renewable energy asia-pacific data monitor

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Australia - Renewable Energy 0125 - 0668 - 2010

Datamonitor. This profile is a licensed product and is not to be photocopied Page 1

INDUSTRY PROFILE

Renewable Energy in

Australia

Reference Code: 0125-0668

Publication Date: April 2011


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EXECUTIVE SUMMARY



EXECUTIVE SUMMARY

Market value

The Australian renewable energy market shrank by 0.7% in 2010 to reach a value of $2.2 billion.

Market value forecast

In 2015, the Australian renewable energy market is forecast to have a value of $3.3 billion, an increase of

50% since 2010.

Market volume

The Australian renewable energy market grew by 6.8% in 2010 to reach a volume of 18.4 billion kWh.

Market volume forecast

In 2015, the Australian renewable energy market is forecast to have a volume of 22.9 billion kWh, an

increase of 24.6% since 2010.

Market segmentation

Australia accounts for 3.9% of the Asia-Pacific renewable energy market value.

Market rivalry

Rivalry is moderated by diversification amongst market players here, with some also selling electricity

generated from nuclear or fossil fuels.


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CONTENTS



TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 6

Market definition 6

Research highlights 7

Market analysis 8

MARKET VALUE 9

MARKET VOLUME 10

MARKET SEGMENTATION 11

COMPETITIVE LANDSCAPE 12

LEADING COMPANIES 14

AGL Energy Limited 14

Delta Electricity 20

Origin Energy Limited 22

MARKET FORECASTS 26

Market value forecast 26

Market volume forecast 27

MACROECONOMIC INDICATORS 28

APPENDIX 30

Methodology 30

Industry associations 31

Related Datamonitor research 31

Disclaimer 32

ABOUT DATAMONITOR 33

Premium Reports 33

Summary Reports 33

Datamonitor consulting 33


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CONTENTS



LIST OF TABLES

Table 1: Australia renewable energy market value: $ billion, 200610 9

Table 2: Australia renewable energy market volume: billion kWh, 200610 10

Table 3: Australia renewable energy market segmentation: % share, by value, 2010 11

Table 4: AGL Energy Limited: key facts 14

Table 5: AGL Energy Limited: key financials ($) 17

Table 6: AGL Energy Limited: key financials (A$) 17

Table 7: AGL Energy Limited: key financial ratios 18

Table 8: Delta Electricity: key facts 20

Table 9: Origin Energy Limited: key facts 22

Table 10:

Origin Energy Limited: key financials ($) 24

Table 11: Origin Energy Limited: key financials (A$) 24

Table 12: Origin Energy Limited: key financial ratios 24

Table 13: Australia renewable energy market value forecast: $ billion, 201015 26

Table 14: Australia renewable energy market volume forecast: billion kWh, 201015 27

Table 15: Australia size of population (million), 200610 28

Table 16: Australia gdp (constant 2000 prices, $ billion), 200610 28

Table 17: Australia gdp (current prices, $ billion), 200610 28

Table 18: Australia inflation, 200610 29

Table 19: Australia consumer price index (absolute), 200610 29

Table 20: Australia exchange rate, 200610 29


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CONTENTS



LIST OF FIGURES

Figure 1: Australia renewable energy market value: $ billion, 200610 9

Figure 2: Australia renewable energy market volume: billion kWh, 200610 10

Figure 3: Australia renewable energy market segmentation: % share, by value, 2010 11

Figure 4: AGL Energy Limited: revenues & profitability 18

Figure 5: AGL Energy Limited: assets & liabilities 19

Figure 6: Origin Energy Limited: revenues & profitability 25

Figure 7: Origin Energy Limited: assets & liabilities 25

Figure 8: Australia renewable energy market value forecast: $ billion, 201015 26

Figure 9: Australia renewable energy market volume forecast: billion kWh, 201015 27


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MARKET OVERVIEW



MARKET OVERVIEW

Market definition

The renewable energy market consists of the consumption of electricity generated via Geothermal, Solar,Wind and Hydroelectric means, as well as through wood and waste combustion. Data are reported as net

consumption as opposed to gross consumption. Net consumption excludes the energy consumed by the

generating units. The volume of the market is calculated as the volume of electricity consumed (in billions

of kilowatt hours, kWh), and the market value has been calculated according to average annual

renewable electricity prices. Any currency conversions used in the creation of this report have been

calculated using constant 2010 annual average exchange rates.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New

Zealand, Singapore, South Korea, Taiwan, and Thailand.


