arts Augmentation of the grid will be required to efficiently satisfy LRET 14