MERREDIN ENERGY

ENERGY

ASSET DESCRIPTION

  • 82 MW peaking plant located in Merredin, 240km east of Perth, WA
  • 2 open cycle gas turbines connected to South West Interconnect System (South-West WA)
  • 46.7% equity interest
  • Board representation

INVESTMENT FUNDAMENTALS

  • Commercial operations commenced September 2012
  • Revenues from capacity credits payable by WA Government Independent Market Operator
  • Minimal revenues earned from energy sales only when system demands are high
  • Potential to expand to 120MW

KEY RISKS AND MITIGATION

  • Revenue subject to regulatory risk
  • Manufacturer’s (GE) warranty over turbines for 2 years
  • Ongoing asset management by Perth Energy
  • Refinancing risk mitigated through conservative gearing and 10 year financing