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MARKET OVERVIEW



Research highlights

The Australian renewable energy market had total revenue of $2.2 billion in 2010, representing a

compound annual growth rate (CAGR) of 6.9% for the period spanning 2006-2010.

Market consumption volumes decreased with a CARC of -1% between 2006-2010, to reach a total of 18.4

billion kWh in 2010.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 8% for the five-year

period 2010-2015, which is expected to drive the market to a value of $3.3 billion by the end of 2015.


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MARKET OVERVIEW



Market analysis

Over recent years the Australian renewable energy market has fluctuated widely, experiencing annualized

rates of growth and decline. After gaining momentum in 2011, the market is expected to sustain strong

growth up to and including 2015.

The Australian renewable energy market had total revenue of $2.2 billion in 2010, representing a

compound annual growth rate (CAGR) of 6.9% for the period spanning 2006-2010. In comparison, the

Chinese and Japanese markets declined with compound annual rates of change (CARCs) of -1.7% and -

0.5% respectively, over the same period, to reach respective values of $20.5 billion and $16.5 billion in

2010.

Market consumption volumes declined with a CARC of -1% between 2006-2010, to reach a total of 18.4

billion kWh in 2010. The market's volume is expected to rise to 22.9 billion kWh by the end of 2015,

representing a CAGR of 4.5% for the 2010-2015 period.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 8% for the five-yearperiod 2010-2015, which is expected to drive the market to a value of $3.3 billion by the end of 2015.

Comparatively, the Chinese and Japanese markets will grow with CAGRs of 8.6% and 2.9% respectively,

over the same period, to reach respective values of $31 billion and $19.1 billion in 2015.


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MARKET VALUE



MARKET VALUE

The Australian renewable energy market shrank by 0.7% in 2010 to reach a value of $2.2 billion.

The compound annual growth rate of the market in the period 200610 was 6.9%.

Table 1: Australia renewable energy market value: $ billion, 200610

Year $ billion A$ billion billion % Growth

2006 1.7 1.9 1.3

2007 2.0 2.2 1.5 15.6%

2008 1.9 2.1 1.5 (2.2%)

2009 2.3 2.5 1.7 16.3%

2010 2.2 2.4 1.7 (0.7%)

CAGR: 200610 6.9%

Source: Datamonitor D A T A M O N I T O R

Figure 1: Australia renewable energy market value: $ billion, 200610



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MARKET VOLUME



MARKET VOLUME

The Australian renewable energy market grew by 6.8% in 2010 to reach a volume of 18.4 billion kWh.

The compound annual rate of change of the market in the period 200610 was -1%.

Table 2: Australia renewable energy market volume: billion kWh, 200610

Year billion kWh % Growth

2006 19.1

2007 18.6 (2.6%)

2008 17.8 (4.6%)

2009 17.2 (3.4%)

2010 18.4 6.8%

CAGR: 200610 (1.0%)


Figure 2: Australia renewable energy market volume: billion kWh, 200610



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MARKET SEGMENTATION



MARKET SEGMENTATION

Australia accounts for 3.9% of the Asia-Pacific renewable energy market value.

China accounts for a further 35.6% of the Asia-Pacific market.

Table 3: Australia renewable energy market segmentation: % share, by value, 2010

Category % Share

China 35.6

Japan 28.8

Australia 3.9

South Korea 0.6

Rest of Asia-Pacific 31.1

Total 100%


Figure 3: Australia renewable energy market segmentation: % share, by value, 2010



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COMPETITIVE LANDSCAPE




The renewable energy market will be analyzed taking utility companies supplying electricity generated

from renewable energy sources as players. The key buyers will be taken as industrial, household and

other end-users, and biomass fuel producers and manufacturers of power-generating equipment and

other heavy electrical equipment, including power turbines, heavy electrical machinery intended for fixed-

use and large electrical systems, as the key suppliers.

