1. SLIDE 1 ELECTRICITY STATEMENT OF OPPORTUNITIES October 2011 PRESENTED BY MAGNUS HINDSBERGER

2. SLIDE 2 ESOO CONTENTS Executive Briefing Key findings National overview of generation and demand Supply-demand balances & LRC by region ESOO Key Changes since 2010: New chapter “Investment Opportunities” to accentuate focus on investment. New attachment “Historical Information” provides historical context “Fuel Supply” chapter now includes information on renewables. 2011 ESOO includes commentary on the Government’s recently announced Clean Energy Future Plan. Supply Demand calculator – downloadable tool

3. SLIDE 3 DEMAND PROJECTIONS

4. SLIDE 4 2011 PROJECTIONS (MEDIUM SCENARIO): DEMAND GROWTH RATES TO 2020/21

5. SLIDE 5 CHANGE TO PROJECTION STARTING POINTS SINCE THE 2010 ESOO

6. SLIDE 6 DEMAND GROWTH RATE CHANGES SINCE THE 2010 ESOO

7. SLIDE 7 GENERATION: CURRENT & COMMITTED

8. SLIDE 8 EXISTING, COMMITTED AND ADVANCED GENERATION

9. SLIDE 9 INVESTMENT OPPORTUNITIES

10. SLIDE 10 SUPPLY-DEMAND OUTLOOK

11. SLIDE 11 THREE GROWTH FACTORS AFFECTING GENERATION INVESTMENTS Percentage of year Demand in MW Maximum demand growth Energy demand growth Growth in LRET

12. SLIDE 12 NEM-WIDE NEW GENERATION

13. SLIDE 13 SUMMARY OF INVESTMENT NEEDS Identified reliability investment needs from 2013/14 o Based on existing and committed generation o Could be met by publically announced (uncommitted) projects Little need for baseload capacity in the near future o Subject to no retirements Investment required to meet renewable energy target Investor interest is consistent with these drivers: o 11,500 MW of publically announced gas projects o 16,000 MW of publically announced wind projects

14. SLIDE 14 QUESTIONS & YOUR FEEDBACK

15. SLIDE 15 ESOO CONTENTS Executive Briefing Key findings National overview of generation and demand Supply-demand balances & LRC by region ESOO Key Changes since 2010: New chapter “Investment Opportunities” to accentuate focus on investment. New attachment “Historical Information” provides historical context “Fuel Supply” chapter now includes information on renewables. 2011 ESOO includes commentary on the Government’s recently announced Clean Energy Future Plan. Supply Demand calculator – downloadable tool

16. SLIDE 16 SPARE SLIDES

17. SLIDE 17 DETAILED SUPPLY DEMAND OUTLOOK Region Low Economic GrowthMedium Economic GrowthHigh Economic Growth LRC Point Reserve Deficit (MW) LRC Point Reserve Deficit (MW) LRC Point Reserve Deficit (MW) Queensland2014–155442013–143412013–14779 New South Wales2018–192222018–191902018–19367 Victoria2016–172182014–15962013–1496 South Australia2016–1792014–15462013–145 Tasmania (summer)>2020–21N/A>2020–21N/A>2020–21N/A Tasmania (winter)>2021N/A>2021N/A>2021N/A

18. SLIDE 18 CHANGES SINCE THE 2010 ESOO Queensland requires additional investment in 2013-14, consistent with the 2010 ESOO. New South Wales requires additional investment in 2018-19, two years later than the 2010 ESOO. o Due to a decrease in the maximum demand projections for the region. Victoria and South Australia require additional investment by 2014-15, one year earlier than projected in the 2010 ESOO. o Due to moderate increases in the maximum demand projections for both regions. Tasmania does not experience a reserve deficit within the 10- year outlook period.

19. SLIDE 19 RELATIONSHIPS BETWEEN LRC, ANNUAL MD GROWTH AND RESERVE DEFICIT Capacity (MW) LRC point Reserve deficit Annual MD growth

20. SLIDE 20 QUEENSLAND – REGIONAL OUTLOOK

21. SLIDE 21 QUEENSLAND SUPPLY-DEMAND BALANCE

22. SLIDE 22 QUEENSLAND – NEW GENERATION

23. SLIDE 23 QUEENSLAND – ENERGY PROJECTIONS

24. SLIDE 24 QUEENSLAND – POWERLINK AND AEMO ENERGY PROJECTIONS

25. SLIDE 25 NEW SOUTH WALES – REGIONAL OUTLOOK

26. SLIDE 26 NSW SUPPLY-DEMAND BALANCE

27. SLIDE 27 NSW – NEW GENERATION

28. SLIDE 28 NSW – ENERGY PROJECTIONS

29. SLIDE 29 VICTORIA – REGIONAL OUTLOOK

30. SLIDE 30 VICTORIA SUPPLY-DEMAND BALANCE

31. SLIDE 31 VICTORIA – NEW GENERATION

32. SLIDE 32 VICTORIA – ENERGY PROJECTIONS

33. SLIDE 33 SOUTH AUSTRALIA – REGIONAL OUTLOOK

34. SLIDE 34 SOUTH AUSTRALIA SUPPLY-DEMAND BALANCE

35. SLIDE 35 SOUTH AUSTRALIA – NEW GENERATION

36. SLIDE 36 SOUTH AUSTRALIA – ENERGY PROJECTIONS

37. SLIDE 37 TASMANIA – REGIONAL OUTLOOK

38. SLIDE 38 TASMANIA SUPPLY-DEMAND BALANCE SUMMER

39. SLIDE 39 TASMANIA SUPPLY-DEMAND BALANCE WINTER

40. SLIDE 40 TASMANIA – ENERGY ASSESSMENT

41. SLIDE 41 TASMANIA – NEW GENERATION

42. SLIDE 42 TASMANIA – ENERGY PROJECTIONS