AGL lifts wind gear

Australian
Wednesday 1/4/2009 Page: 20

AGL Energy, Australia's biggest electricity and gas retailer, has agreed to buy 63 turbines from India's Suzlon Energy for a $341 million wind-power project in South Australia. AGL also has an engineering and construction agreement with Suzlon's Australian unit for the 132-MW Hallett 4 project, the Sydney-based company told the Australian Securities Exchange yesterday.

Suzlon EnergyAustralia also has options to build two other projects for AGL, which may get a discount on the orders. Australia has a target to boost power generated from renewable energy to 45,000 gigawatthours in 2020, from the existing 9500 GWh target in 2010, to help reduce greenhouse gases blamed for global warming. AGL said last month it expected to approve about $1.1 billion in wind - and gas-fired generation projects this year for construction to tap rising demand for cleaner fuel.

About $140 million of the cost for developing Hallett 4 would be incurred by June 30, AGL said in the statement. The company may decide to sell the project, while retaining ownership of the electricity output and renewable energy credits generated by the venture, it said. "A final decision on longterm ownership structure is anticipated during calendar year 2009," AGL said. One MW can power about 1000 Australian homes. AGL shares closed yesterday at 14.960c, up 7c.