1. Green EnergyHow does it work?A presentation prepared by AGL For further information: Simon KelleyManager Carbon Policy and Regulationskelley@agl.com.au Tim NelsonHead of Economic Policy and Sustainability tanelson@agl.com.au

2. Assume that you are an existing customer buying a standard electricity product Your retailer buys electricity from a range of generators at different times to supply you with electricity It all travels down the same poles and wires to reach your house Summary AGL Education Series – www.aglblog.com.au March 2010 AGL Energy Limited

3. Now assume you buy 100% Green Power Your retailer will purchase all your electricity from a renewable generator. Because other customers may still be purchasing non renewable electricity, the actual electricity reaching your house may not be 100% renewable but your actions have resulted in your retailer buying more renewable and less conventional energy Summary AGL Education Series – www.aglblog.com.au March 2010 AGL Energy Limited

4. Summary AGL Green Energy™ is the premium green product offered by AGL 100% sourced from Green Power Electricity is sourced from new (post-1997) renewable generators Eligible generation includes solar photovoltaic (PV), wind and biomass The product is Green Power accredited Green Power is the only national accreditation program for renewable energy it is overseen jointly by the States and Territories generators can create a REC for 1 MWh of renewable energy production retailers must surrender a REC for every MWh of energy sold as Green Power accredited electricity Therefore, RECs used to supply customers with Green Power cannot be used by AGL to meet its overall RET target (i.e. no ‘double dipping’) AGL Education Series – www.aglblog.com.au March 2010 AGL Energy Limited