Australia’s biggest electricity generator AGL Energy is targeting 1.4GW of grid-scale battery storage projects as part of its plan to transition from coal-fired generation and achieve net zero by 2035.
In announcing the company’s 1H25 results, CEO Damien Nicks was upbeat despite a 6.5% drop in AGL’s half-year net profit to $373 million.
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“We delivered a strong first half result in line with expectations, driven by the flexibility of our generation fleet and its ability to capture higher realised electricity pricing. This included continued strong earnings from our growing battery portfolio.
“As anticipated, the result was impacted by increased Consumer customer margin compression due to lower customer pricing and heightened market competition. Our increased investment in the growth of the business and reliability and flexibility of our assets, combined with the impact of inflation, led to higher operating costs and depreciation and amortisation.
“Importantly, these results mean we are on track to deliver full-year earnings in line with our FY25 guidance range, and the reinstatement of a fully franked dividend for our shareholders.”
AGL’s capital expenditure almost doubled due to ongoing work on the Liddell battery project and increased renewables investment.
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Nicks said AGL would also be targeting final investment decisions for 1.4GW of grid-scale battery projects over the next 12 to 18 months.
The projects include nearly 900MW across four batteries in New South Wales and a 500MW battery in Queensland.
