Australian electricity giant AGL is preparing a new round of job cuts as it moves to free more funds to spend on renewables and batteries, to replace its retiring coal-fired power stations.
The ASX-listed energy giant, under pressure from climate-minded shareholders including tech billionaire Mike Cannon-Brookes, plans to stop burning coal within 10 years, and has pledged to invest billions of dollars to replace its final two coal-fired generators in Victoria and NSW with cleaner sources.
Victorian coal plant Loy Yang A station is due to close in 2035.Credit: Eamon Gallagher
AGL today said it had begun consultations with its workforce about job cuts as it reviews costs and proposes changes to its organisational structure.
No decisions on redundancies have been made yet, but it is expected about 200 employees will be affected.
“As we transition our portfolio, and connect our customers to a sustainable future, we need to ensure that today’s business remains productive and competitive in this changing market while we continue to invest in our business for tomorrow,” an AGL spokesperson said.
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“We understand this may be a difficult time for our people and we’re committed to communicating with transparency and respect and providing support throughout the consultation process.”
AGL, which supplies electricity and natural gas to more than 4 million customers across Australia, is also the nation’s single biggest emitter of harmful greenhouse gases due to its ongoing ownership of the Bayswater coal-fired power station in NSW and the Loy Yang A generator in Victoria’s Latrobe Valley.
It has set an ambitious target to build 12 gigawatts of new renewable energy generation projects and “firming” assets, such as grid-scale batteries and pumped hydroelectric dams to back them up when it’s not sunny or windy, in time for Loy Yang A’s scheduled closure in 2035.