[The financial implications of bringing forward the closure of Loy Yang by a decade include an impairment charge of $700 million.]
Why has AGL made this decision?
AGL plans to invest up to $20 billion by 2036 in new renewable and energy storage assets, funded by assets on the balance sheet, offtake agreements [where buyers agree to purchase future output] and partnerships.
Shares in AGL rose 19 cents or 2.9 per cent to $6.79 in early trade following the announcement.
“We need to use the coming years to invest in transmission storage upgrades.”
“(The generators) are critical to the country and the economy, that have worked successfully for many, many years at very affordable prices and yet they’re getting thrown down the river.”
Greens, environment groups want more ambitious action
“Without a national body to plan and coordinate our shift to renewable energy, the workers and communities who have for generations relied on the jobs and investment the coal industry has provided will be left behind,” she said.
Advocacy group Environment Victoria agreed while 2035 was “an improvement” it said it was “still not credible” as it falls short of a plan aligned to the Paris climate targets that AGL shareholders demanded last year.
An update on Torrens is due by the end of the year after talks with the government, the company said.