Rivalry is moderated by diversification amongst market players here, with some also selling electricity

generated from nuclear or fossil fuels.

In Australia, both residential and business customers are free to choose their power provider, and they

are often very willing to switch; in most states, there are several competing retailers. Many offer 'green'

electricity plans to end-users, and uptake is increasing. Domestic power generation is dominated by coal

(around 85% in TWh terms); hydro, biomass, wind, and solar contribute a further 10%. Solar and wind

energy sources are being harnessed on a comparatively small scale, and are at the stage ofcommercialization. Other sources, such as geothermal and wave power, are being investigated and

considered. Australia is believed to have a huge potential for development of its renewable energy market

but it is not yet fully realized. The development and investment of these technologies would substantially

mitigate Australia's greenhouse gas emissions, as electricity generation accounts for the majority of the

country's carbon emissions. There is a movement in place called 'The Transition Decade' that heads

towards transition of Australian energy system to renewable by 2020. The current Australian Government

has a Mandatory Renewable Energy Target to introduce 9,500 GWh of new renewable generation

annually, based on 1997 levels by 2010 and continuing through to 2020. This will increase the share of

renewable generation to approximately 20% of Australia's total generation. In addition to this, An

Expanded Renewable Energy Target was passed on 20 August 2009 to ensure that renewable energyobtains a 20% share of electricity supply in Australia by 2020. To ensure this the government has

committed that the MRET will increase from 9,500 gigawatt-hours to 45,000 gigawatt-hours by 2020.

In truly competitive markets electricity market, such as Australia, buyer power is weakened by the large

number of potential customers for renewable electricity. However, it is strengthened by the low cost of

switching retailer. The high number of buyers in this market, coupled with their small size, diminishes the

impact on market players of losing one consumer and weakens buyer power considerably. However,

although renewable energy is differentiated from conventional energy, in the sense that customers may

choose it because of its lower environmental impact, it is more difficult to differentiate within the

renewables segment itself, and price therefore becomes more significant to buyers. Overall, buyer power

is moderate.

For players that only operate as retailers, the most important suppliers are power generating companies.

Simply Energy in Australia is an example of this; its Green Power plan offers customers electricity that is

certified to have been generated using renewable sources.


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For companies vertically integrated from generation to retail to end-users, significant suppliers include

civil engineering companies capable of building generation plant such as hydroelectric barrages, and

makers of photovoltaic panels, wind turbines, and so on. Supplier power is likely to be stronger for pure

retailers than for the integrated companies. Overall, supplier power is weak.

New players will find it easier to enter the renewables market in a country such as Australia, with its

liberalized market structure and numerous retail players. Entering the market as a power generating

company has higher entry barriers than doing so purely as a retailer, due to the need to invest in

generating facilities. New entrants may be further dissuaded by recent decline in the market, which is

expected to return in 2010. Overall, there is a moderate threat from new entrants.

The most direct substitute for renewable energy is electricity generated in fossil-fuel or nuclear power

stations. Although electricity itself is always the same no matter how it is generated, buyers deciding

between the merits of renewable and non-renewable energy will consider issues such as environmental

impact and long-term energy security. Although traditionally cheaper than renewable sources of energy,

oil and gas prices are now volatile and have been rising at unprecedented rates in recent years, makingthem less desirable as primary energy sources. At the same time, thanks to technological advances,

renewable energy is becoming more economically viable - the cost of utility-scale wind power, for

example, has dropped more than 80% in the last 20 years. Retail prices of electricity are likely to reflect to

some extent the wholesale price, which itself is influenced by the cost of the primary energy sources

used. Renewably-generated electricity, like non-renewable, is also threatened by the direct use of energy

sources such as coal and gas. Switching costs here are much more significant, as users may need to buy

different equipment in order to start using gas rather than electricity. Overall, the threat of substitutes is

assessed as moderate.

