Canunda Wind Farm, Lake Bonney, Australia

Stage 1 construction has begun at Australia's largest wind energy project, the Canunda Wind Farm at Lake Bonney near Millicent, South Australia. The project will have installed capacity of about 135,000MWh/y, producing enough clean electricity to supply 30,000 homes.

The AU$92 million project is owned by Canunda Power Pty. Ltd., a wholly owned subsidiary of UK-based International Power Plc. The site is located on a ridge overlooking Lake Bonney, 14km from International Power's 63MW Snuggery peaking station. The wind farm will have 23 2MW turbines manufactured by Vestas Australian Wind Technology Pty. Ltd. It will start operation late 2004, and all 23 turbines are expected to be operational by early 2005. Construction of Stage 2 of the project (for 128MW) has already started.

The entire output from the wind farm has been contracted under a long-term power purchase agreement with Australian Gas and Light Company.

THREE ELEMENTS FOR SUCCESSFUL WIND ENERGY PROJECT

The Canunda Wind Farm (formerly called Lake Bonney Central Wind Farm) is the first in a series of major wind energy projects being developed by International Power and Babcock & Brown in South Australia and other states. According to Babcock & Brown, the Canunda Wind Farm has the three key components needed for a successful wind energy project - strong and proven wind resources, closeness to the transmission grid, and strong local community support.

In March 2004, International Power announced that it had raised AU$62 million of non-recourse finance to fund the wind farm's development and construction. The lead arranger banks for the financing were The Royal Bank of Scotland and Credit Agricole Indo-Suez. International Power will invest AU$30 million in this project, taking the total enterprise value to AU$92 million.

Wind Prospect Pty. performed the initial studies, including financial risk assessment, site selection and assessment, planning management, site design and optimization and cost estimation.

WHOLE OUTPUT ALREADY SOLD

AGL (the country's largest energy retailer with more than 3.1 million customers across Australia) has committed itself to purchase the entire electricity output of the Wind Farm. Canunda is the second purchasing agreement AGL has established with a Wind Farm in South Australia, following an earlier agreement with Starfish Hill. AGL also owns and operates landfill extraction sites and cogeneration facilities, including an existing arrangement with the Tarong Energy-owned Starfish Hill for the purchase of up to 120,000MWh.

The Wind Farm Distribution Line is currently also under development. This 16km line will transport the generated electricity, mainly alongside roadside verges, to a nearby substation at Snuggery. The distribution line traverses mostly roadside verges, avoiding areas of environmental sensitivity along the route.

VESTAS TO SUPPLY 2MW TURBINES

Vestas has received the €45 million contract to supply the turbines. These have a remote monitoring system, together with an underground electrical cable network, access tracks, crane hardstandings, wind monitoring masts, a 33kV double-circuit distribution line, small switchgear buildings and appropriate site signs.

Vestas's three-bladed pitch regulated machines have rotor and nacelle mounted on a cylindrical steel tower. Each turbine typically consists of a 60m to 70m-high tower and 30m to 40m-long blades, and hence may be 110m in height to the tip of the blade. These turbines have a swept area of 5,027m². They rotate at speeds between 10.5rpm and 24.5rpm, depending on the wind speed. The stop wind speed is 25m/s (there is an air brake with three separate pitch cylinders). Microprocessor-based monitoring of all turbine functions gives the option of remote monitoring. Output regulation and optimization uses OptiSpeed™ with OptiTip® pitch regulation.

MAJOR INTERNATIONAL SUPPLIERS

International Power plc is a leading independent electricity generating company with 11,072MW (net) in operation and 1,609MW (net) under construction. The company has facilities in operation or under construction in Australia, United States, United Kingdom, Czech Republic, UAE, Portugal, Turkey, Malaysia, Pakistan and Thailand.

Babcock & Brown is a global merchant/investment banking firm that acquires, manages, structures and arranges financing for "big ticket" assets, projects and other opportunities. Founded in 1977, Babcock & Brown is owned 80% by its employees and 20% by the HVB Group ("HVB").

Australian Gas and Light Company (AGL) was established in New South Wales in 1837 to light the streets of Sydney with coal gas. Today, AGL is Australia's leading energy provider. AGL's wholesale and retail marketing businesses sell natural gas, electricity, and associated products and services to around 3 million customers.

Vestas develops, manufactures, sells, markets and maintains wind power systems. The company began wind turbine manufacturing in 1979 and has played a major role in the dynamic wind power industry ever since.

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