Australia’s AGL Energy Plans to Invest $13B in Renewable Energy by 2036

An Australian energy generator and retailer, AGL Energy Ltd. recently announced to spend up to A$20 billion ($13 billion) by 2036 on renewable energy and accelerate the end of coal-fired generating by ten years.

The country’s largest electricity producer and highest polluter made a U-turn following a vocal campaign by the top shareholder and billionaire climate activist Mike Cannon-Brookes that compelled AGL to drop plans to separate coal generating and prompted the resignation of its chairman and CEO.

AGL’s new chair, Patricia McKenzie, stated that “The firm had to accelerate its strategy to decarbonize to access a larger pool of money after a 70% decline in the share price of the company over the previous five years. AGL is ideally positioned as the largest emitter and the largest private investor in renewables in Australia to effect the pace of Australia’s decarbonization.”

“The strategic change was prompted by recent changes in state and federal policies as well as a much more unpredictable energy market in recent months. By 2030, the new Labor center-left government wants to see 82% of the nation’s energy come from renewable sources.”

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

Before 2036, it intends to replace the capacity with up to 12 GW of renewable generation, largely made up of wind farms and energy storage, and anticipates financing the investments through a combination of balance sheet assets, offtake agreements, and partnerships.

By 2030, AGL established an interim goal of having up to 5 GW of new renewable energy. Upon attaining targeted closure, the company’s yearly greenhouse gas emissions are anticipated to drop from 40 million tones to net zero.

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