29 Investments AGL Loy Yang ActewAGL Silverton Wind Farm In June 2012, AGL increased its ownership  interest in the Loy Yang A power station and  adjacent coal mine, from 32.54% to 100%.  Loy Yang is Victoria’s largest power station,  producing 30% of the State’s electricity  requirement. Currently it has approximately  550 employees and up to 500 on-site  contractors. It is one of the lowest cost  generators in the National Electricity  Market and will remain so even with the  introduction of a price on carbon emissions.  The acquisition of Loy Yang increases AGL’s  owned or controlled generation capacity  to 6,000 MW.  The adjacent coal mine means that fuel  supply costs are substantially locked in  for the remainder of the power station’s  operating life. High levels of operating  reliability, coupled with low fuel costs and  more than $1 billion of free carbon permits,  will produce substantial future operating  cash flows. In future years, the results from operating  Loy Yang will be incorporated in AGL’s  Merchant Energy business results. ActewAGL is a 50/50 partnership between  AGL and Actew Corporation, an ACT  Government owned enterprise. Established  in 2000, it was the first utility joint venture  in Australia between a private company and  a publicly owned enterprise. AGL holds a  50% interest in ActewAGL’s retail business. The ActewAGL retail partnership  contributed an equity share of profits of  $28.0 million for the year compared, with  $29.8 million for the year prior. This slight  decrease is attributed to lower electricity  volumes that resulted from milder than  anticipated temperatures during the  year. This was partially offset by higher  gas consumption. In light of continued  competitive pressures, the partnership has  delivered a sound full year performance. The Silverton Wind Farm has development  approval for 282 wind turbines in Stage 1  and concept approval for a further 316  wind turbines in subsequent stages to bring  the site capacity up to 1,000 MW. Subject  to electricity network capacity, AGL will  develop up to 300 MW of generation  capacity in Stage 1. Subject to market conditions, construction  of the project could commence in 2014. In March 2012, AGL acquired all the shares  in Silverton Wind Farm Holdings Pty Ltd,  owner of the development rights for the  Silverton Wind Farm. The Silverton Wind  Farm is located near the township of  Silverton, approximately 25km north west  of Broken Hill, New South Wales. Silverton  has a high quality wind resource with a  wind speed of approximately 8 metres per  second and a wind farm capacity factor of  around 40%.  AGL has acquired the rights to develop the Silverton Wind Farm  in Broken Hill, which is scheduled to become the company’s first  wind farm development in New South Wales. In Victoria, AGL  has increased its 32.5% share of Loy Yang A Power Station to full  ownership. The business is now called AGL Loy Yang. Investing for the future