Origin adds wind power to supply portfolio

Australian
23/01/2008 Page: 35

AUSTRALIA'S second largest energy retailer, Origin Energy, is to build its first owned and operated wind energy electricity-generating station in response to rising demand for green energy. Origin Energy, which already buys about 180 megawatts of electricity generated by third-party wind energy operators, has decided to balance its supply portfolio by direct investment in wind energy.

In a deal with German renewables and wind generation facility developer Epuron Pty Ltd, Origin Energy will pay for a 30mW wind energy station at Cullerin Range about 30km from the NSW city of Goulburn. This will involve an initial investment of between $75 million and $90 million and will be Origin Energy's first generation investment of any type in NSW. Origin Energy has interests in a total of 870mW of installed capacity in Australia, virtually all of which is gas-fired peaking plant.

Origin Energy has also secured development rights to two more 30mW Epuron Pty Ltd projects in NSW, at Conroy's Gap near Yass and at Snowy Plains near Berridale. It has also entered a strategic relationship with Epuron Pty Ltd, with an option for another 500mW of Epuron Pty Ltd sites. The company's chief operating officer, Karen Moses, said yesterday Origin Energy now had an option over a strategic and economically competitive pipe line of wind projects that Epuron Pty Ltd had identified, mainly in NSW.

The Epuron Pty Ltd deal means Origin Energy will build its own wind facilities for the first time, deepening its integration in this area,'' she said. "It provides Origin Energy with greater flexibility in managing our carbon, retail and generation portfolios.'' In addition to meeting the regulatory requirements for renewable energy the new federal Government has a 2020 target of 20 per cent renewables the announcement supported Origin Energy's 270,000 customers who chose to buy green electricity, Ms Moses said. This is about 9 per cent of Origin Energy's customer base.

Epuron Pty Ltd Australia executive director Andrew Durran said the three sites Origin Energy had rights to were among the best in NSW, with excellent wind resources and access to existing powerlines. When fully operational next year, the Cullerin Range plant, involving 15 wind turbines generating up to 30mW, would save more than 100,000 tonnes of carbon annually and supply up to 15,000 homes, he said.

In January last year, Epuron Pty Ltd and Macquarie Capital signed an agreement to develop finance and construct Australia's biggest wind farm, a 1000mW peak capacity plant at Silverton near Broken Hill in western NSW. The Silverton project is not part of the new relationship between Origin Energy and Epuron Pty Ltd.