ABC Wind/ Gerringong Power Cooperative Pty Ltd

Simon Mansfield

Managing Partner

ABC Wind

0448 00 52 19

Suite C 106 Fern Street

Gerringong Town Hall

Gerringong NSW

ABC Wind is an Illawarra based wind farm developer seeking to commercialise wind energy solutions for small and medium scale investors in regional Australia.

ABC Wind’s key business objective is to reduce the costs, risks and timescales associated with developing wind farms in populated regional areas. This will be achieved by developing innovative wind farm architectures that can successfully address a combination of energy, amenity and economic goals.

ABC Wind is targeting small to medium scale wind farms with installations from 30 kilowatts through to 10 megawatts, with farms scaled in size to integrate with existing rural land use in an appropriate and complimentary manner.

Gerringong Power Cooperative is an initiative of ABC Wind to build a demonstration wind farm in the southern Illawarra region. A locally owned business cooperative will be established to own the project on a long term basis as a separate legal entity to ABC Wind.

ABC Wind has begun discussions with international suppliers of key services to the wind industry to establish a joint venture company that combines local understanding with international experience to ensure wind farm projects are of the highest quality and reliability.

Potential partner companies cover the full spectrum of wind farm projects from wind analysis to civil engineering and development processes, through to procurement, certification, installation and maintenance.

Funding for the project could include a mix of local private investment, significant in kind products services supply from partner companies, government and utility funding and investment.

ABC Wind is working closely with a major heavy electrical supplier to develop a total solution package that will be demonstrated for future customers via the Gerringong Power Cooperative.

An active development schedule is anticipated with the goal of completing the project by April 2012.

The NSW South Coast Geography – land, people, energy

The NSW south coast has been identified by the State Government as one of five wind resource areas of state significance. Critical aspects to this regional include;

· Small scale family-owned farms - cattle, daily, vineyard

· Multi generation related family farm houses

· One to Five acre rural residential blocks

· Extensive 11KV power line distribution

· Distributed loads with predictable peaks and load concentrations

Business Goal: Establish three wind farm sites across the northern Shoalhaven encompassing with one to five turbines at each site – with capacity of up to10 MW during the first two years of project development.

· Long term low risk bond financing

· Long term sales contract

· Co op energy sales and backup purchases

Engineering Goal: Design and build a medium scale wind farm architecture that is appropriate to the natural and social geography of the NSW South Coast.

· Less than 30MW

· Scaled developments 1-10 turbines

· Streamlined local council approval

Environment Goal: Build wind farms that complement the existing geography and its use.

· Significant rural residential population

· Environmental amenity issues could impede large projects

· Pre-emptive design process

· Scale wind farms to be absorbed as a marginal change

· Avoid large farms using 75-100 meter towers

· Wind farms cannot overwhelm existing visual amenity

Community Goal: Offer local stakeholders an affordable entry point to the wind energy industry.

· Work closely with local suppliers

· Identify and develop the skill sets needed

· Broad ownership across multiple business sectors

· Reduce the development impediments for established wind farm architectures

Ownership Models: A variety of ownership models can be used to underwrite these projects

· Local energy co ops

· Single farm ownership

· Local councils

· Distributed commercial - anchor and local investors

· Unit Trusts – superannuation and non superannuation funds

Benefits for key stakeholders:

· Reference site

· Marketing exposure

· Business process development

· Skilled personnel recruitment

· Industry and Training activities

Status Report: June 23, 2009

· Five potential sites identified

· Key potential partners identified

· Several power resale models identified

· Ongoing State and Federal government discussions

· Various financing models available

Next Steps:

· Begin wind testing and analysis

· Select turbine supplier

· Formalize investment structure

· Determine financing needs

· Raise private investment

· Secure government support