Leaders in Remote and Clean Energy

Energy Developments Coober Pedy Renewable Hybrid Project Africa Australia Technology and Infrastructure Conference

Adelaide

CooberPedy

Keith Barker EDL Technology

Roghan Road Brisbane

Brown Plains

Oaky Creek German Creek Moranbah North

Belrose, Grange Ave Eastern Creek Lucas Heights

Beloconnen Mugga Lane

Glennies Creek Appin, Tower

Broadmeadows Berwick

Teralba

Brooklyn Corio

Wingfield

Springvale Clayton

Tahmoor

Pine Creek

McArthur River

Cannington

Coober Pedy

Yulara

Leonara

Laverton Sunrise Dam

Perth

Gascoyne Junction

Karratha

Warmun Halls Creek Bidyadanga

Djarindjin Beagle Bay

Broome

Ardyaloon Derby

Fitzroy Crossing Looma

Hill 50 Darlot Hill 60

Menzies

EDL – Market Leaders in Distributed Generation 933MW of distributed generation •  Remote Energy 355MW •  Waste Coal Mine Gas 269MW •  Landfill Gas 279MW •  Windfarm 30MW

!  Scale !  Diversified !  Long life assets !  Long dated contracts !  Blue chip counterparties !  Capability !  Continuing growth !  Well capitalised

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LFG (50% owned)

Greece 12MW

Ano Liossia

United States 103MW

Covel Gardens, Tessman Road, TX (x2)

Taylor County, GA

Nashville, TN

Lorain County, OH Carbon Limestone, OH

Ottawa County, OH Zion, IL

Sand Valley, AL KEY: Waste Coal Mine Gas Remote Energy LNG / CNG Landfill Gas Windfarm Office

Australia 747MW

United Kingdom 71MW

Poole

Ryton, Waverley Wood Sidegate Lane

Milton Keynes Bellhouse, Brazier Pitsea, Rainham Mucking, Barling

Jacks Gully Tamala Park

Red Hill

Kalamunda

Pecan Row, GA

Iris Glen, TN

Cullerin

EDL and Renewable Generation

Remote Hybrids •  Australia’s largest independent remote energy producer (>350MW) •  Owns and operates 29 projects in remote Australia - 27 years’ experience •  Fuel and technology agnostic with demonstrated record of adapting technology to meet customers’ requirements •  CPRH will demonstrate the application of renewables and EDL capability to our remote customers’ requirements:

‒  SAFE; RELIABLE; COST COMPETITIVE POWER •  The combination of:

‒  Reductions in technology unit cost, including storage ‒  Increase in utilisation of technology units ‒  Higher fossil fuel costs ‒  Increased incentives to RE; imposts on fossil fuel will result in COMPETITIVE renewable hybrids

Broader Interest •  In parallel EDL recently purchased the 30MW Cullerin Range wind farm •  Significant strategic initiative, extending our distributed generation portfolio and leveraging EDL capability •  We have complementary pipeline and network capability through our DUET sister companies •  We have strong appetite for further growth in mid scale grid connected solar and wind

"  We can manage offtake as part of our wider generation portfolio "  No third party PPA required "  EDL can finance, using existing corporate debt facilities (investment grade) and our balance sheet "  Existing operating assets and shovel ready development projects "  Majority equity ownership (up to 100%) "  EDL involvement positive for ARENA/ CEFC/ concessional finance 3

DUET Group of Companies

• DUET Group (ASX:DUE), owner of energy utilities in Australia with market capitalisation of ~$6.5b (Aug-16)

• DUET owns DBP, owner and operator of the Dampier to Bunbury Natural Gas Pipeline (DBNGP)

• DBP Development Group (DDG) is established as a vehicle for development of unregulated gas pipelines and associated infrastructure

• DDG and DBP share common resources, policies and procedures under Support Service Agreements (SSAs)

• DUET acquired EDL in October 2015 and further acquired Cullerin Range Wind Farm in July 2016

• Raised $1.92b in equity and over $2.4b of debt for asset acquisition and operation in the FY15/16

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Coober Pedy Renewable Hybrid – CPRH

Overview & Project History

•  EDL has owned and operated the existing diesel power station at Coober Pedy since 2004

•  CPRH is a MW scale; High penetration renewable fully integrated with existing diesel fuelled thermal generation.