Competitive rivalry in a completely liberalized renewable energy market tends to be high: easy switching

by end-users, numerous players, and high sunk costs and scale economies for players with generating

assets are the reasons. It is further increased by recent decline in the market, which is expected to return

in 2010. After receiving the Garnaut report, the Federal Government in Australia has announced that an

Emissions Trading Scheme called the 'Carbon Pollution Reduction Scheme' will be implemented in 2010

to further simulate the industry and viability, induce cost parity, reducing the rivalry level somewhat. The

overall rivalry level of the Australian renewable energy is strong.


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LEADING COMPANIES



LEADING COMPANIES

AGL Energy Limited

Table 4: AGL Energy Limited: key facts

Head office: Level 22, 101 Miller Street, North Sydney, New South Wales 2060,AUS

Telephone: 61 2 9921 2999

Fax: 61 2 9921 2552

Website: www.agl.com.au

Financial year-end: June

Ticker: AGK

Stock exchange: Australian

Source: company website D A T A M O N I T O R

AGL Energy (AGL) is an Australian private owner and operator and developer of renewable energy

generation. It is one of the largest retail suppliers of electricity and gas in Australia. The company is

engaged in the following activities: sale of gas and electricity; power generation and energy processing

infrastructure; development of natural gas production facilities; exploration, extraction, production, and

sale of coal seam gas (CSG); extraction and sale of liquid petroleum gas (LPG); and extraction and sale

of crude oil. AGL offers its services in New South Wales, Victoria, South Australia, and Queensland.

The company carries out its operations through its four segments: upstream gas; retail energy; merchantenergy; and energy investments.

The upstream gas segment of AGL is engaged in the exploration, extraction, production, and sale of

CSG; and exploration and development of other renewable energy sources (including geothermal).

AGL carries out the exploration, extraction, production, and sale of CSG through its Sydney Basin gas

projects, Moranbah gas project, and Gloucester CSG project. AGL's interest in 2P reserves (proved plus

probable) of coal seam gas, as of June 2010, was 1,578 petajoules (PJ).

The Sydney Basin gas projects of AGL are Camden gas project, Hunter gas project, and Sydney gas

project. The Camden gas project is located 50 kilometers (kms) south-west of Sydney and produces gas.

It has 2P reserves of 154 PJ of CSG. The Hunter gas project covers two petroleum exploration licenses

(PELs) over approximately 10,000 square km in the Hunter region of New South Wales. The Sydney gas

project covers two PELs over approximately 7,000 square km in the central coast and Sydney region of

New South Wales.


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LEADING COMPANIES



In addition AGL and Meridian Energy entered binding contracts to construct a 420 MW wind farm at

Macarthur in Victoria's south west in 2010. Upon completion, the wind farm is expected to be one of the

largest wind farms in the world. Furthermore, the company has also started the construction of a 63 MW

Oaklands Hill Wind Farm consisting of 32 wind-turbines that will provide renewable energy to the National

Electricity Market for at least 25 years.

AGL also owns and operates several renewable landfill gas and biogas (sewage) generation facilities

across Australia. These include Glenorchy City Council landfill gas extraction and generation (Tasmania),

Hobart City Council landfill gas extraction and generation (Tasmania), Gosnells City Council landfill gas

extraction and generation (Western Australia), and Rockingham City Council landfill gas extraction

(Western Australia), amongst others.

Besides its renewable energy business, AGL also has a 32.5% equity investment in Loy Yang Power

(LYP), one of Australia's largest coal-fired power stations. LYP is a 2,200 MW coal-fired base load power

station located in the Latrobe Valley, Victoria and is among the lowest short run marginal cost base loadgenerators in the National Electricity Market (NEM). The Loy Yang Power Station is the largest base load

generator in Victoria and supplies around one third of Victoria's electricity requirements.

