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Investor Presentaiton

Australia's National Electricity Market Spa*ark Energy_26 The NEM covers five interconnected States: Qld, NSW (including the ACT), Vic, SA and Tas, which also act as separate pricing regions (inset). It is a wholesale market in which generators sell electricity and retailers buy in order to on-sell to consumers. The price is determined by (a) offers from generators to supply specified amounts of electricity at set times to retailers and industrials, and (b) the demand. A half-hourly averaged price, referred to as the Spot Price, is used as the basis for settling transactions which are made through the Australian Energy Market Operator (AEMO). There is a maximum cap price, currently set at $15,000/MWh and a minimum floor price of $-1,000/MWh. Generators may negotiate a power purchase agreement (PPA) with a retailer or industrial user or may sell on the spot market. Typically they do both, with the fixed PPA providing revenue certainty and the spot market, the opportunity to benefit from periods of high prices. The Tasmanian spot price for the last two years has averaged AUD88/MWh. Lemont is expected to be connected to the NEM. There is currently one ~500MW interconnector between Tasmania and Victoria (Basslink) with a second proposed 1500MW interconnector, Marinus Link, recently announced as a priority infrastructure project. https://www.marinuslink.com.au/ The four easternmost states plus South Australia and the ACT are interconnected and form Australia's National Electricity Market. Inset: Each of the States has its own pricing arrangement. The brown dots (which move in the direction of transfer) show the amount of power being exchanged via each interconnector at that particular five minute segment. ADELAIDE MELBOURNE HOBART Red Dolphin Systems Current Dispatch: 15:55 $ 90.99 $ 82.36 93 $ 76.42 SYDNEY 32; 9 180 $ 89.41 $ 90.48 300 BRISBANE
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