Electricity giant AGL Energy is standing firm on replacing ageing coal-fired power stations with renewable energy, as it rejects a federal opposition plan to add nuclear energy to the nation’s network.
But UBS energy analyst Tom Allen said AGL’s indication of a significant earnings contribution from new batteries at Torrens in South Australia and Liddell added upside to expectations for the 2026-27 financial year.
Coal fuel costs rose 7.4% driven by an increase in generation at Bayswater power station in NSW, and gas costs for electricity generation rose 42.6% as the market operator directed the Torrens Island plant to support South Australia.
The home will also play a huge role in shifting the load to different times of the day – whether it’s home batteries added to rooftop solar, electric vehicles or hot water systems – so customers can share the benefit, Nicks said.
AGL was also seeing demand growth for the first time in six years as underlying demand from electrification starts to kick in, Nicks said.