AGL's retail energy segment is responsible for buying and selling of gas and electricity. The company

retails natural gas, electricity, and energy-related products and services to its 3.2 million customer

accounts across New South Wales, Victoria, South Australia, and Queensland. AGL is one of Australia's

largest retailers of natural gas. AGL currently sells around 190 PJ of natural gas to customers in

Queensland, South Australia, and New South Wales. AGL is a retailer of natural gas but does not own the

pipeline infrastructure that is used to transport gas to the end customer. AGL sources gas from a number

of areas; including: Cooper Basin, Bowen and Surat Basin, Gippsland Basin, and Sydney Basin.

The company's merchant energy segment is focused on the buying and selling of gas and electricity. It is

also engaged in operating and maintaining of power generation infrastructure; and extraction and sale of

liquid petroleum gas.

Through its energy investments segment, AGL makes investments in energy entities. AGL has 32.5%

interest in Greater Energy Alliance, an electricity generation company. It has 33.3% interest in Gascor

(Victorian gas transmission company), and 35% interest in CSM Energy (which is engaged in coal mine

methane and gas extraction). AGL has 50% interest in Australia based energy and water service provider,

ActewAGL. AGL also has 50% interest in Energy Infrastructure Management (a pipeline management

services company), 50% interest in Central Queensland Pipeline (a gas pipeline development company),and 50% interest in MWF JV (a company engaged in wind farm development).


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LEADING COMPANIES



Key Metrics

The company recorded revenues of $5,419 million in the fiscal year ending June 2009, an increase of

8.8% compared to fiscal 2008. Its net income was $1,464 million in fiscal 2009, compared to a net income

of $210 million in the preceding year.

Table 5: AGL Energy Limited: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 3,852.8 3,549.7 3,887.0 4,978.8 5,419.2

Net income (loss) 348.0 796.1 419.1 210.0 1,463.6

Total assets 6,028.2 7,226.5 9,617.0 8,668.0 8,284.5

Total liabilities 3,135.6 2,960.8 5,248.3 4,101.6 2,924.2

Source: company filings D A T A M O N I T O R

Table 6: AGL Energy Limited: key financials (A$)

A$ million 2005 2006 2007 2008 2009

Revenues 4,201.7 3,871.1 4,239.0 5,429.6 5,909.9

Net income (loss) 379.5 868.2 457.0 229.0 1,596.1

Total assets 6,574.1 7,880.9 10,487.8 9,452.9 9,034.7




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LEADING COMPANIES



Table 7: AGL Energy Limited: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 9.0% 22.4% 10.8% 4.2% 27.0%Revenue growth (10.4%) (7.9%) 9.5% 28.1% 8.8%

Asset growth 2.8% 19.9% 33.1% (9.9%) (4.4%)

Liabilities growth 5.5% (5.6%) 77.3% (21.8%) (28.7%)

Debt/asset ratio 52.0% 41.0% 54.6% 47.3% 35.3%

Return on assets 5.9% 12.0% 5.0% 2.3% 17.3%


Figure 4: AGL Energy Limited: revenues & profitability



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LEADING COMPANIES



Figure 5: AGL Energy Limited: assets & liabilities



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LEADING COMPANIES



Delta Electricity

Table 8: Delta Electricity: key facts

Head office: level 20, 175 Liverpool Street, Sydney, New South Wales 2000, AUS

Telephone: 61 2 9285 2700

Fax: 61 2 9285 2777

Website: www.de.com.au



Delta Electricity (Delta) is a state-owned electricity generation company with an installed capacity of over

5,000 megawatts. It produces electricity from several facilities using diverse energy sources such as coal,

water and biomass materials. The company primarily operates in Australia.

Delta generates electricity at five power stations located in New South Wales. These are Mount Piper,

Wallerawang, Colongra, Vales Point and Munmorah.

Mount Piper power station is in the Central West region of New South Wales. Located near the highway

to Mudgee, it is 25 km west of Lithgow, and 5 km east of Portland. Mount Piper operates two 700

megawatt generating units.

Wallerawang power station is in a picturesque valley 15 km west of Lithgow and about 160 km from

Sydney. Wallerawang consists of two 500 megawatt units.

Colongra power station is a low emission gas fuelled plant on the Central Coast, near the existing

Munmorah power station. It has four gas turbines and a combined capacity of 667 megawatts. It operates

during times of high peak demand such as very hot and cold days.

