Green EnergyHow does it work?

A presentation prepared by AGL

For further information:

Simon KelleyManager Carbon Policy and Regulationskelley@agl.com.au

Tim NelsonHead of Economic Policy and Sustainability tanelson@agl.com.au

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› Assume that you are an existing customer buying a standard electricity product

› Your retailer buys electricity from a range of generators at different times to supply you with electricity

› It all travels down the same poles and wires to reach your house

Summary

» AGL Education Series – www.aglblog.com.au

» March 2010

» AGL Energy Limited

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› Now assume you buy 100% Green Power

› Your retailer will purchase all your electricity from a renewable generator.

› Because other customers may still be purchasing non renewable electricity, the actual electricity reaching your house may not be 100% renewable but your actions have resulted in your retailer buying more renewable and less conventional energy

Summary

» AGL Education Series – www.aglblog.com.au

» March 2010

» AGL Energy Limited

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Summary

› AGL Green Energy™ is the premium green product offered by AGL

› 100% sourced from Green Power

› Electricity is sourced from new (post-1997) renewable generators

› Eligible generation includes solar photovoltaic (PV), wind and biomass

› The product is Green Power accredited

» Green Power is the only national accreditation program for renewable energy

» it is overseen jointly by the States and Territories

» generators can create a REC for 1 MWh of renewable energy production

» retailers must surrender a REC for every MWh of energy sold as Green Power accredited electricity

› Therefore, RECs used to supply customers with Green Power cannot be used by AGL to meet its overall RET target (i.e. no ‘double dipping’)

» AGL Education Series – www.aglblog.com.au

» March 2010

» AGL Energy Limited