AGL Energy Limited 2012 Annual Report 21 Sustainable generation sources Carbon risk Vision Target FY2012 Performance FY2012 Target FY2013 Carbon risk Continuing  to lower the  emissions  intensity  of AGL. Intensity compared  to Australian  electricity average 1 : >50% below Intensity compared  to Australian  electricity average 1 : >60% below Emissions intensity  of investments in  new generation  capacity lower  than 0.7 tonnes  per MWh. Sustainable generation sources Australia’s  largest  renewable  energy  company. Renewable  proportion  of operated  generation  capacity 2 : 48% Renewable  proportion  of operated  generation  capacity 2 : 48% Increase renewable  investment  capacity to  1,740 MW. The carbon intensity of AGL’s operated  generation portfolio decreased this year,  due to a larger proportion of electricity  generation from AGL’s operated wind and  hydro generators, which have very low  greenhouse gas emission intensities. The Loy Yang A Power Station has a carbon  intensity of around 1.3 tCO$_{2}$e/MWh. This  will cause the carbon intensity of AGL’s  operated portfolio to increase significantly in  FY2013 from 0.35 to around 1 tCO$_{2}$e/MWh.  It is important to note that this will not  represent an increase in total emissions  from the Australian electricity generation  sector, but rather a reallocation of emissions  from one organisation to another. The total  emissions from Loy Yang are expected to  remain reasonably constant year on year. AGL uses three additional approaches to  measure and communicate greenhouse gas  performance. The Operational Footprint,  Equity Footprint and Energy Supply  Footprint provide a complete account of  the annual greenhouse impacts of AGL’s  operations, investments and the energy  supplied to our customers, and will be  available in the AGL 2012 Sustainability  Performance Report. During FY2012, AGL commenced operation  of the 52.5 MW AGL Hallett 5 Wind  Farm and the 67 MW AGL Oaklands Hill  Wind Farm respectively, increasing AGL’s  operated renewable generation capacity to  1,320 MW. Prior to the Loy Yang acquisition  on 29 June 2012, 48% of AGL’s operated  generation portfolio was renewable. While the proportion of renewable energy  in AGL’s operated portfolio declined to 27%  on acquisition of Loy Yang, AGL remains  the largest operator and developer of new  renewable energy in Australia. As at 30 June 2012, AGL has an additional  420 MW of renewable generation under  construction, as well as a pipeline of  further renewable and gas-fired generation  development opportunities. During FY2012, AGL also acquired the  development rights for the Silverton Wind  Farm in New South Wales (up to 300 MW  in stage 1), and was selected by the  Commonwealth Government as a successful  proponent in the Solar Flagships program,  to develop 2 large scale solar PV projects in  New South Wales, totalling 159 MW. 1 Figures refer to the sent out greenhouse gas emissions intensity of generation (scopes 1 and 2) from electricity generation  assets over which AGL had operational control during FY2012. Generation from AGL Loy Yang is not included in these figures  for either the period up to, or following the AGL acquisition (generation from AGL Loy Yang will be included from FY2013  onwards). Generation assets that are not operated by AGL are not included (for example, where AGL has a right to electricity  output or power purchase agreements with power stations operated by other organisations). 2 Figures refer to the capacity of electricity generation assets over which AGL had operational control, as at 28 June 2012, prior  to the Loy Yang acquisition. The renewable component includes the installed capacity of hydro, wind, solar, biomass, biogas and  landfill gas generation assets operated by AGL. Generation assets that are not operated by AGL are not included (for example,  where AGL has rights to electricity output or power purchase agreements with power stations operated by other organisations).