Vales Point power station is at the southern end of Lake Macquarie, about 35 km south of Newcastle.

Vales Point now operates two 660 MW generating units.

Munmorah power station operates on the New South Wales Central Coast, about 110 km north of

Sydney. The power station is located on the coastal strip between the Tuggerah Lakes, close to theCentral Coast beaches. It comprises two 300 megawatt generating units.

Delta produces renewable energy through co-generation at two operating sugar mills, in a joint venture

with the NSW Sugar Milling Co-operative. Condong and Broadwater each produce baseload renewable

energy using predominantly, waste from milling sugar cane as fuel.


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LEADING COMPANIES



Key Metrics

The company recorded revenues of A$1,004.6 million (approximately $751.5 million) in the fiscal year

ended June 2009, a decrease of 1.2% compared to 2008. The company's operating profit was A$130

million (approximately $97.3 million) in fiscal 2009, a decrease of 42.8% compared to 2008. Its net profitwas A$75.3 million (approximately $56.4 million) in fiscal 2009, a decrease of 33.7% compared to 2008.


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LEADING COMPANIES



Origin Energy Limited

Table 9: Origin Energy Limited: key facts

Head office: Level 45, Australia Square, 264 - 278 George Street, Sydney, NewSouth Wales 2000, AUS

Telephone: 61 2 8345 5000

Fax: 61 2 9241 7377

Website: www.originenergy.com.au


Ticker: ORG

Stock exchange: Australian


Origin Energy is engaged in exploration and production of oil and gas, electricity generation, and

wholesale and retail sale of electricity and gas. The company operates in Australia, New Zealand, and

other countries in the Pacific region, including Papua New Guinea, The Solomon Islands, Fiji, Vanuatu,

Tonga, Samoa, America Samoa, and the Cook Islands.

Origin Energy conducts its business activities through four core business segments: exploration and

production; retail; generation; and Contact Energy.

The exploration and production business segment includes oil and gas exploration, project developments,

and producing assets mostly in Australia and New Zealand. Origin Energy is focused on the Bass andOtway Basins offshore Victoria, the Perth Basin in Western Australia, Queensland's coal seam gas areas,

and the Taranaki Basin in New Zealand. In FY2010, the company's 2P (proved plus probable) reserves

have been estimated at 5,770 petajoules equivalent (PJe). Approximately 90% of Origin Energy's

reserves are natural gas, of which about 8% are located in the South Australian and south west

Queensland portions of the Cooper Basin. Another 56% of its natural gas reserves are sourced from the

central Queensland coal seam gas fields. Coal seam gas represents 71% of the company's 2P reserves.

Origin Energy's retail business segment sells electricity, natural gas, and liquefied petroleum gas (LPG) to

more than three million customers in Australia, New Zealand, and other countries in the Pacific region. In

FY2010, the company sold 30 terawatt-hours (TWh) of electricity to 1.7 million customers, 135 PJe of

natural gas to 868,000 customers, and 491 kilotones (Kt) of LPG to 349,000 customers.


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LEADING COMPANIES



The retail segment supplies natural gas to customers in Victoria, New South Wales, South Australia, and

Queensland, in Australia. Natural gas for its retailing operation is sourced under long-term contracts from

other producers and from its own gas resources. Origin Energy is a retailer of LPG in all Australian states

and territories. It is also a LPG wholesaler and owns and operates seven seaboard terminals on the

Australian east coast. In a joint venture with Caltex, a manufacturer of petroleum products, Origin Energy

retails automotive LPG through more than 800 service stations throughout Australia. Origin Energy is also

a major supplier of LPG in the Pacific region, to countries including Papua New Guinea, The Solomon

Islands, Fiji, Vanuatu, Tonga, Samoa, America Samoa, and the Cook Islands.

The retail segment also supplies electricity to customers mainly in Victoria, South Australia, Queensland,

and New South Wales. The segment also has an electricity trading function, which buys and sells

electricity on the spot market or from the National Electricity Market (NEM), a wholesale market for

electricity supply in the Australian Capital Territory and the states of Queensland. The retail segment's

trading function buys hedge contracts and enters into wholesale volume arrangements, which helps

protect the company and its customers from volatility in the spot market.

