Macquarie Power & Infrastructure Income Fund. Rob Roberti Analyst Day pqof`qiv=`lkcfabkqf^i

Transcription

1 Macquarie Power & Infrastructure Income Fund Rob Roberti Analyst Day 2007 pqof`qiv=`lkcfabkqf^i

2 High Quality Assets High quality wind, hydro & biomass assets Low-cost power sources Predictable annual production, subject to wind & water flows O

3 Strong Cash Flow Profile Operate within contractual framework Stable revenue Predictable costs 96% of electricity generated sold under long-term PPAs Barriers to entry Access to land & transmission Z Stability for Investors Permitting & regulatory Large capital costs Consistent, inelastic demand P

4 Erie Shores Wind Farm Represents 31% of Fund s total installed capacity* 99 MW facility Represents 6% of Canada s installed wind capacity PPA with OPA expires in 2026 GÉñÅäìÇáåÖ=rKpK=ïáåÇ=Ñ~ÅáäáíáÉë=C=`Ü~é~áë Q

5 Erie Shores Wind Farm Operating since May 2006 GE 1.5 MW turbines GE Canada 4-yr O&M agreement 4-yr warranty for availability & performance Reliable performance Subject to wind speed & density Seasonal high period is fall/winter R

6 Performance Expectations Positive production outlook Annual production target of approximately 245,600 MWh Based on analysis of independent consultants during due diligence process Monitor & assess target as actual production record is established S

7 Erie Shores Wind Farm Strong focus on O&M 4- to 5-day annual maintenance shutdown Effective management of O&M costs Long-term strategy vital Solid relationship with GE operators Work closely to ensure seamless transition T

8 U.S. Wind Loan Sub-debt investment in six U.S. wind facilities Caithness Western Wind Holdings Receive two semi-annual interest payments March & September U

9 Hydro Power Facilities Represent 11% of Fund s total installed capacity* Total of 36 MW Long-term PPAs with BC Hydro & OEFC expiring from 2017 to 2042 Located in three different watersheds Arctic, Atlantic & Pacific Diversity offsets water flow variability GÉñÅäìÇáåÖ=rKpK=ïáåÇ=Ñ~ÅáäáíáÉë=C=`Ü~é~áë V

10 Hydro Power Facilities Hydro facilities performing well Above average water flows in Ontario during Q3 Availability: 95.1% Capacity: 45.9% Water flows typically greater during spring & autumn PPAs at Wawatay & Dryden have higher rates from October to March NM

11 Performance Expectations Sechelt Wawatay Dryden Hluey Lakes Long-Term Average 86,322 54,030 19,514 6,494 Production (MWh) Start of Operations * 1994* 2000 Total 166,360 Represents actual annual production averaged since the start of operations Supported by historical production data from OEFC, B.C. Hydro Reflects long-term hydrological patterns, including periods of high & low flows *earlier production records unavailable NN

12 Maintenance Schedule Year Sechelt Wawatay Dryden Hluey Lakes 2008 E & M E E 2009 M E & M 2010 E E E & M 2011 M E 2012 E E & M M E Typically have low maintenance requirements Scheduled during periods of low water flows Electrical inspections (E) every 2 yrs: typically 5 days Mechanical inspections (M) every 3 yrs: typically 5-7 days Dryden s Wainwright station (1 MW) slated to undergo turbine replacement in summer 2008: 3-month outage NO

13 Whitecourt Power Represents 9% of Fund s total installed capacity* 28 MW facility PPA with TransAlta until 2014 Purchases first 20.7 MW of power Remainder of net production sold at Alberta Power Pool spot price 33 employees Consistent, reliable performance GÉñÅäìÇáåÖ=rKpK=ïáåÇ=Ñ~ÅáäáíáÉë=C=`Ü~é~áë NP

14 Whitecourt Power 7-yr maintenance cycle Turbine/generator maintenance scheduled for Q Expected 24-day outage Regular semi-annual maintenance in April & October Typically 4-day outages Strong Q3 performance Availability of 96.8% Capacity factor or 96.5% NQ

15 Chapais 31.3% equity interest in Chapais 24.8% interest in Tranche A & B loans 50% in Tranche C loans Long-term PPA Hydro Quebec, expires 2015 Reliable performance NR

16 Macquarie Group s Renewables Expertise $1.1B of Assets Under Management Significant technical & management expertise globally Wind facilities in Germany, France, Sweden & U.S. Landfill gas & biomass in the U.K. Solar power opportunities in the U.S., Australia & U.K. Strong technical expertise to draw upon NS

17 Adding Value to Operations Focus on developing business plans Maximize performance Reduce costs Identifying areas for improvement Cost efficiencies at corporate level Operational tweaks Better inventory control Upgraded equipment Other enhancements NT

18 Renewable Energy Opportunities Renewable power fastest growing segment of North American power market to 2015 Hydro a large contributor to supply mix Wind growing at the fastest pace NU

19 Renewable Energy Commitment Provincial government commitment 2,000 MW of renewable energy supply for projects greater than 10 MW OPA s Integrated Power System Plan Calls on province to increase wind capacity Additional 3,000 MW of wind energy by 2020 AESO lifted cap on wind power production Provincial RFPs across Canada Economics of new wind projects are improving More realistic view of capacity factors, costs & risks NV

20 Wind Power Landscape Industry reliant on RFP process Can create uncertainty, erode economics Limited opportunities for merchant plants, bilateral financial contracts Virtually no Renewable Portfolio Standard to encourage new development Environmental permitting Lack of streamlined permitting process Availability of sites for wind power Wind speed & density Availability of equipment Proximity to transmission lines OM

21 Opportunities for MPT Right of first refusal on potential 51 MW expansion of current Erie Shores site Continuing to examine other opportunities in Canada U.S. renewable energy space offers attractive opportunities & returns ON

22 Hydro Power Landscape Recent projects small in scale Up to 50 MW Large projects face hurdles MPT s focus is on smaller scale projects Existing or RFPs Challenges similar to wind Reliance on RFP process Permitting & availability of sites Proximity to transmission Environmental concerns OO

23 Biomass Power Landscape Canada has more than 1,600 MW of installed biomass power capacity Attractive power source Less waste sent to landfills Controlled emissions Opportunities British Columbia & Alberta Challenges Sustainability of fuel source Proximity to forestry industry OP

24 Transmission Challenge Transmission a significant bottleneck Need for streamlined process Attract innovation & investment E.g. Competitive Renewable Energy Zones in Texas Enforceable Renewable Portfolio Standard Drive new investment in renewable energy OQ

25 Compelling Value MPT s wind, hydro & biomass assets capable of operating beyond PPA expiries Expected to remain cost competitive relative to any new generation capacity Continuing to explore acquisition opportunities Extend average asset life & PPA term Enhance returns to MPT s unitholders Excellent growth potential for MPT OR