Co-location of wind and solar

Large Scale Solar Conference

19 July 2016

Frank BolandDevelopment Team Leader

Agenda Arial Bold 28pt

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• Infigen Overview

• Why investigate co-location

• Challenges of Co-location

• Infigen’s experience with co-location

§ Walkaway Wind Farm

§ Capital Renewable Energy Precinct

§ Sites in the US

• Questions

Agenda

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Infigen Energy overview

• Largest owner of wind energy capacity in Australia, owning and operating over 556MW of wind energy

• Development pipeline of over 1200MW of wind and solar PV projects with planning approvals

• Development, asset management and energy markets capabilities

• Sydney HQ; ASX listed (ASX:IFN)

• Market Capitalisation: $915m

• Recently announced the sale of US operating wind business and US solar PV development pipeline

Australian Wind Farm Owners (operating MW)1

1. Ecogeneration and company Websites (2015)

Infigen Energy14%

Trustpower9%

AGL8%

Hydro Tas8%

Pacific Hydro8%Acciona

6%Malakoff

5%

UBS IIF/REST5%

Meridian5%Goldwind/Jingeng

4%

Infrastructure Capital Group

4%

Energy Infrastructure Investments

3%

Wind Prospects3%

Banco Santander/BlueN

RG3% Mitsui

3%Others13%

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Major Australian Assets

CAPITAL, NSWInstalled Capacity 140.7MWCapacity Factor 36%Completed Nov 09

LAKE BONNEY, SALB1Installed Capacity 80.5MWCapacity Factor 28% Completed Mar 05

LB2Installed Capacity 159.0MWCapacity Factor 30%Completed Sep 08

LB3Installed Capacity 39.0MWCapacity Factor 31%Completed Jun 10

ALINTA, WAInstalled Capacity 89.1MWCapacity Factor 44%Completed Jan 06

WOODLAWN, NSWInstalled Capacity 48.3MWCapacity Factor 39%Completed Oct 11

Australia's leading specialist renewable energy developer and operator

Introduction to co-locating wind and solar

• ‘Greenfield’ – new development of complimentary renewable technologies (eg. Walkway 2)

• ‘Brownfield’ – retrofit (add solar to existing wind eg. CREP).

• Generation is typically exported via a shared substation.

• Australia has a huge potential for greenfield and brownfield development co-location opportunities.

• AECOM has conducted a study into the potential for ARENA on renewable energy co-location in Australia.

Capital Renewable Energy Precinct

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Co-location of technology for synergistic generation and overall cost reductions

Motivation for co-location wind and solar

• Shared CAPEX costs

§ Development costs, e.g. environmental studies

§ Civil works, e.g. roads, substation, offices

§ Connection costs

• Shared OPEX costs

§ Shared labour force e.g. site manager

§ Administrative efficiencies

§ Availability of land

• Profile ‘firming’

§ Mitigation of intermittency and variability

§ Efficient use of connection capacity (improved capacity factor of connection point)

• Community engagement

§ Solar PV typically less polarising and mixed technology demonstrates neutrality towards renewable energy technology types.

§ Trust in proponent6

Boosting generation and reducing costs

Challenges for co-location wind and solar

Capital Solar Farm (artist’s impression)

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The case for co-location is highly site specific

• Wind and solar resource not necessarily well correlated (both diurnal profile and resource)

• Network curtailment – if both technologies are operating at capacity at the same time

• Topography – flat sites suit solar, whereas wind is typically on ridgelines

• For brownfield sites – contract re-negotiation can be complicated

• Shading losses, particularly if topography limits location of solar

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Geraldton, WA

Source: AECOM (2016) from ARENA website

Infigen’s sites – Walkaway Wind Farm

Source: Infigen

• One of the top prospects in the AECOM a desktop study for ARENA

• Synergy of wind and solar resource

• Wind profile fights the “duck curve”

• Suitable topography

• Better use of connection point

• Shared site management team

• Developed relationship with community

Infigen’s sites – Capital Renewable Energy Precinct

• Capital Renewable Energy Precinct:

§ Capital Wind Farm

§ Woodlawn Wind Farm

§ Capital East Solar Demo

§ Capital Solar Farm

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Bungendore and Tarago, NSW

Ø Profile synergy – solar boosts daytime and morning production

Ø Existing substation capacity

Ø Shared site management

Ø Developed relationship with community

Ø Environmental studies largely transferable

a

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WindFarmA(100MW)AverageGeneration

