AGL Energy Ltd is an Australian listedpublic company involved in both the generation and retailing of electricity and gas for residential and commercial use.[3] It is one of the "big three" retailers in the National Electricity Market.[4] AGL is Australia's largest electricity generator, and the nation's largest carbon emitter.[5] In 2022, 83% of its energy came from burning coal.[6]
The Australian Gas Light Company was formed in Sydney in 1837, and supplied town gas for the first public lighting of a street lamp in Sydney in 1841.[10] AGL was the second company to list on the Sydney Stock Exchange.[11] The company gradually diversified into electricity and into a number of different locations.
ActewAGL, a joint venture between the Australian Gas Light Company and Icon Water, a government-owned enterprise of the ACT Government, was formed in October 2000 as Australia's first utility joint venture.[12] Twenty-five per cent owned by AGL Energy, ActewAGL provides electricity, natural gas, and telecommunication services to business and residential customers in the Australian Capital Territory and south-east New South Wales.[13]
In 2000, AGL purchased emerging telecommunications provider Dingo Blue from C&W Optus for $22m.[14] AGL closed Dingo Blue down in 2003 [15]
AGL had New Zealand assets including a gas distribution system in the Hutt Valley and Porirua area, owned through its 71% owned subsidiary Natural Gas Corporation. This network was sold to Vector in 2004 for NZ$814 million.[16] The company bought Transalta NZ's electricity retail business for NZ$824 million in 2001.[17] Subsequently, selling the electricity retail asset for a loss.[18]
On 6 October 2006, the Australian Gas Light Company and Alinta merged and restructured to create two new listed companies, a restructured Alinta Ltd and AGL Energy Ltd.[19]
In Victoria, in June 2012, AGL Energy acquired Loy Yang A Power Station and the Loy Yang coal mine.[20] Loy Yang A has four generating units with a combined capacity of 2,200 MW.[20]
AGL announced in April 2015 and reaffirmed in September 2017 that it intends to close the Liddell Power Station in 2022.[22] The closure of this and other coal-burning power stations in Australia led to Prime MinisterMalcolm Turnbull, to seek advice from the Australian Energy Market Operator on extending the life of a number of them,[23] to head off future power shortages.[24] Turnbull said the government had been advised that if the Liddell plant were to close in 2022, there would be a 1,000 MW gap in base load, dispatchable power generation.[23]
In 2018, AGL was among 17 energy businesses that supported the launch of the Energy Charter, a global initiative aimed at bringing together all parts of the power supply chain to give customers more affordable and reliable energy.[25][26]
In 2019, AGL entered the telecommunications industry with the purchase of Southern Phone, a regional telecommunications company.[27] In September 2020, AGL signed an agreement to acquire energy retailer Click Energy from Amaysim for $115 million.[28][29] The company began selling broadband Internet services under its own brand in November 2020 and, in February 2021, it launched AGL Mobile, a mobile phone service provider.[30][31]
In June 2021, AGL announced its intention to split into a bulk power generator and a carbon-neutral energy retailer. AGL Energy was to be rebranded as Accel Energy and hold the company's coal-fired power plants and wind farm contracts, while the electricity and gas retail assets were to be spun off into a separately listed company, AGL Australia.[32] In May 2022, the proposed split was abandoned with the chairman, two board members and CEO resigning, the company citing the proposal was unlikely to gain the required 75% shareholder approval.[33]
In August 2024, AGL announced it would acquire Firm Power, a grid-scale battery project developer, and its affiliated Terrain Solar, a developer of solar and wind farm projects, for $250 million.[34]
Mergers and acquisitions
This is a listing of AGL's corporate acquisitions and disposals.
Aerial view of AGL Macquarie Bayswater (upper left) and Liddell (center) power stations (the latter was closed in 2023), with coal mining operations visible in the background
AGL has a diverse power generation portfolio—including base, peaking and intermediate generation plants—spread across traditional thermal generation as well as renewable sources including hydro and wind.[44] The following tables listing significant assets are based on AGL's 2016 Annual Report.[45]
In 2015 the New South Wales Environment Protection Authority ordered the suspension of AGL's Gloucester operations after finding toxic chemicals had been introduced into Hunter Water's systems.[52] The EPA subsequently found no "evidence of harm to the environment or pollution of waters"[53] and AGL was allowed to continue its Gloucester operations.[54]
In February 2016, AGL announced that exploration and production of natural gas assets would no longer be a core business for the company. This followed years of campaigning, including protests at shareholder meetings and a non-violent blockade of exploration sites, by anti-CSG community group Groundswell Gloucester.[55] This announcement included clarification that AGL would not proceed with the Gloucester gas project and that it would cease production at the Camden Gas Project in South West Sydney in 2023, twelve years earlier than previously proposed.[56]
AGL has implemented a decommissioning and rehabilitation program for its well sites and other infrastructure in the Gloucester region.[57] In November 2016, AGL commenced the progressive decommissioning and rehabilitation of wells at the Camden site.[58]
Power generation projects in development
Coopers Gap Wind Farm
In August 2017, it was announced that the Coopers Gap Wind Farm would proceed to construction, with AGL securing funding from the Powering Australian Renewables Fund.[48] When completed the 453 MW Coopers Gap Wind Farm will be the largest in Australia.[59] The final wind turbine at the Coopers Gap Wind Farm was completed in April 2020.
