Australia's AGL Energy Program to Invest $13B in Renewable Energy by 2036

Sep 30, 2022 11:33 AM ET
  • An Australian energy generator and retailer, AGL Energy Ltd. just recently revealed to invest up to A$ 20 billion ($ 13 billion) by 2036 on renewable energy and also increase completion of coal-fired generating by ten years.

The nation's biggest electricity producer and highest polluter made a U-turn following a vocal campaign by the top investor and also billionaire climate activist Mike Cannon-Brookes that forced AGL to go down strategies to separate coal generating and also motivated the resignation of its chairman and chief executive officer.

AGL's new chair, Patricia McKenzie, stated that "The company had to accelerate its technique to decarbonize to access a larger swimming pool of money after a 70% decline in the share rate of the firm over the previous 5 years. AGL is preferably positioned as the biggest emitter and also the biggest personal financier in renewables in Australia to impact the rate of Australia's decarbonization.

" The strategic adjustment was motivated by recent adjustments in state and also government plans as well as a lot more uncertain energy market in current months. By 2030, the new Labor center-left government wishes to see 82% of the country's energy come from renewable resources."

As of right now, AGL plans to close the Loy Yang A power plant by 2035. The schedule for shutting Bayswater by 2033 and Liddell by April 2023 has actually not transformed.

Before 2036, it plans to change the capacity with up to 12 GW of renewable generation, mostly composed of wind farms and also energy storage, and expects financing the financial investments via a mix of balance sheet assets, offtake agreements, and also partnerships.

By 2030, AGL developed an interim objective of having up to 5 GW of new renewable energy. Upon achieving targeted closure, the company's annual greenhouse gas emissions are anticipated to drop from 40 million tones to internet zero.

Previously, Paris-headquartered renewable energy producer Neoen tattooed an innovative 7-year virtual battery agreement with AGL Energy to give 70 MW/ 140 MWh of virtual battery capacity in the New South Wales (NSW) area of Australia's National Electricity Market.

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