January Summer (ex.Jan) Autumn Winter Spring Average Annual

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25.00

30.00

SolarFarmA(25MW)AverageGeneration

January Summer (ex.Jan) Autumn Winter Spring

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Combined(Wind+Solar)AverageGeneration

January Summer (ex.Jan) Autumn Winter Spring

PREMIUMvsTWA January Summer(ex.Jan) Autumn Winter Spring

Peak Off-peak Peak Off-peak Peak Off-peak Peak Off-peak Peak Off-peak

DWA(WindFarmA) -2.73 -0.93 -0.98 -1.00 -0.16 -0.59 0.32 -0.23 0.23 -0.50

DWA(SolarA) 5.14 5.69 1.29 4.23 -0.68 1.64 -3.52 0.08 -10.27 2.05

DWA(Wind+Solar) -0.63 -0.40 -0.35 -0.56 -0.30 -0.42 -0.58 -0.21 -2.69 -0.26

ARAGONNE WIND/SOLARLocation • 35 km SW of Santa Rosa, (New Mexico, US)

Connection • Guadalupe substation via a 138 kV generation tie line that supplies Aragonne Wind Project

Capacity • 40MW - 113,457 MWh, 80MW – 226,914 MWh (single-axis tracking , poly-Si)

• 90 MW Wind Capacity (90 x 1MW Mitsubishi WTG)

Planning • There is no local permitting or zoning process for the solar project. Fatal flaw, biological, and cultural surveys completed with no major findings.

Offtake • TBC, Targeting New Mexico state auctions.

CAPROCK WIND/SOLAR

Location • 15 km S of San Jon, (New Mexico, US)

Connection • Norton 115kV substation via a 115 kV easement that supplies Caprock Wind Farm

Capacity • 25 MW Solar PV and 80 MW Wind Capacity (80 x 1MW Mitsubishi WTG)

Status • Under construction and owned by Duke Energy

Offtake • Wind: Xcel Energy’s Southwestern Public Service Company

• Solar: Western Farmers Electric Cooperative (WFEC) under a 25-year agreement

Experience of co-location in the USA

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Questions

Disclaimer

This publication is issued by Infigen Energy Limited (“IEL”), Infigen Energy (Bermuda) Limited (“IEBL”) and Infigen Energy Trust (“IET”), with Infigen Energy RE Limited (“IERL”) as responsible entity of IET (collectively “Infigen”). Infigen and its related entities, directors, officers and employees (collectively “Infigen Entities”) do not accept, and expressly disclaim, any liability whatsoever (including for negligence) for any loss howsoever arising from any use of this publication or its contents. This publication is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the content of the information. The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained herein and should conduct its own due diligence and other enquiries in relation to such information. The information in this presentation has not been independently verified by the Infigen Entities. The Infigen Entities disclaim any responsibility for any errors or omissions in such information, including the financial calculations, projections and forecasts. No representation or warranty is made by or on behalf of the Infigen Entities that any projection, forecast, calculation, forward-looking statement, assumption or estimate contained in this presentation should or will be achieved. None of the Infigen Entities guarantee the performance of Infigen, the repayment of capital or a particular rate of return on Infigen Stapled Securities. IEL and IEBL are not licensed to provide financial product advice. This publication is for general information only and does not constitute financial product advice, including personal financial product advice, or an offer, invitation or recommendation in respect of securities,by IEL, IEBL or any other Infigen Entities. Please note that, in providing this presentation, the Infigen Entities have not considered the objectives, financial position or needs of the recipient. The recipient should obtain and rely on its own professional advice from its tax, legal, accounting and other professional advisers in respect of the recipient’s objectives, financial position or needs. This presentation does not carry any right of publication. Neither this presentation nor any of its contents may be reproduced or used for any

other purpose without the prior written consent of the Infigen Entities.

IMPORTANT NOTICENothing in this presentation should be construed as either an offer to sell or a solicitation of an offer to buy Infigen securities in the United States or any other jurisdiction.Securities may not be offered or sold in the United States or to, or for the account or benefit of, US persons (as such term is defined in Regulation S under the US Securities Act of 1933) unless they are registered under the Securities Act or exempt from registration.

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