TPW
19/11/2015 09:31
FORECAST
PRICE SENSITIVE
REL: 0931 HRS Trustpower Limited
FORECAST: TPW: Media Announcement
Media Announcement
19 November 2015
Reassessment of long term wind production estimates at Snowtown Stage 2
Trustpower has recently completed an operational energy assessment of its
Snowtown 2 Wind Farm in South Australia for the 12 month period following
commissioning of the last wind turbine. This assessment has determined that
P50 annual energy yield expectations should be revised to a level
approximately 9.4% below pre-construction forecasts (892 GWh per annum vs 985
GWh per annum). This revision is due to a number of factors associated with
energy yield prediction. In particular, resulting from the limitations with
industry modelling tools when applied to a site of this complexity and scale,
using modern large rotor turbines.
Energy yield modelling techniques are continuing to evolve to improve the
accuracy of prediction, informed by research and analysis by wind industry
participants and experts. Trustpower has undertaken a comprehensive analysis
in conjunction with independent engineering advisors to better understand the
factors contributing to this revision and will apply these learnings, along
with advances in modelling techniques, to future developments.
Trustpower expects that lower wind production at Snowtown Stage 2 would
reduce FY17 EBITDAF by approximately A$8.5 million in a year of average wind.
Trustpower also expects a reduction in the valuation of the Snowtown Stage 2
generation assets of between A$60-70 million. This reduction would be
applied against the Group's revaluation reserves. Snowtown Stage 2
generation assets were revalued upwards by A$315 million as at 31 March 2015
following an independent valuation of the Group's generation assets.
Trustpower remains pleased with its investment in Snowtown Stage 2 and the
value created for shareholders from this project.
Vince Hawksworth
Chief Executive
Phone: 021 223 4609
End CA:00273698 For:TPW Type:FORECAST Time:2015-11-19 09:31:03
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