Major Australian gentailer AGL Energy has closed the chapter on a year of “significant challenges,” including a significant dint to underlying profits, with a view to focus growth and spending on big batteries and flexible generation.
In its results for the financial year ended June 30, 2022, AGL reported an underlying profit after tax of $225 million for the period, down 58 per cent on the 2021 financial year.
AGL managing director and CEO Graeme Hunt detailed a year of challenging energy industry and market conditions, including a scuppered demerger plan, attempted takeover bid, an unprecedented energy market suspension, and an overall “material elevation in volatility” since mid-2021.
Hunt said AGL’s earnings were buffetted by a mix of planned and unplanned thermal generation outages, unprecedented market conditions, and increased residential solar volumes, among other factors.
But he says the underlying fundamentals of the business remain strong and resilient, and a big part of the company’s plan for the new financial year is to bolster this resilience with the development of AGL’s grid scale battery portfolio.
AGL is currently developing the Torrens Island big battery – expected to be operational in the first half of 2023; the Broken Hill battery, which recently reached a final investment decision; and big batteries at Liddell and Loy Yang, both of which have state government planning approvals.