The generation segment of Origin Energy owns and operates gas-fired plants, which sells directly into the

NEM. Origin Energy operates four power stations and has interests in a portfolio of cogeneration plants

which supply electricity and steam under long-term contracts. The output from these plants is contracted

for sale. In FY2010, Origin Energy had a generation capacity of 1,620 megawatts (MW) and generated

2.36 TWh of electricity.

Origin Energy has 51.8% interest in Contact Energy (Contact). Contact is involved in supplying natural

gas and electricity energy related products and services in New Zealand. Contact is a wholesale

electricity generation company and is one of New Zealand's largest retailers of electricity. It supplies

electricity to 572,000 customers, and gas to 75,000 customers. Contact generates 27% of New Zealand's

total annual electricity generating capacity from its nine power stations.

Key Metrics

The company recorded revenues of $7,390 million in the fiscal year ending June 2009, a decrease of

3.0% compared to fiscal 2008. Its net income was $6,365 million in fiscal 2009, compared to a net income

of $474 million in the preceding year.


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LEADING COMPANIES



Table 10: Origin Energy Limited: key financials ($)

$ million 2005 2006 2007 2008 2009

Revenues 4,495.3 5,428.0 5,933.8 7,620.0 7,389.8Net income (loss) 276.2 304.3 419.0 473.7 6,364.7

Total assets 7,448.5 7,945.4 13,539.3 11,524.6 20,266.8


Employees 3,300 3,400 3,386 4,086 4,198


Table 11: Origin Energy Limited: key financials (A$)

A$ million 2005 2006 2007 2008 2009Revenues 4,902.4 5,919.5 6,471.1 8,310.0 8,059.0

Net income (loss) 301.2 331.9 456.9 516.6 6,941.0

Total assets 8,123.0 8,664.9 14,765.3 12,568.2 22,102.0



Table 12: Origin Energy Limited: key financial ratios

Ratio 2005 2006 2007 2008 2009

Profit margin 6.1% 5.6% 7.1% 6.2% 86.1%

Revenue growth 37.9% 20.7% 9.3% 28.4% (3.0%)

Asset growth 119.1% 6.7% 70.4% (14.9%) 75.9%

Liabilities growth 215.4% 6.7% 48.7% (16.8%) 48.2%

Debt/asset ratio 68.9% 68.9% 60.2% 58.8% 49.6%

Return on assets 5.1% 4.0% 3.9% 3.8% 40.0%

Revenue per employee $1,362,226 $1,596,469 $1,752,450 $1,864,911 $1,760,326

Profit per employee $83,694 $89,512 $123,734 $115,924 $1,516,122



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LEADING COMPANIES



Figure 6: Origin Energy Limited: revenues & profitability


Figure 7: Origin Energy Limited: assets & liabilities



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MARKET FORECASTS



MARKET FORECASTS

Market value forecast

In 2015, the Australian renewable energy market is forecast to have a value of $3.3 billion, an increase of50% since 2010.

The compound annual growth rate of the market in the period 201015 is predicted to be 8%.

Table 13: Australia renewable energy market value forecast: $ billion, 201015

Year $ billion A$ billion billion % Growth

2010 2.2 2.4 1.7 (0.7%)

2011 2.5 2.7 1.9 10.0%

2012 2.7 2.9 2.0 7.9%

2013 2.9 3.1 2.2 7.8%

2014 3.1 3.4 2.3 7.3%

2015 3.3 3.6 2.5 7.0%

CAGR: 201015 8.0%


Figure 8: Australia renewable energy market value forecast: $ billion, 201015



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MARKET FORECASTS



Market volume forecast

In 2015, the Australian renewable energy market is forecast to have a volume of 22.9 billion kWh, an

increase of 24.6% since 2010.

The compound annual growth rate of the market in the period 201015 is predicted to be 4.5%.

