Australia’s AGL plans restructure to create two separate energy businesses

Facebook
Twitter
LinkedIn
Reddit
Email
Australian utility AGL Energy has proposed a structural separation of the company that would involve the creation of two separate businesses: one focused on energy retailing and the other on large-scale electricity supply.
AGL’s 53MW Broken Hill solar plant in New South Wales. Image: AGL.

Australian utility AGL Energy has proposed a structural separation of the company that would involve the creation of two separate businesses: one focused on energy retail and the other on large-scale electricity supply.

AGL, which is by far Australia’s largest greenhouse gas emitter, said the retail unit would be called “New AGL” and become the country’s largest multi-product energy retailer, “leading the transition to a low carbon future”.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

Boosted by the recent acquisitions of Solgen Energy Group and Epho, the business will target the deployment of more than 70MW of commercial solar per year. AGL said the renewables development platform “would be a cornerstone” of New AGL, which would have access to PowAR, an AGL-backed clean energy investment vehicle that is set to increase its portfolio of solar and wind assets to 1.3GW thanks to the recently announced acquisition of Tilt Renewables’ Australian unit. It is expected New AGL would be carbon neutral for scope one and two emissions from day one.

The second busines, dubbed “PrimeCo”, would become Australia’s largest electricity generator, according to AGL, and have 8GW of nameplate thermal capacity. In a presentation for investors, AGL said “coal generation has an essential role to play in Australia’s energy transition as the backbone of the NEM [National Electricity Market]”.

AGL CEO Brett Redman said: “The accelerating market forces of customer, community and technology are driving the imperative to create this new path and separate AGL into two distinct organisations.”

The move to split off its coal-fired assets into a separate unit has been condemned by critics who say the company is dodging its responsibility to manage their shutdown. “Just seven years after it acquired the last of its coal-fired power stations, AGL is walking away from managing their closure, by spinning them off into PrimeCo,” said Dan Gocher, director of climate and environment at the Australasian Centre for Corporate Responsibility.

“The demerger does nothing to reduce emissions, but it may appease some institutional investors who have been demanding AGL do something to reduce its carbon exposure.”

AGL said it will aim to confirm the timing and nature of the proposed structural separation by the end of the year.

Read Next

September 15, 2025
UNSW spin-out company Lab360 Solar has been awarded funding from ARENA to bring its drone-based PV inspection technology to market.
September 15, 2025
Australia has reached 26.8GW of installed rooftop solar at the end of the first half of 2025, according to a report from the Clean Energy Council (CIC).
September 11, 2025
Solar power generation in Central Europe has grown at more than twice the EU average rate since 2019, according to new figures.
September 10, 2025
The CEFC has said that a coordinated approach to transmission in Pilbara, Western Australia, could save more than AU$30 billion over 25 years.
September 9, 2025
Australia's National Electricity Market (NEM) broke records yesterday when renewables supplied 76.4% of total electricity demand, with solar power contributing nearly 60% of the record-breaking clean energy mix.
September 5, 2025
Research firm Rystad Energy has found that Queensland’s utility-scale solar PV power plants have dominated the best-performing assets, in terms of AC capacity factor, rankings for August 2025.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
September 30, 2025
Seattle, USA
Solar Media Events
October 1, 2025
London, UK
Solar Media Events
October 2, 2025
London,UK
Solar Media Events
October 7, 2025
Manila, Philippines
Solar Media Events
October 7, 2025
San Francisco Bay Area, USA