Rob Grant, CEO, Pacific Hydro

As Chief Executive Officer of Pacific Hydro, I am proud of our company, our people and what has been achieved during our short 17 years of existence. I am excited by the future and the vital role the company is playing in creating clean energy projects.

Operating in dramatically different political, socio-economic and geographical landscapes, Pacific Hydro continues to lead the sector as one of the world's most innovative and successful clean energy businesses.

In Australia, Pacific Hydro has been highly successful in increasing the awareness of climate change, lobbying for the appropriate political and policy framework for renewable energy and demonstrating the major contribution renewable energy can make in counteracting the causes and mitigating the effects of climate change.

Pacific Hydro is ready to provide the tools that will help curb the growth in greenhouse gases from the electricity sector and is working with the Australian Government on its emissions trading scheme to achieve Australia's challenging greenhouse gas reduction targets. It will require everybody to work together on transitioning Australia's energy system from the current generation mix, to one running on more renewable energy, more gas and significantly less coal.

In Australia Pacific Hydro aims to increase its generating capacity to 1400 MW of installed capacity by 2020 with 600 MW of installed capacity by 2015.

Our other core markets, Chile and Brazil, are investment grade, have both ratified the Kyoto Protocol and have strong regulatory frameworks that support the development of renewable energy projects.

Chile has a stable and open market economy. The country's strong growth is being driven by the resources boom and an investor friendly economy. The demand for new energy is high and with restricted gas supplies from Argentina, hydro power from run-of-river projects is proving critical support to this GDP growth. With a large pipeline of projects, Pacific Hydro is well placed to help meet the growing demands of the Chilean energy market over the coming years.

Brazil's economy is also growing at a rapid rate. We are the only company to have completed 2 wind farms in Brazil to date with our 58MW of operating projects in the country's northeast where the wind resource is amongst the best in the world.

We are very positive about Pacific Hydro's prospects in our three core markets, with our early identification of the potential of each of them placing us in an excellent competitive position for future growth. Our strategic moves into Chile in 2003 and Brazil in 2006 have created a solid platform for future growth with existing operating assets in both countries and more than 792MW of new hydro power and wind energy projects planned to come online in South America by 2013.

Pacific Hydro is equally excited about Perenia, our joint venture carbon credit business. As one of the very few players with expertise in the creation and commercialisation of carbon credits, we believe we have considerable value to add to this burgeoning market. As we continue to commercialise the carbon credits from our own and other projects around the globe through Perenia, we are ideally placed in Australia to help organisations plan for and operate under the upcoming emissions trading scheme.

Internally, Pacific Hydro is ever-evolving. Over the past five years, we have focussed on improving the health and safety performance of our projects and corporate places of work in all of the countries in which we operate. Today, we are developing measurement tools and metrics to monitor our own impact on the environment and communities and ensuring our business is truly sustainable.

Across our key markets we will help to meet the future energy needs of growing economies while cutting greenhouse gas emissions. We can confident that we can deliver on this promise because Pacific Hydro has the expertise, resources and commitment to deliver sustainable value for our partners, investors, employees, customers and communities over the long term.

Rob Grant
CEO