Table 14: Australia renewable energy market volume forecast: billion kWh, 201015

Year billion kWh % Growth

2010 18.4 6.8%

2011 19.3 5.1%

2012 20.2 4.9%

2013 20.9 3.4%

2014 21.9 4.6%

2015 22.94.5%

CAGR: 201015 4.5%


Figure 9: Australia renewable energy market volume forecast: billion kWh, 201015



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MACROECONOMIC INDICATORS




Table 15: Australia size of population (million), 200610

Year Population (million) % Growth

2006 20.7 1.5%

2007 21.1 1.8%

2008 21.5 2.0%

2009 22.0 2.2%

2010 22.3 1.7%


Table 16: Australia gdp (constant 2000 prices, $ billion), 200610

Year Constant 2000 Prices, $ billion % Growth

2006 466.9 3.0%

2007 484.8 3.8%

2008 495.9 2.3%

2009 502.2 1.3%

2010 517.1 3.0%


Table 17: Australia gdp (current prices, $ billion), 200610

Year Current Prices, $ billion % Growth

2006 726.5 5.2%

2007 859.1 18.3%

2008 935.4 8.9%

2009 892.3 (4.6%)

2010 945.7 6.0%



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Table 18: Australia inflation, 200610

Year Inflation Rate (%)

2006 3.6%2007 2.3%

2008 4.4%

2009 1.8%

2010 2.9%


Table 19: Australia consumer price index (absolute), 200610

Year Consumer Price Index (2000 = 100)2006 120.3

2007 123.1

2008 128.4

2009 130.8

2010 134.6


Table 20: Australia exchange rate, 200610

Year Exchange rate ($/A$) Exchange rate (/A$)

2006 1.3285 1.6668

2007 1.1954 1.6357

2008 1.1970 1.7515

2009 1.2812 1.7816

2010 1.0906 1.4462



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APPENDIX



APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated,analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases Created using 250,000+ industry interviews and consumer surveys

and supported by analysis from industry experts using highly complex modeling & forecasting tools,

Datamonitors in-house databases provide the foundation for all related industry profiles

Preparatory research We also maintain extensive in-house databases of news, analyst

commentary, company profiles and macroeconomic & demographic information, which enable our

researchers to build an accurate market overview

Definitions Market definitions are standardized to allow comparison from country to country. The

parameters of each definition are carefully reviewed at the start of the research process to ensure they

match the requirements of both the market and our clients

Extensive secondary research activities ensure we are always fully up-to-date with the latest

industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including:

- National/Governmental statistics

- International data (official international sources)

- National and International trade associations

- Broker and analyst reports

- Company Annual Reports

- Business information libraries and databases

Modeling & forecasting tools Datamonitor has developed powerful tools that allow quantitative

and qualitative data to be combined with related macroeconomic and demographic drivers to create

market models and forecasts, which can then be refined according to specific competitive, regulatory

and demand-related factors

Continuous quality control ensures that our processes and profiles remain focused, accurate and

up-to-date


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APPENDIX



Industry associations

International Renewable Energy Agency (IRENA)

Chamber of Commerce & Industry Tower, Old Airport Road (Sheikh Rashid bin Saeed MaktoumStreet/2nd Street), Abu Dhabi Corniche/1st Street, Abu Dhabi, UAE

www.irena.org

International Sustainable Energy Organisation (ISEO)

POB 200, CH-1211 Geneva 20, Switzerland

Tel.: 41 22 910 3006

Fax: 41 22 910 3014

www.uniseo.org

Related Datamonitor research

Industry Profile

Renewable Energy in North America

Renewable Energy in South America

Renewable Energy in Europe

Global Renewable Energy

Renewable Energy in Asia-Pacific


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APPENDIX



Disclaimer

All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form

by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior

permission of the publisher, Datamonitor plc.

The facts of this report are believed to be correct at the time of publication but cannot be guaranteed.

Please note that the findings, conclusions and recommendations that Datamonitor delivers will be

based on information gathered in good faith from both primary and secondary sources, whose

accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability

whatever for actions taken based on any information that may subsequently prove to be incorrect.


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ABOUT DATAMONITOR


ABOUT DATAMONITOR

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