•  Part funded under ARENA IRAR programme

•  5MW solar/wind plus enabling technologies to achieve ~ 70% diesel displacement over the year

Planning and Approval June 13 to March 16

•  Concept to customer June 13 # ARENA EOI # Feasibility# ARENA Application May 2014

•  EDL- ARENA Funding Agreement executed– July 14

•  Development Consent; ILUA; Key Supply contracts tendered; Land Tenure secured

•  New PPA EDL – DCCP; FID April 16

Construction Phase – UNDERWAY

•  Detailed designs being finalised

•  Site Works commence Aug/Sept 2016

•  Construction complete April 2017

•  Commissioning complete July 2017

•  Ongoing performance testing and refinement July 2017+

Operations Phase - 2017-2037 5

CPRH – Benefits and Demonstration Value

EDL believes CPRH will establish world benchmarks in large scale, remote, renewable penetration

It will expand the boundaries established by King Island (KIREIP) •  Larger Scale - twice the renewable generation capacity and larger load demonstrating scalability •  Diversity of renewables - quality of solar resource and diurnal diversity sees larger % of solar •  Diesel Off - Diversity enables > time diesel off (estimated to be 50% of year) with smaller battery •  Scalable modular enablers - more rapid deployment, less call on remote resources reducing the remote cost premium. •  Complex commercial structure - IPP; Local & State Govt; ARENA; 5 key supply contracts

Benefits to the Coober Pedy community •  Lower cost of power to the expected diesel only case, over the long term •  Substantial stability in future power cost – approx. 70% fixed cost enables long term planning •  Reduction in greenhouse emissions – 130000t over project life •  Community contributions to opal community and Traditional Owners •  Local jobs and services during construction

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Renewables are land hungry cf thermal generation •  Even in remote areas land tenure is multi layered •  At very least this involves process - TIME

Hybrids involve substituting capital for operating cost •  Requires common view on future costs of fuel including green

incentives and penalties. •  Capital investment very significant in context of local budget

of remote communities and most mines

Why now? •  RE cost expectations encourage deferral of investment •  ARENA IRAR addresses this today but in the future?

Local politics are more volatile than Federal •  !!!!!!

Lessons Learned

Oil Price since ARENA Funding Agreement

CPRH Component Locations

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Coober Pedy Resource and load characteristics

•  20 years of resource data - wind direction is very consistent

•  The wind in Coober Pedy is stronger at night, complementing the solar resource

•  Data from the wind mast installed in May 2014 has confirmed the modelled wind speeds

WindCharacteris2cs

ModelledIntegratedSupply–FeasibilityStage

Coober Pedy Renewable Hybrid

Existing Status: Customer: District Council of Coober Pedy (DCCP) Load: Contract Max. 3.4MW Recent Peak 3MW Average 1.4MW Equipment: 8* 490kW diesel engines

Project Plan Renewables fully integrated with existing diesel plant under single PPA. 70% reduction in diesel usage No change to existing diesel plant Cost: $39M (incl. pre FID costs, contingencies). ARENA funding $18.4M.

Component Description EPC Guarantee

Wind Turbine 2*2MW Senvion MM92 Senvion Availability; Power Curve

Solar PV 1MW First Solar fixed tilt UGL PV system output, PR Test

BESS 1MW/500MWh Lithium Ion Toshiba / UGL Specific performance over state of charge range and 80% at end of warranty

Integration 2*850kVA Hitzinger DUPS 3MW Dynamic Resistor; Integration Control System

} }Hydro Tasmania }

6 month performance test demonstrating achievement of designed diesel displacement

BOP Power line wind & solar # existing power station site; switchboard

UGL

CPRH PPA Parties: EDL & DCCP Term: 20Years from project completion (expected July 2017)

EDL Obligations: Renewable Energy Guarantee Annual Actual vs Target Renewable % based on 10minute model with actual load; solar and wind inputs. Bonus / Penalty applies

Power Supply Reliability

Power Quality

No material change to existing PPA for outages No change to existing PPA Voltage Frequency etc. Penalties apply

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Coober Pedy Power Generation Key Performance Factors

Component

Load & renewable contribution

Annual Load: 11,800 MWh Total renewable generation: 16,500 MWh Renewable “spilled”: 6,500 MWh – 42% of RE generation - opportunity for storage System losses: 1,400 MWh – 11 % of total generation Net renewable contribution: 70%

Wind Average wind speed : 7.3 m/s Capacity Factor: ~ 41% Gross Annual Generation: 14,400 MWh

Solar PV Capacity Factor AC: 24.5% Gross Annual Generation: 2,150 MWh

BESS Annual Discharge: 142 MWh Note: Battery used for intermittency control not storage

Changes From original Scope

At Feasibility: At FID: Diesel penetration very similar whether 4/1 or 3 /2 combination. Following tender relative cost of wind and solar favoured additional wind (limited wind turbine sizes).

Wind 3 MW 4 MW

Solar 2 MW 1 MW

Battery 1MW / 250kWh 1.5 MW peak

1MW / 500kWh 1.5 MW peak

Specification modified to ensure required performance will be achieved at end of life (extended long warranty)

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General Site location

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Coober Pedy landscape

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QUESTIONS