Australian Gas Light Company Acquires Southern Hydro Assets

0 Comments | Renewable Energy Today, Nov 2, 2005

The Australian Gas Light Company (AGL) recently announced it has expanded its power generation portfolio with the acquisition of Southern Hydro for $1.4 billion from New Zealand energy company Meridian Energy, Ltd.

This follows an earlier announcement by AGL of a plan to demerge into two new major listed businesses by separating its retail and merchant energy assets from its infrastructure assets.

According to AGL, the Southern Hydro assets consist of 11 hydropower stations located in Victoria and New South Wales, as well as Australia's largest wind farm, located at Wattle Point in South Australia. AGL noted that the total generating capacity of the portfolio is 736 megawatts.

The company said the hydro assets will serve as a key part of its energy business, while the wind farm will be part of the infrastructure business.

"These hydro and wind generation assets will help reduce the carbon intensity of AGL's power generation portfolio," said AGL managing director Greg Martin. "This will provide the company with a competitive advantage as governments and customers increasingly seek to reduce greenhouse gas emissions. There are also opportunities for future expansion of both wind and hydro generation with development projects included in the Southern Hydro portfolio."

AGL expects to complete the acquisition by the end of the month.

Contact: Graeme Thompson, AGL, phone 02-9921-2789, website http://www.agl.com.au.

(EIN STAFF: 10/31)