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· Posted on
September 30, 2022

AGL has given into shareholders, saying "bye bye bye" to its largest coal-powered plant 10 years early

AGL has announced strategy... and it involves shutting down its largest coal-powered plant.

What's the key learning?

  • AGL announced a new strategy that includes shutting down its largest coal-fired power station by 2035
  • It will invest $20 billion to acquire batteries, wind turbines for the transition to renewables

👉 Background: AGL is the 185 year old gas and electricity company that happens to be Australia’s largest polluter.

👉 What happened: AGL has been in a bit of a mud fight lately.

  • Mike Cannon Brookes, co-founder of Atlassian tried to take AGL private... but it was twice rejected
  • AGL's plan to split the business into two companies was abandoned because it didn't get shareholder support
  • Board members fell on their sword after the failed split

👉 What else: Now, AGL has announced a new strategy that includes shutting down its largest coal-fired power station by 2035 (instead of 2045) and investing $20 billion into the energy transition.

What's the key learning?

💡Strategy is important… but execution is everything! While the strategy will help align AGL’s shareholders, staff and customers, the big question is whether it can execute?

💡There is a race for companies to acquire renewable resources. AGL will need to acquire batteries, wind turbines and actual real-life humans to build the renewables.

💡But they’ll be competing with a whole host of others who have also realised the need for renewables.. at the same time:

  • Queensland is spending $60 billion over 10 years on renewables
  • NSW spending $32 billion over 8 years on its energy infrastructure roadmap
  • Victoria sending nearly $19 billion over 10 years on wind farms

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