Silverton Wind Farm
In May 2017, it was announced that construction had commenced on the 200 MW Silverton Wind Farm in north western New South Wales.[49]
Barker Inlet Power Station
In June 2017, AGL announced the development of a new $295 million gas-fired generator in South Australia. The Barker Inlet Power Station, will replace two of the four Torrens Island A turbines which are expected to be decommissioned in late 2020. The island's B turbines will continue to operate as usual.[60] The Barker Inlet Power Station was officially completed and handed over to AGL in early 2020.
Crib Point Gas Import Jetty
In August 2017, Crib Point Import Jetty was announced as the preferred location for a new terminal importing gas from other markets.[61] The project is expected to cost $250 million, with construction expected to commence in 2021.[62]
In 2021, the Andrews State Government halted the project, despite gas shortages being forecasted, forcing AGL to announce that it would no longer proceed with the project.
Kanmantoo pumped hydro
In April 2019, AGL announced that it had acquired the right to develop a pumped hydroelectric energy storage project in the mined-out main pit of the Kanmantoo mine on the eastern side of the Adelaide Hills in South Australia.[63] The project is expected to be capable of storing and generating 250MW of electricity from 2024.[64] In early 2020, AGL announced that it would not be proceeding with the Kanmantoo Pumped Hydro project.
The Australian Government Clean Energy Regulator publishes an annual list of the ten largest emitters of greenhouse gases. In the 2019-20 financial year, AGL came first place on the list, with reported emissions of 42.4 million tonnes,[3] which is equivalent to nine million cars on the road.
In February 2016, AGL announced the creation of the Powering Australian Renewables Fund.[66] The Powering Australian Renewables Fund or PARF (now PowAR), owns and develops more than 1,000MW of large-scale renewable energy projects to support Australia's renewable energy capacity and transition to a low-carbon economy. Once fully invested, PARF expects to own approximately 10% of Australia's renewable energy capacity.[67]
The Loy Yang Power Station is a brown coal- fired thermal power station located on the outskirts of the city of Traralgon, in south-eastern Victoria, Australia. It consists of two sections, known as Loy Yang A and Loy Yang B. Both Loy Yang A and B are supplied by the Loy Yang brown coal mine. The Loy Yang power stations are located in the brown coal rich Latrobe Valley, along with the Yallourn Power Station.
EnergyAustralia is an electricity generation, electricity and gas retailing private company in Australia. It is one of the "big three" retailers in the National Electricity Market. It generates electricity primarily using coal fired generation, at the Yallourn Power Station in Victoria, and the Mount Piper Power Station in New South Wales. 10% of its generation is from wind power, 32% from gas, and 58% from coal. It is Australia's second biggest emitter of greenhouse gases, after AGL Energy. As a loss making company in 2023, its parent in Hong Kong, CLP Group, has stated that it is looking for partners for renewable energy investment, however as of this time, there were no plans to build new renewable energy itself.
EDF Energy is a British integrated energy company, wholly owned by the French state-owned EDF, with operations spanning electricity generation and the sale of natural gas and electricity to homes and businesses throughout the United Kingdom. It employs 11,717 people, and handles 5.22 million business and residential customer accounts.
Liddell Power Station is a decommissioned coal-fired thermal power station that had four 500 megawatts (670,000 hp) EE steam-driven turbine alternators, providing a combined electrical capacity of 2,000 megawatts (2,700,000 hp).
Torrens Island Power Station is located on Torrens Island, near Adelaide, South Australia and is operated by AGL Energy. It burns natural gas in eight steam turbines to generate up to 1,280 MW of electricity. The gas is supplied via the SEAGas pipeline from Victoria, and the Moomba Adelaide Pipeline System (MAPS) from Moomba in the Cooper Basin. The station is capable of burning either natural gas or fuel oil. It is the largest power station in South Australia and was formerly the largest single power station user of natural gas in Australia.
