Michelle Slater
AGL will build 12 gigawatts of renewables and storage by 2036 as part of its announcement that it is closing Loy Yang A in 2035.
The Gippsland Times has seen documents ahead of this morning’s shareholder meeting which confirms the company’s decision to shut the Loy Yang A 10 years early.
The company is now planning to get out of coal by the middle of next decade after it had stated earlier this year it was closing Loy Yang A between 2040 and 2045.
As part of the plan, AGL will progressively decarbonise its assets with 12 gigawatts of renewables and storage by 2036 and an interim target of 5 gigawatts by 2030 at a cost of $20 billion.
The announcement is being made as part of the company’s strategic directions review after plans to split the company into two separate entities were canned earlier this year.
The company has also doubled-down on its commitment to transforming Loy Yang, the Hunter Valley and Torrens Island sites into industrial energy hubs.
AGL chair Patricia McKenzie said the company will “will work with its broad stakeholder group to deliver these ambitious outcomes”.
“It is particularly important that we support our people who maintain and operate our coal-fired power station,” Ms McKenzie said.
“We will work with our people, representatives and government to help develop the skills and capabilities required for new and existing industries as we progress to ensure the transitioning energy sector is supported by a skilled workforce.”
The early closure of Loy Yang A will cut 200 million tonnes of emissions compared with its previous closure date.
Ms McKenzie said the coal closures represented “one of the most significant decarbonisation initiatives in Australia” aligned with the Paris Agreement.