Wind power, derived from wind turbines, plays a crucial role in Australia’s energy sector. As of October 2023, the nation has an installed wind capacity of around 9,100 megawatts (MW), making wind power a key component of Australia's energy landscape. It accounts for approximately 5% of the country's total primary energy supply and 35% of its renewable energy supply. Australia's geographical features, including its southern regions and the eastern slopes of the Great Dividing Range, are particularly conducive to wind energy development. Notably, nearly half of Australia's wind farms are situated in coastal areas.
Solar power is a major contributor to electricity supply in Australia. As of December 2023, Australia's over 3.69 million solar PV installations had a combined capacity of 34.2 GW photovoltaic (PV) solar power. In 2019, 59 solar PV projects with a combined capacity of 2,881 MW were either under construction, constructed or due to start construction having reached financial closure. Solar accounted for 12.4% of Australia's total electrical energy production in 2021.
Wind power became a significant energy source within South Australia over the first two decades of the 21st century. In 2015, there was an installed capacity of 1,475 MW, which accounted for 34% of electricity production in the state. This accounted for 35% of Australia's installed wind power capacity. In 2021, there was an installed capacity of 2052.95 MW, which accounted for 42.1% of the electricity production in the state in 2020.
Energy in Victoria, Australia is generated using a number of fuels or technologies, including coal, natural gas and renewable energy sources. Brown coal, historically, was the main primary energy source for the generation of electricity in the state, accounting for about 85% of electricity generation in 2008. The amount of coal-fired power has decreased significantly with the closure in 2017 of the Hazelwood power station which supplied around 20% of Victoria's electricity, and to a lesser extent with the exit of Anglesea power station in 2015. Brown coal is one of the largest contributors to Australia's total domestic greenhouse gas emissions and a source of controversy for the country. Australia is one of the highest polluters of greenhouse gas per capita in the world.
The Australian Energy Market Operator (AEMO) performs an array of gas and electricity market, operational, development and planning functions. It manages the National Electricity Market (NEM), the Wholesale Electricity Market (WA) (WEM) and the Victorian gas transmission network. AEMO also facilitates electricity and gas full retail contestability, overseeing these retail markets in eastern and southern Australia. It is additionally responsible for national transmission planning for electricity and the establishment of a Short Term Trading Market (STTM) for gas.
The Macarthur Wind Farm is a wind farm located in Macarthur, Victoria, Australia, near Hamilton, 260 km west of Melbourne. It is on a 5,500 ha site which has an installed capacity of 420 megawatts (MW). Based on a capacity factor of around 35%, it is estimated that the long-term average generation will be approximately 1,250 GWh per year. Its actual capacity factor is much lower, with a historical average of 24.50% since 2013.
South Australia is a leader in utility-scale renewable energy generation, and also produces gas and uranium for electricity generation. Gas production is mostly concentrated in the Cooper Basin in the state's north-east. Gas is delivered from these fields by pipeline to users interstate and to Port Adelaide where it fuels three separate gas-fired power plants. Uranium is also mined in South Australia, though nuclear power generation is prohibited nationally. The Olympic Dam mine is the world's single largest known deposit of uranium and represents 30% of the world's total uranium resource. Many utility-scale wind farms and solar farms have been commissioned during the 21st century and geology with potential for geothermal energy has also been identified but is yet to be developed.
Macquarie Generation is an electricity generation company in New South Wales, Australia, owned by AGL Energy, and has a portfolio of generating sites using predominantly thermal coal power. The company now trades as AGL Macquarie and generates electricity for sale under contract.
Energy produced in the Australian Capital Territory mainly consists of solar electricity. Electricity consumed in the Australian Capital Territory mainly comes from the national power grid through substations at Holt and Fyshwick. The ACT currently mandates that 100 percent of its electricity, will be supplied from renewable sources by 2020. The ACT has five solar farms capable of generating about 56.3 megawatts. From 1913 until the mid 1950s some power was produced from the Kingston Powerhouse, a thermal power station in Kingston.
↑ Fernyhough, James; Macdonald-Smith, Angela (31 August 2020). "Amaysim offloads energy business to AGL". Australian Financial Review. Archived from the original on 4 November 2020. Retrieved 24 August 2024.
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A$1,218 million (2022) [2] 
A$860 million (2022) [2] 
